Gadgets
India beats US to become second largest smartphone market; China still at top
Chinese startup Xiaomi shipped 9.2 million units into the Indian market, which is over 290% of its shipment in Q3 last year.
With a spirited recovery in shipments in the third quarter of 2017, India has now overtaken the United States to become the second largest smartphone market in the world, trailing just behind China. As per the report of research firm Canalys, a swift 23 percent year-on-year growth in Q3 2017 helped the shipment of the country’s smartphone market reach over 40 million units.
Stating that the current figures dismisses any doubts about the potential of the Indian market, Canalys research analyst Ishan Dutt said, “There are close to 100 mobile device brands sold in India, with more vendors arriving every quarter. In addition, India has one of the most complex channel landscapes, but with low barriers to entry. Growth will continue. Low smartphone penetration and the explosion of LTE (long term evolution, or 4G) are the main drivers.”
Accounting a total shipment of 75%, top five smartphone providers – Samsung Electronics, Xiaomi Inc., Vivo Electronics Corp, Oppo Electronics Corp and Lenovo Mobile Communication Technology Ltd – still dominates the Indian market.
Chinese startup Xiaomi shipped 9.2 million units into the Indian market, which is over 290% of its shipment in Q3 last year. However, Xiaomi was placed second, after Korean tech giant Samsung, which shipped 9.4 million units, which is 30 % more than in Q3 2016. Together the two major vendors accounted almost half of the total market in India.
Speaking on the massive growth of Xiaomi, Canalys analyst Rushabh Doshi said, “Xiaomi’s growth is a clear example of how a successful online brand can effectively enter the offline market while maintaining low overheads. But Xiaomi focuses on the low end. It struggles in the mid-range (devices priced between Rs15,000 and Rs20,000), where Samsung, Oppo and Vivo are particularly strong. Nevertheless, we predict Xiaomi’s continued go-to-market innovations will allow it to overtake Samsung within a couple of quarters.”
While Apple Inc started producing smartphones in India just earlier this year, the shipment of its iPhones doubled compared to the last year. Apple shipped an impressive 9,00,000 units in Q3 2017
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