Chinese vendors edged out domestic rivals to dominate India’s smartphone market in Q4 2016, research firm Canalys said.
These vendors have continued to grab market share with “extremely price-competitive devices”, while local vendors have also suffered from the Indian government’s removal of some banknotes from circulation.
“Local brands’ target customers typically buy in cash and from independent retailers. With the short-term liquidity crunch caused by demonetisation, these retailers are suffering a slowdown in consumer spending,” analyst Rushabh Doshi said.
“In Q4 2015, Micromax, Intex and Lava took second, third and fifth place, accounting for almost 30 per cent of the market. One year on and all three vendors have dropped out of the top five, with their collective share falling to around 11 per cent,” the analyst continued.
Samsung continued to lead the market despite a year-on-year decline in sales (see chart, below), followed by Xiaomi, which is focussing its efforts outside of its domestic Chinese market on India. Oppo experienced strong growth to secure third position, having embarked on “extensive brand building” and expanding its channel presence.