The Indian smartphone market has made a comeback after two repetitive declines in sales, reveals the quarterly mobile phone tracker report of International Data Corporation’s (IDC). According to the data, the market has registered 27.5 million units of smartphones shipments in CY Q2 2016, posting a 17.1% growth over the previous quarter.
Among the vendors, Samsung leads the market with 25.1% share, followed by Micromax and Lenovo Group. Micromax reported 19.9% growth in the quarter over the previous one. Canvas 6 series and Yu Yunicorn are the smartphones that gave Micromax an edge in the quarter. On the other hand, Lenovo registered 10.3% growth. Moto G4 plus and Vibe K5 Plus were the key drivers for its surge in shipments. Intex is the fourth top player with its 9.8% drop in the shipment. Chinese vendors have posed a threat to Intex. Reliance Jio stands at the fifth position with 12.3% sequential growth in Q2 2016.
According to Karthik J., Senior Market Analyst, Client Devices, IDC India, “China-based vendors’ shipments grew 28% over the previous quarter of which Lenovo group, Vivo, Xiaomi, OPPO, and Gionee were key contributors driving the growth. Until now, Lenovo was the only China-based vendor to ship over a million units in a quarter, while this quarter saw additional three vendors joining the million shipments bandwagon. Xiaomi’s Redmi Note 3 was not only the top-selling model in the online channel but also a star product for the vendor contributing the majority of Xiaomi’s total shipments in Q2 2016.”
Apple’s iPhone SE failed to make any significant impact in the premium segment. Other findings in the IDC report exposed a decline in the online share of smartphones, from 35% in the previous quarter to 28%. “Healthy growth in the offline channel, online focused vendors expanding their footprint into retail channel followed by stringent norms to restrain excessive discounting on online platform are some of the reasons that could be attributed to online share decline this quarter,” said Karthik J.
However, online sales may bounce back as more offers will appear in the upcoming quarter due to festivals, IDC report estimated.