According to the new study by International Data Corporation (IDC), about 28 million smartphones were shipped to India in Q2 (April-June) and the industry registered 3.7 percent quarterly growth and a meager 1.6 percent yearly growth.
The study says that, that the Indian smartphone market is preparing for the biggest quarter so far as eTailers are getting ready for mega online festivals, and vendors are set to launch new models in the festive period.
"The sentiment is indeed positive in the market. All the ambiguities have cleared now, and vendors are gearing up for the upcoming festival season to recover from the slow start in the first half of this year," stated Jaipal Singh, Senior Analyst, IDC India.
"Indian vendors have shown an early sign of recovery and now when most of them are ready with their 4G product portfolio, a new set of China-based competitors have entered in the sub-$150 segment," said Upasana Joshi, Senior Analyst, IDC India.
"Indian vendors are putting all their efforts and second half of year will be crucial, either it will see a revival of Indian vendors or emergence of new dominance in the sub-$150 segment from China based vendors," Joshi further added.
IDC also pointed out that, Samsung retained its leadership position while seeing a marginal decline of 4 percent from the same period of last year. Samsung was followed by Xiaomi which saw a 25 percent growth.
Another Chinese smartphone player, Vivo remained in the third spot with 26 percent QoQ growth and gained 13 percent market share in second quarter. In the same period last year, Vivo had 4 percent market share. While OPPO grabbed the fourth spot even as its shipments declined by 13 percent QoQ. However, Lenovo (including Motorola) fell to the fifth position as its shipments declined 25 percent QoQ.
IDC also highlighted that 34 million units of feature phones were shipped in the quarter with 8.9 percent growth from the previous quarter.
''Reliance's 4G JioPhone has created an excitement both in the channel and consumer front. This may stabilize the declining feature phone market in the short term and year 2017 is expected to end with a similar volume as last year," said Navkendar Singh, Sr. Research Manager, IDC India.