According to the new report by market research firm Counterpoint, smartphone shipments in India grew 15 percent annually in Q1 2017, reaching 29 million units.
The report says that Samsung continued to retain the top spot, while Vivo, OPPO, and Lenovo (including Motorola) made up the rest of the top five. Adding that the top five brands contributed to almost 70 percent of the total smartphone market and for the first time Chinese smartphone maker Xiaomi jumped to the second spot.
"India's smartphone market is witnessing a focus shift in distribution strategy by major brands. Offline brands like OPPO, vivo, and Gionee have now started focusing on online channels as well to gain extra market share. Online-only brands like Xiaomi and Motorola are moving fast into offline markets to widen their reach to the mass market, addressing consumers in tier-2 and tier-3 cities," said Karn Chauhan, Research Analyst at Counterpoint Research.
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During Q1, Samsung continued to lead the smartphones shipments market share with 26 percent share, followed by Chinese players Xiaomi with 13 percent, Vivo with 12 percent, Oppo with 10 percent and Lenovo with 8 percent.
On the whole, the mobile handset and smartphone segment witnessed a healthy growth of 6 percent and 15 percent YoY respectively in Q1 2017.
LTE-capable smartphones contributed 96 percent of the total smartphone shipments in Q1 2017.
The report revealed that almost four out of five mobile phones shipped were made in India during Q1 2017.
"The imposition of the Goods and Services Tax (GST) will have an impact on domestic manufacturing and the government will need to continue incentives for locally manufactured mobile phones to further push the domestic manufacturing ecosystem," it noted.
Shobhit Srivastava, Research Analyst at Counterpoint Research further added, "The ASP (average selling price) of smartphones in India increased by ₹2,000 ($31) during Q1 2017 as compared to Q1 2016. The reason for the increase in ASP is the growing number of users that are upgrading to the high-end specifications offered by brands in the ₹8,000 ($125) to ₹20,000 ($ 310) price segment.