Despite the federal government’s steady push to assist home smartphone producers, China-based distributors are thriving and their collective market share has reached a large 53 % in 2017 from 34 % a yr in the past, International Data Corporation (IDC) has mentioned.
“The untapped demand in the lower-tier cities remains the key attraction for China-based brands to explore the growth trajectory in India,” mentioned Jaipal Singh, Senior Market Analyst, IDC India.
“Their strength in their home market of China and weakening position of local players has helped some of these China-based players to solidify their operations in India,” he added.
Finance Minister Arun Jaitley in the Union Budget introduced a hike in customs obligation on cellphones to 20 % from 15 %.
“Customs duty on import of mobile phone parts will be increased to 20 percent from the existing 15 percent. This will boost jobs in the smartphone sector in India,” Jaitley mentioned throughout his speech.
According to IDC’s Quarterly Mobile Phone Tracker, the Indian smartphone market witnessed a wholesome 14 % annual development with a complete cargo of 124 million models in 2017 — making it the quickest rising market amongst the highest 20 smartphone markets globally.
The market resumed its double-digit development after a brief slowdown in 2016 attributable to components comparable to demonetisation and a scarcity of smartphone parts.
This contrasts with China, the world’s largest smartphone market that noticed its first decline this yr, whereas the US was comparatively flat.
When it involves function telephones, 2017 was an distinctive yr for this class because it witnessed a 17 % annual development after declining for 3 consecutive years.
While function telephones stay related to a big shopper base in India, the Indian telecom operator Reliance Jio shipped enormous shipments of 4G enabled function telephones taking the management place in its maiden quarter in this class, IDC mentioned.
This resulted in a complete of 164 million function cellphone shipments in 2017 from 140 million a yr in the past.
“Xiaomi taking a lead over Samsung in the smartphone market and Reliance Jio emerging as the leading feature phone company in India were the two key highlights of the last quarter of 2017,” mentioned Upasana Joshi, Senior Market Analyst, IDC India.
Adapted From: Gadgets360