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Has Apple toppled Samsung in India’s market for pricey smartphones?

KOLKATA | NEW DELHI: Has Apple toppled Samsung in India's market for pricey phones? The verdict appears to be two to one in favour of the US company. Counterpoint Research and CyberMedia Research rank Apple at No. 1 by volume in the Rs 30,000-plus category for the October-December quarter. Sales tracker Gfk says the South Korean company is still ahead.

Apple has trailed Samsung in the category for three quarters but record sales in the last quarter appear to have tipped the balance for the Tim Cook-led company.

Counterpoint Research said Apple gained a 55% volume share of the segment compared with Samsung's 35%. Cybermedia puts the US company's share at 61.4% and that of Samsung at 25.9%. According to GfK, Samsung's share of the market was 49.4% in towns with a population of 50,000 and above and Apple's was 41%.

Samsung has said it remains India's No. 1 in the segment while Apple didn't comment.

"Apple initially faltered in their sales of new iPhones during the fi rst month of launch due to the high price," said the chief of a leading cellphone retail chain. But it recovered by introducing discounts and buyback offers, he said. Samsung countered with promotions.

"It was almost neck and neck in the latter part of the quarter," he said. Tarun Pathak, senior analyst with Counterpoint, backed this view. "Aggressive marketing campaign during Diwali helped it gain momentum and leapfrog Samsung," he said, adding that by value, Apple had captured 58% of the premium segment followed by Samsung at 36%.

A Samsung Southwest Asia spokesperson said the company has consistently led the category. "We were again the market leader in this segment in last quarter and our success was fuelled by iconic products launched in 2015, including the flagship devices Samsung Galaxy S6, Galaxy S6 edge, Galaxy S6 edge+ and Galaxy Note 5, as well as by the stylish A series offering best-in-class smartphone experience," he said.

Counterpoint and CyberMedia track shipment numbers or the quantity of units despatched to dealers and retailers. GfK tracks sales at the retail end. All units shipped to dealers may not necessarily get sold and some inventory may remain in the channel.

INDIA KEY BATTLEFIELD India is a key battlefield in the global tussle between the brands as they seek to drive up sales. According to Gartner, Apple lost 2.7% global market share while Samsung gained 0.8% in the October-December quarter from the year earlier. In the January-September period last year, Samsung was ahead in the Indian market with 55% share compared with Apple's 37%, according to Counterpoint Research. Both brands are set to launch new devices.

Samsung will debut its new flagship Galaxy S7 on Sunday at the Mobile World Congress in Barcelona. Analysts expect it will be available in India within a few weeks, the quickest of launch windows for such a device. There's also speculation that Apple will unveil a new 4-inch iPhone specially desi gned for emerging markets such as India next month.

Apple has stepped up promotional schemes for the iPhone 6s and 6s Plus while Samsung has launched new devices such as the Galaxy A7 2016 edition in the Rs 30,000-plus range.

"The current quarter will be a tough fight between Samsung and Apple, especially since new launches are lined up and traditionally during this time smartphone sales slow down," said Counterpoint Research's Pathak.

While the overall Indian smartphone market grew 15% in the October-December quarter, the premium handset market grew 40%, according to Counterpoint. The premium segment is just 4% of the total market and Samsung and Apple together control almost 90% of it. Other top players in the segment are Sony, HTC and Lenovo.

In calendar 2015, the Korean major led the premium smartphone segment with a 46.1% share, with Apple at 43.8%, CyberMedia said. October-December was Apple's best-ever quarter in India with over 800,000 iPhones sold, C ounterpoint said. The iPhone 6s series accounted for about half of this and the iPhone 5s about 30%.

Counterpoint's Pathak estimates the size of premium segment to double in 2016, but its contribution to overall handset market will remain in single digits by volume. By revenue, the premium segment contributes 25% to overall sales.


Source: Has Apple toppled Samsung in India's market for pricey smartphones?

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