India Diwali KK

Indian Smartphone Market Grows 24.8% YoY In Q2, 2015

August 19, 2015 - Written By Kishalaya Kundu

India’s smartphone market has grown by 24.8 percent YoY during the second quarter of this year, according to a report published by Cyber Media Research (CMR). One of the important takeaways from the report seems to be the growth of domestically manufactured handsets in the country, which now accounts for almost a quarter of all smartphones sold in India. In the quarter ended Mar 2015, locally made handsets accounted for only around 19.9 percent of all handsets sold domestically. While multinationals like Samsung and local players like Micromax have been assembling handsets in the country for a while now, Motorola – along with its parent Lenovo – have reportedly started to make smartphones in India in the past few weeks. Foxconn Electronics has also started churning out smartphones for Xiaomi and Asus from its recently set up manufacturing bases in the country. Companies like HTC and Gionee meanwhile, have also expressed interest in setting up manufacturing plants in India at some stage.

Coming to some of the other revelations of the report, overall smartphone shipments in the country grew to 24.41 million units in the quarter ended last June, with Korean handset maker Samsung apparently continuing to hold onto the number one position in the market and Micromax staying put at number two. A surprising new entrant at number three, according to the report, is another local vendor Intex, which has been able to appeal to the sensibilities and cater to the requirements of first-time buyers, according to CMR. The report goes on to say that Chinese brands have grown by an astounding 97 percent during the quarter, as opposed to Indian brands, which only grew by 48 percent during the same period on an admittedly much larger base to begin with.

Explaining the company’s findings, Mr. Karn Chauhan, Analyst at CMR’s India Telecoms Practice, 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”.