Canalys Research: India's Smartphone Market Increased by 12% in Q1 2017

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Canalys Research: India's Smartphone Market Increased by 12% in Q1 2017

A report by research firm Counterpoint indicates that a whopping 27 million smartphones were shipped across the country in the period Jan-Mar 2017.

Canalys Research Analyst Ishan Dutt said Xiaomi's success in India lies in its online go-to-market strategy. Also, this F3 smartphone is Oppo's answer to the Vivo's ideal selfie smartphones like the Vivo V5s and the Vivo V5 Plus, etc.

He added that online-only brands like Xiaomi and Motorola are moving fast into offline markets to widen their reach to the mass market, addressing consumers in tier II and III cities. Smartphones in the mid-range segment also reported nearly 158 percent year-on-year growth during the first quarter of 2017.

Huawei, Oppo, Xiaomi, Lenovo Mobile and vivo are now manufacturing smartphones in India, and planning large investments.

What are your thoughts on the Chinese manufacturer's chances of overtaking Samsung in smartphone shipments?

Srivastava attributed the increase in ASP to the growing number of users that are upgrading to the high-end specifications offered by brands in the $125 - $310 price segment. "Smartphone brands are playing on their strong points to market themselves as a leader in key categories - such as Gionee with "Battery and Selfie", Oppo with "Selfie expert", Vivo with "camera and music". "Talking about the specs, the Oppo F3 will have a 5.5" FDH IPS display on the front which will be covered by a 2.5D Corning Gorilla Glass 5 on top. Micromax, LYF, and other brands plan to launch 4G feature phone in the coming months.

Chinese smartphone makers Oppo and Vivo are building ammunition to beat Samsung in India and for this, they are raking in whopping Rs 2, 200 crore in marketing this year. In terms of price, the ₹15,000-₹20,000 segment grew by 158 percent and the ₹10,000-₹15,000 segment grew by 58 percent. OnePlus, OPPO and Google made it to the top five in this segment, but each with marginal shares.

Integration of high-quality (8 Megapixel and above) selfie-focused camera in smartphones is one of the fastest-growing trends though merely a supply side push to drive the selfie trend.

Samsung's performance in India appeared to be at a standstill in Q1, 2017, despite the fact that the Indian market itself grew by 12% year-on-year.

Huawei's Honor series, OPPO's A series, Xiaomi's Redmi series and Samsung's J series are driving the $100-$199 price segment with the brands accounting for nearly half of the volumes of the price segment.

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