India’s smartphone market once again returns to healthy growth levels after a brief slump in 2016, an IDC research has reported. According to the research, the year 2017 saw 124 million units shipped which is a growth of 14 percent making India the fastest expanding market across the globe. Not only does India hold a number one position as a smartphone market, it is also the biggest feature phone market. Especially in 2017, the Indian feature phone market witnessed 17 percent annual growth as compared to negative growth in the previous three years, the report said.
The most noticeable trend was Xiaomi’s dominance in the fourth quarter of 2017 as it overthrew Samsung with a market share of 26.8 percent as compared to Samsung’s 24.2 percent. Vivo stood at third place with 5.6 percent share whereas Lenovo appeared in the top 5 with a 5.6 percent share. Oppo stayed as the last player with 4.9 percent of market share.
In the feature phone market, Reliance Jio lead the resurgence of feature phones by emerging as the dominant player with 24.1 percent share in the fourth quarter. Samsung still followed with a 14.5 percent hold on the market.
In the overall year, Samsung still dominates the smartphone market share as well s the feature phone market share at 24.7 percent and 20.5 percent respectively.
Chinese smartphone makers like Xiaomi, Vivo, and Lenovo increased their market share to 53 percent from the previous 34 percent in 2016.
Commenting on the key trends of 2017Q4, Upasana Joshi, Senior Market Analyst, IDC India “Xiaomi taking a lead over Samsung in the smartphone market and Reliance Jio emerging as the leading feature phone company in India were the two key highlights of the last quarter of 2017. Joshi adds further “The growth of both the vendors was propelled by their aggressive pricing. Xiaomi’s offline expansion and higher marketing spends were other key factors for the vendor’s high shipments in the seasonally low quarter.”
Also read: Xiaomi dethrones Samsung to become the top-selling smartphone brand in India
Key takeaways from the report
Xiaomi displaced Samsung as top smartphone maker in Q4, 2017, and tripled its shipments year over year. The company sold 2 million units through offline channels and is pursuing aggressive marketing for offline growth.
Samsung although slipped to second in the Q4, it does remain a leader in yearly performance. Vivo climbed to third from fourth in the last quarter. However, shipments declined 41 percent from the previous quarter.
Lenovo’s shipments also declined both quarterly and annually and even Oppo’s shipments dropped by almost 50 percent compared to the third quarter of 2017.