The overall India Consumer Storage Flash Memory market, comprising Micro SD cards, SD cards, and Flash drives, witnessed a 52 percent decline in Q1 of 2017 calendar year (CY) as against 1Q CY 2016, in terms of units shipped, according to the new report by Cybermedia Research.
The report said that, when compared to 4Q CY 2016, the market recorded a 5 percent growth.
According to Shipra Sinha, Analyst, Consumer Storage Flash Memory Market, "The Micro SD Cards form a prominent share of the consumer storage flash memory market and therefore, the rising trend towards launching mobile phones with higher internal memory has influenced the sector."
She said, "In 2016, we saw mobile phones with the 8GB internal memory holding about 38 percent of the overall mobile handsets market. However, this year we are witnessing shipments with 16 GB internal memory topping the chart. However, the quarter was largely affected by demonetization and would see a turnaround soon."
The report further pointed out that, in the overall India Consumer Storage Flash Memory market, SanDisk was the most favored vendor, its market share grew from 40 percent in 4Q CY2016 to 50 percent in 1Q CY2017.
It witnessed 26 percent sequential growth in terms of units shipped in 1Q CY 2017. Samsung maintained number two spot followed by Strontium at number three position in 1Q CY 2017.
However, shipments of unbranded Micro SD witnessed fall of 27 percent in 4Q CY2016 and 23 percent in 1Q CY2017 respectively on account of stocks piled up because of demonetization.
According to Shipra, "The market would witness a turnaround in the quarters to come as still a larger share of the mobile handset market is being captured by under Rs 10K market, where microSD cards hold greater traction. Consumption of memory space by android, entertainment and gaming apps and other apps would drive the growth of Micro SD in the near future. Although the smartphones are getting launched with higher internal memory these days, the video hungry consumers would play a key role in the overall growth of the market. Huge inclination towards 4G handsets because of affordable data plans available in India will be another push for the growth in Micro SD cards."