Chinese brands captured 66% of Indian smartphone market in Q1 2019: Report

The latest Counterpoint research revealed that volumes for the Chinese companies rose 20 percent year-on-year (YoY) largely due to the growth of Vivo, Realme, and Oppo.

  • Published: April 26, 2019 1:48 PM IST

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During Q1 2019, Chinese smartphone brands have reportedly grabbed a market share of 66 percent in India. The latest Counterpoint Research data revealed that volumes for the Chinese companies rose 20 percent year-on-year (YoY) largely due to the growth of Vivo, Realme, and Oppo.

Furthermore, the report mentioned that Oppo volume grew by 28 percent year-on-year and Vivo’s 119 percent. The latter introduced devices in Rs 7,000 – Rs 14,000 price bracket, which drove its growth along with aggressive IPL campaign around flagship V series. Oppo, on the other hand, focused on launching smartphones in Rs 15,000 – Rs 25,000 price segment, drawing less crowd.

Commenting on the influx of Chinese brands, Tarun Pathak, Associate Director, said, “India’s smartphone market continues to attract a lot of attention from Global and Chinese players. Data consumption is on the rise and users are upgrading their phones faster as compared to other regions. This has led to users spending more on their purchase which is driving up the overall average selling price (ASP) in the market. As a result of this, the premium specs are now diffusing faster into the mid-tier price brands. We estimate this trend to continue leading to a competitive mid-tier segment in coming quarters.”

The report also revealed that Xiaomi once again emerged as the top smartphone vendor in Q1 2019 in the country. The company managed to secure a 29 percent of share. Besides, Samsung dominated the overall handset market during the quarter. Additionally, the company’s latest budget A-series and M-series started well. But, Samsung will have to come up with a strong follow-up device to continue its momentum on the online platforms. “Samsung’s recorded a strong sell-in of premium Galaxy S10 series which drove overall ASP for Samsung,” the report mentioned.

Huawei’s ASP (Average Selling point) also reached at its highest level as the company launched phones like Honor 10 Lite, Honor View 20. The brand is still counted among the top ten smartphone brands. Other brands like Asus managed to differentiate itself from other companies by focusing on phones with good battery life and design in a competitive Rs 8,000- Rs 15,000 segment. Nokia‘s aim on quality conscious users with a value proposition around the latest Android version, helped the company offering a great user experience. Transsion’s iTel, on the other hand, offered industry-first features to users looking in sub Rs 5,000 segment. Realme also managed to secure a position in the top five smartphone brands list.

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On the performance of different brands, Jain highlighted, “Xiaomi remains the market leader driven by new product launches. However, it faced strong market competition as compared to a year ago. Samsung did a major refresh in its product portfolio launching a new online-only M series. It also undertook a product refresh of the A series during the quarter. The new A series and M series launches quickly contributed to three-fifths of Samsung’s total smartphone shipments during the quarter. Vivo’s share reached its highest ever level in India, driven by the V15 series launch and an aggressive marketing campaign around the same. Realme continues to grow fast in India, leveraging on the strong momentum for its Realme 3 model during the quarter.”

  • Published Date: April 26, 2019 1:48 PM IST