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Samsung leads mobile shipments in India with 19% growth

Despite the buzz around Apple launching iPhone 6S and and iPhone 6S Plus in few days, Samsung continues to rule the roost in the smartphone market in India with 19 per cent quarterly growth in shipment in April-June, 2015, according to a study by CyberMedia Research.

Smartphones constitute 43 per cent of 56.6 million mobile handsets shipped during the quarter. The overall market grew 7 per cent quarter-on-quarter (QoQ), while Smartphones alone grew at 24.8 per cent in shipment during the period.

Among all mobile handsets, Samsung leads the category with 20.6 per cent in total mobiles and 24.6 per cent share in smartphones alone. Samsung is followed by Micromax and Intex in overall shipments of mobile phones and as well as the smartphones category.

“While Samsung’s share continues to be ahead of its nearest competitor, there could be some advances at second and third spot, primarily affecting Micromax if it does not devise and implement a more robust marketing strategy to grow its shipments. ‘Me too’ strategies such as attempts to imitate niche Chinese players haven’t worked very well in favour of Micromax in the past – be it flash online sales, or other move,” said Faisal Kawoosa, Lead Analyst of Telecoms Practice at CMR.

Samsung can be attributed for leading the smartphone growth in country which was seen at 43.1 per cent in Apr-Jun, higher from 36.8 per cent in Jan-Mar in 2015. Tracking the trend, smartphones are expected to account for half of all mobiles phones shipped in India by September 2015, the study added.

Karn Chauhan, Analyst at CMR’s India Telecoms Practice, commenting on market strategy of mobile manufactures said, “The online sales route is an essential component of any vendors’ strategy, but, it should not be at the cost of expanding offline reach. Players like Intex have believed in reaching out to first time Smartphone users, and this strategy has paid off very well for them, giving them entry into the Top 3’s list.”

The report also highlighted the impact of the study on Make in India programme of the Modi government. The mobile handset manufacturing has had a positive impact on the programme as 24.8 per cent handsets shipped during the quarter were partially or completely manufactured in India against 19.9 per cent in the previous quarter.

However, China continues to enjoy the dominant position in the smartphone category. In the smartphone category, Chinese brands registered a 97 per cent annually in Q2 of calendar year 2015 as compared to 48 per cent by Indian brands. Such a trend can act as hindrance for growth of Indian branded mobile handsets.

“Although domestic manufacturing of mobile phones has increased, the government must introduce minimum value addition norms for mobile handsets as a threshold for qualifying to be labelled as ‘Made in India’. This will push the industry to devise ways and techniques to increase the value of domestic contribution across the value chain,” Mr Kawoosa added.