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Samsung still the undisputed leader of India's Smartphone market, Xiaomi comes second

India's smartphone market is witnessing a focus shift in distribution strategy by major brands. The company's success is due to strategic initiatives to enter into India's online go-to-market. Players like Oppo and Vivo have rightly targeted the young audience with its camera-centric smartphones coupled with a huge advertising budget. The firm found that the average selling price of smartphones in the country was up INR2,000 ($30) in Q1 2017 when compared with figures for Q1 2016.

Samsung shipped 6 million units in the quarter, keeping its 22% market share steady.

It would, however, be interesting to watch similar figures for the second quarter as well, since Lenovo, which stands fifth at 8% after Samsung, Xiaomi, Vivo and Oppo, could post must better figures following the launch of its smartphones, Moto G5 and Moto G5 Plus, building on the popularity of its "G" series phones among the Indian smartphone users.

To appear as market leaders in key segments, smartphone brands are focussing on their strong points. In the first quarter of 2017 Indian smartphone market has grown 12 percent. Users are enjoying content on bigger screens, while cut-throat competition between telecom operators is resulting in low-priced 4G tariff plans. Sales of devices focus on selfies trend grew annually by a factor of nine in Q1 2017. The phone is expected to be launched with a price tag of Rs. 24,000-Rs.

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The report further pointed nearly four out of five mobile phones shipped were made in India during Q1 2017. The report also added that the Goods and Services Tax (GST) is likely to have an impact on domestic manufacturing and if the government wants to further push its Make in India initiative, it will need to add more incentives for manufacturers to make device locally.

The mid-end segment (Rs 15,000-20,000) witnessed the highest growth of 158% year-on-year during the said quarter. OnePlus, OPPO and Google made it to the top five in this segment, but each with marginal shares.

"Oppo-Vivo are focusing on volume sales, paying retailers upfront for prominent signages and branding for the next 1-2 years and even offering 5-10% more margin to retailers and shopfloor sales promoters", a senior executive with a leading cellphone retail chain told ET. Oppo has also made a decision to exit the sub-Rs 10,000 segment to focus on the Rs 10,000-20,000 bracket, while Vivo will focus on Rs 7,000-15,000 segment.


Source: Samsung still the undisputed leader of India's Smartphone market, Xiaomi comes second

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