Tuesday , February 21 2017

China nibbles at Samsung share to take 50 percent of India’s smartphone market

China nibbles at Samsung share to take 50 percent of India's smartphone market

MUMBAI: chinese language manufacturers took their biggest ever slice of the $10-billion Indian smartphone market in late 2016, accounting for a couple of in every two phones sold – a growing market share that ate into sales from top-promoting Samsung Electronics.

Samsung, the one hottest smartphone brand in India, commanded a roughly 30 percent market share just over a yr in the past. That slipped to 21 percent in November, in line with tech analysis firm Counterpoint, the last month for which data is on hand.

in the meantime – thanks to low value, stronger technology and an advertising blitz – chinese brands like Oppo, Lenovo, OnePlus, Gionee and Xiaomi took a combined share of over 50 percent, in comparison with simply 19 percent a 12 months ago.

“chinese brands are offering high quality that’s at par with Samsung, at a better price,” mentioned Manish Khatri, who owns two multi-brand smartphone shops in Mumbai. “of every 10 phones I sell, virtually six to seven at the moment are chinese manufacturers.”

celebrity endorsements from Bollywood actors like Hrithik Roshan and Ranveer Singh, together with big sponsorship campaigns by using brands equivalent to Oppo and Gionee of the wildly popular Indian most popular League cricket franchise have helped beef up notion of chinese language brands – once derided for his or her low high quality.

“In a rustic like India, there are two religions – one is Bollywood and the 2d is cricket,” stated Arvind R Vohra, Gionee’s India head, noting that both avenues have helped popularize its brand.

chinese language brand executives mentioned modern product features equivalent to powerful selfie cameras with flash, quicker charging and longer-lasting batteries have additionally helped them thrive in India, one of the world’s largest and fastest rising smartphone markets.

in the massive and ultra-competitive $120 to $440 mid-market smartphone section, chinese carriers have more than doubled their market share to sixty eight percent, while Samsung has misplaced 14 share points due to the fact November 2015, in step with Counterpoint.

“Being a world firm is Samsung’s greatest curse,” says Neil Shah of Counterpoint, including Samsung can’t compete on value like their chinese language opponents, who are targeted more on low-price markets like China, India and Indonesia.

Shah mentioned chinese providers’ get admission to to low-value components and their expertise in designing metal casing for affordable phones has let brands like Oppo, OnePlus and Lenovo supply better high quality products than Samsung, which makes use of plastic for its cheapest models.

including to Samsung’s woes final year was once the appearance of billionaire Mukesh Ambani’s new telecom undertaking Jio, with closely subsidised handsets to get shoppers on its 4G community.

Dyaneshwar Sarde, a 33-year-old Indian farmer who prior used a Samsung tool, mentioned he wanted to buy a 4G smartphone to make use of Reliance Jio.

“Samsung telephones have been comparatively dear, so i finished up buying a Lenovo a pal recommended.”

India’s dwelling-grown brands reminiscent of Micromax, Lava and Karbonn are feeling the warmth even more, in line with Counterpoint, with their total market share having dropped to lower than 20 percent from over 40 % closing 12 months.

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