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India’s Smartphone Shipments Decline 8.2% In Q1, Says IDC


India’s Smartphone Shipments Decline 8.2% In Q1, Says IDC

India’s smartphone shipments dropped 8.2% and reached 23.5 million units in January-March 2016, from the 25.6 million units in the preceding three-month period, declining consecutively for two quarters, according to research firm International Data Corporation (IDC). However, on a year-on-year basis, shipments grew 5.2% from the year-ago period.


Micromax, Intex and Lava saw shipments drop by 20.4% sequentially. New entrant Reliance Jio with its ‘Lyf’ brand of smartphones cornered 7.1% share of the market as the company prepares to launch its 4G services. IDC predicted Jio’s shipments to grow in the coming quarters owing to launch of its service offerings.

4G-based device shipments accounted for 65.5% of overall smartphone shipments in Q1 2016. This is primarily driven by Samsung’s J-series models. Samsung is the leader in the 4G smartphone market, followed by Lenovo and Reliance Jio.

“This year is expected to unfold many transitional phases in the mobile phone ecosystem as more vendors begin local assembling/manufacturing and an increasing trend for higher data consumption owing to affordable 4G devices and data plans,” IDC India Senior Research Manager Navkendar Singh said.

Samsung also leads the overall smartphone shipments in India with a 26.6% market share, with nearly 75% of its volumes are coming from the budget J series. Micromax stands at number two, but shipments fell 17.9% sequentially for the second consecutive quarter.

Intex retained the third spot, even though shipments sequentially declined by 10% in Q1 2016. Lenovo (along with Motorola) is at number four now as the shipments declined 35.8% (compared to previous quarter) with the sub-$150 segment seeing a steep decline in the shipments.

Chinese vendor LeEco, which entered India in Q1 2016, saw a majority of its shipments powered by the budget Le 1s smartphone. Other Chinese majors such as Oppo, Xiaomi, Vivo and Coolpad also gained traction in the Q1 2016.

“The first quarter of the year is usually expected to be slow after the festive season in the last quarter of the year. However, the contraction in Q1 2016 is mainly propelled by the decline in shipments from all the top five smartphone vendors of previous quarter,” said Karthik J, Senior Market Analyst for Client Devices at IDC.

According to IDC, 25 vendors are now manufacturing locally, and over two-thirds of smartphones were assembled in India.

Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.



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