According to the IDC (International Data Corporation), the Indian smartphone market is expected to show a double-digit growth in 2018. This is because of the rising popularity of budget smartphones, and vendors focusing more on manufacturing phones as well as their components in India.
About 30 million smartphones have been shipped in January-March quarter, making it the strongest beginning for a year and leading to an year-on-year growth of 11 percent. Top 5 companies that hold the most market share include, Xiaomi, Samsung, Oppo, Vivo and Transsion, which carries Itel, Tecno and Infinix brands.
Xiaomi is still maintaining its No. 1 position with 30 percent market share. It has almost doubled its volume compared to last year. Xiaomi also announced its big move towards local manufacturing by setting up its first SMT (Surface Mount Technology) facility in Tamil Nadu, in April this year. Xiaomi is followed by Samsung which has 25 percent market share. Samsung has shown pretty much a flat annual growth in the first quarter of 2018. While it has also been focusing on the low-to-mid range smartphone segment, their premium handsets such as the Galaxy S8 and S9 have also been driving sales for them.
Oppo climbed to the third spot, thanks to their mid-range A series smartphones, while Vivo slipped to the fourth position, because of its 24.9 percent decline in year-over-year shipments, in 2018 Q1. Transsion on the other hand, made its debut in the top 5, with more than threefold annual growth in shipments in 2018 Q1, taking a 4.6% share.
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Even the 4G feature phone market continues to grow. It has grown more than 50 percent quarter-on-quarter, thanks to the JioPhone. The service provider changed the market by introducing aggressive data plans that have also helped push sales. Currently, the company is enjoying a 38.4 percent market share in the feature phone segment, followed by Samsung at 10.4 percent, Transsion at 7.9 percent, Lava at 6 percent and Micromax at 4.7 percent.
The government has further increased the import duty on assembled PCBs (printed circuit boards), camera modules and connectors by 10 percent, pushing more companies to undertake a CKD (Complete Knock Down) manufacturing setup in India. This will further help influence the growth.