Smartphone vendors are having a dream run in the India market at a time when global smartphone shipments have been dwindling and Indian economy is going through its worst slowdown in recent times. India shipped 49 million units of smartphone in Q3 2019, growing 10% YoY (year on year), according to Counterpoint’s latest market report for India.
Xiaomi and Samsung continue to be the most sought after vendors with a market share of 26% and 20% respectively. While they retained their leadership, they were not the fastest growing vendors. On the contrary, both companies have lost a bit of their market since Q3 2018, when Xiaomi held 27% market and Samsung 23%. Surprisingly, Xiaomi's shipments grew YoY at 7% due to high uptake of its 7th gen Redmi Note 7 smartphones on online platforms.
Oppo's online focused sub brand Realme was the fastest growing smartphone vendor in last one year, jumping from 3% in Q3 2018 to 16% in the last quarter.
Vivo also moved up in the ladder recording it's highest ever market share of 17% in the last quarter, up from 10% in Q3 2018. The researchers attribute their growth to their new found focus towards online market.
Oppo's managed to hold on to the fifth spot despite the fact that its market share of 8% in the last quarter was the same as in Q3 2018.
According to Counterpoint, these top five vendors, four of which belong to mainland China, accounted for 87% of the total smartphone market share.
Price cuts and big discounts on Apple XR and launch of iPhone 11 ahead of the festive season has put Apple into the top 10 smartphone vendors in India.
In spite of its limited market share, Apple reported double-digit growth in India in its quarterly earnings report, which was published in June 2019. Apple has reportedly started assembling iPhone XR in India at Foxconn's Chennai plant.
In the premium segment, OnePlus was the leading vendor in Q3 2019 with twice the shipments compared to last year.
In a press statement, Anshika Jain, Research Analyst at Counterpoint Research, points out, "this was mainly driven by the spree of pre-festive season launches, aggressive marketing and incentivised channel strategy to maintain sufficient inventory to cash in on the festive season."
Surprisingly, growing demand of smartphones hasn't hurt vendors in the feature phone market. Even though the feature phone market declined by 37% YoY, it was largely due to holding back of new shipments from Reliance Jio, as the operator has been trying to get rid of older inventory of JioPhones before the festive season.
With 22% market share, up from 17% a year ago, Samsung was the leader in feature phone segment.
Indian vendors have been struggling in the smartphone market but have still got takers in the feature phone segment. Lava and Karbonn with market share of 16% and 7%, respectively were among the top five vendors in Q3 2019.