India smartphone market shrinks 7% in Q1: CMR

By: Gizbot Bureau

Smartphone sales in India dipped 7 per cent in the first quarter this year to 19.5 million units, impacted by change in duty structure and restricted supplies from China, Cybermedia Research today said.

India smartphone market shrinks 7% in Q1: CMR

The overall mobile handsets market in the country, including feature phones, declined 15 per cent to 53 million units in the January-March period, compared to the previous three months (October-December 2014).

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Of the total shipment, 37 per cent (19.5 million) devices were smartphones. Feature phone shipments slipped over 18 per cent quarter-on-quarter in the reported period.

India smartphone market shrinks 7% in Q1: CMR

"With major announcements of new handsets and entry of some new brands happening in a big way in Q4, 2014, there wasn't really something very exciting in the market for customers that could push up sales in Q1, 2015," CMR Lead Analyst Telecoms Research Faisal Kawoosa said in a statement.

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Also, change in duty structure and consequent impact on the supply chain due to the Chinese New Year festivities contributed to the market contraction, he added.

India smartphone market shrinks 7% in Q1: CMR

Korean handset maker Samsung increased its share in the smartphones segment to 27.9 per cent in the first quarter of 2015, up from 23.7 per cent in October-December 2014.

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"Samsung's ability to add to its portfolio in all the major price segments within smartphones by launching new models in each of the entry-level, mid-range and high end segments of the market contributed to this increase," Kawoosa said.

India smartphone market shrinks 7% in Q1: CMR

Micromax, at second spot, registered a decline in market share in smartphone segment to 16.2 per cent in the said period from 17.8 per cent in the previous quarter. Intex emerged third with 9.2 per cent market share.

"While seasonality had its play in this quarter, some players also need to revisit their strategies and perhaps not rely very heavily on online sales," CMR Telecoms Analyst Karn Chauhan said.

India smartphone market shrinks 7% in Q1: CMR

He added: "e-Retailing works effectively for a brand aiming for 0-5 per cent or 5-10 per cent of the market share and those without a wide portfolio like Xiaomi and OnePlus.

"But, if you are Micromax, having a double-digit market share of middle to higher order price segment handsets, trying to replicate what Xiaomi and OnePlus are doing isn't a very good idea."

Source: PTI

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