Last year was a great year for smartphone vendors around the world as the smartphone market has been growing year-on-year. Chinese smartphone vendors are also gaining market, with the likes of Huawei, Xiaomi, OPPO and Vivo, having ventured into new markets throughout 2016. In the world's second largest smartphone market, India, Chinese smartphone manufacturers have been making big gains in terms of market share over the past few years. According to a research firm, IDC, Chinese manufacturers captured a 40% share in the Indian smartphone market in 2016.
South Korean electronics manufacturer, Samsung still sits at the top of the Indian smartphone market in terms of shares, while Chinese firm, Lenovo is still trailing behind in second place, having captured a market share of 13.4% compared to Samsung's large 26.1% market share. Lenovo also sells Motorola handsets in India, which caters to the high-end market, while Lenovo handsets are usually mid-range or budget handsets. In the third place is Xiaomi, also a Chinese company, and the firm managed to capture 10.7% of the market. While IDC didn't specifically list the market share of other Chinese smartphone manufacturers, it did state that China-based firms captured 40% of the market collectively. This includes OPPO and Vivo, both of which are highly popular in China, having been able to beat the likes of Huawei and Xiaomi to take the top spots in China. While Chinese smartphone manufacturers have been making gains in India, domestic manufacturers have seen a decline in smartphone sales. IDC reported that Micromax experienced a 16.7% month-over-month drop in sales in October. Intex is also facing pressure, with sales remaining stagnant throughout October, and its market share dipped to 5.3%.
The price war between smartphone makers in India remains fierce, as the average price of a smartphone in India is only $100. IDC also noted that during the Diwali month in India, it was almost like a "Chinese Smartphone Diwali", in which Chinese manufacturers dominated online sales during the festivities, with most having held promotions on their respective online stores. However, Chinese smartphone vendors have also been investing in physical stores as of late, which will benefit them due to their multi-channel strategies.