Recent IDC report suggests that smartphone market in India surpassed 30 million unit shipments for the first time ever in a quarter in Q3 2016 (July – September), resulting in a whopping 11% YoY (year-over-year) growth. The data further denotes that that this quarter also recorded 17.5% growth in terms of smartphone shipments in India as compared to the previous quarter. This sudden spike is undoubtedly attributed to online sales ahead of the busy festive season, which not only benefitted Indian brands such as Micromax and LYF, but also Samsung, Lenovo, Xiaomi which are based outside India.
E-commerce business and resulting online shopping sales have witnessed 31.6% growth, which stands at progressive 35% QoQ (quarter-on-quarter). Despite some outrage against buying Chinese products and smartphones on social media, we must say that IDC’s recent facts and figures demonstrate no effect on actual sales is seen. Lenovo (including Motorola) is persistently dominating the online space with a market share of 9.6%, thanks to Lenovo’s K5 and Motorola’s G4 series. Interestingly a lot of these popular smartphones are online exclusive!
Meanwhile, Indian brand Micromax lost its position to Lenovo and with a 32% decline in smartphone shipments over previous quarter. Following Lenovo is Xiaomi which fuelled the online shipments to a large extent with its Redmi Note 3 and newly launched Redmi 3S, recording 7.4% market share. In spite of the Note 7 fiasco, Samsung still rules at no. 1 position in India with a market share of 23%. However, it’s the Galaxy J2 which had a key role in the company’s success. Not so surprisingly, 4G smartphone shipments have also seen 24.8% tremendous growth.
On other hand, Reliance Jio influenced people in large numbers to buy 4G phones in India, which depicts how a newbie brand LYF could emerge so quickly. A division of Reliance Retail, LYF branded phones managed to capture 7% in terms of Indian smartphone market share. With the recent demonetisation of Rs 500 & Rs 1000 notes by Indian government, we expect smartphone sales in India to temporarily drop. It would be interesting to see by how much this erodes the Diwali gains by e-commerce sites & smartphone manufacturers in Q4.