Counterpoint report of 7% growth in India, the second largest smartphone market in 2019
Based on the data from Counterpoint Market Monitor service research, Xiaomi has been able to take the first place in the Indian smartphone market for the second year in a row. Four Realme companies, Vivo, Asus and OnePlus recorded the fastest growth among smartphone manufacturers in India in 2019 with growth of 255, 76, 67 and 29 percent respectively. Have. The interesting thing is that 84% of the market share is owned by the top five smartphone manufacturers, which Counterpoint considers to be the highest so far.
As mentioned, the Indian smartphone market has seen a 7% growth not only compared to the previous year but also compared to the fourth quarter of 2018. Counterpoint analysts see this growth as the result of the expansion of Chinese brands and aggressive pricing strategy and attractive price offers to consumers. According to the report, India’s market growth has mostly been in the mid-range segment, where Chinese brands are looking to offer flagship features and high-end features in mid-range devices to attract users looking to upgrade their first or second phone. Smartphones themselves are more advanced products. In addition, online sales channels, while becoming a favorable sales platform, have influenced the upward trend of demand and have caused these products to be introduced to the market faster.
Tarun Pathak, one of the directors of Counterpoint, while pointing to the dynamics of the Indian market , believes that although the annual growth rate of the Indian smartphone market has been a single digit for the first time in recent years, the country is still considered untouched compared to most of the world’s markets; As the fourth generation technology penetration rate among Indian subscribers is reported to be around 55%. He further added: “We expect that with the passage of time and due to the continuous transfer of users from feature phones to smartphones and the exponential expansion of the key features of smartphones at low price levels, which is the result of intense competition between the main brands, the market demand will continue its increasing trend. . In addition, we expect brands to design their strategies at multiple price levels that include participation in the mobile ecosystem in the areas of hardware, software and services, and thus, new opportunities in various sectors, such as entertainment, gaming, financial services and to create etc.
Anshika Jain, a research analyst at Counterpoint, has also mentioned the competitive environment of the Indian market and the role of Chinese brands in it. According to him, the share of Chinese brands reached a record of 72% in 2019, while this figure was around 60% the year before. Over the past year, all major Chinese brands have expanded their presence in online and offline sales channels to capture more market share. For example, Xiaomi, Realme and OnePlus have increased their number of offline sales centers, while brands like Vivo have expanded their online channel with the launch of Z and U series smartphones. 2019 is also the fifth anniversary of the presence of some smartphone manufacturers in India, some of which have seen tremendous growth compared to the first year of their full presence in this market. For example, Xiaomi, Vivo and OnePlus have increased their market share by 15, 24 and 18 times respectively during the last four years; This indicates the maturity of the manufacturers to join the next wave of growth and further expansion in the Indian market.
According to the Counterpoint report, the growth of the supply of smartphones in the Indian market was achieved while It is that the market of simple phones or feature phones has faced a 42% decrease in the last year and a 38% decrease in the last quarter of 2019 compared to the same period last year. This downward trend is mainly due to the decrease in the supply of new products by the Indian operator Reliance Jio. Despite this, the annual supply of manufacturers such as itel, Lava, Nokia and Micromax has experienced year-on-year growth. In fact, in the quarter ending December 2019, itel was the top feature phone manufacturer, followed by Samsung and Lava. Of course, all the main brands in the Indian market are now trying to expand their products that are in the middle to high price segment; The segment that will most likely record the fastest growth in 2020.
In the Counterpoint report, the performance of the top smartphone manufacturers in India was analyzed during the last year, which we will review later.
The company achieved 7% annual growth in the fourth quarter and 5% growth in the whole of 2019 with the development of offline sales channels and the strong performance of the Redmi Note series. Currently, India is the largest market for Xiaomi products. Even the home market, namely China, has been left behind in 2019. However, Xiaomi’s supply growth rate was in single digits last year, as the number of active devices of this company increased in India and Xiaomi responded to a large part of the existing demand with its extensive presence in the market. Therefore, Xiaomi needs special strategies in 2020 to increase the number of consumers of its products while maintaining current customers.
Relying on the good performance of its affordable phones, the Chinese company has managed to register an annual growth of 76% in the whole of 2019 and 132% in the last quarter of this year. Vivo with the successful use of online sales channels and the aggressive supply of series phones With new features in the offline segment, the S has established itself in the Rs 15,000-20,000 ($250-300) price range. For this reason, Vivo has been able to reach the second position in the Indian smartphone market for the first time.
Supply of Samsung smartphones in the quarter The fourth quarter of 2019 has not changed much compared to the same period last year, but its performance in the whole year of 2019 has been accompanied by a 5% drop compared to 2018. One of the growth factors of the Korean company in the last season can be attributed to the improvement of the A and M series phones of this company (M30s, A30s,A50s and A20s) related. In fact, this is the first time that Samsung offers a completely new portfolio of products aimed at different sales channels; In this way, it has released the A series smartphones in offline channels and the M series in the online segment. Of course, this new policy will require more commitment and tenacity to maintain the supply process.
According to the Counterpoint report, the supply of Oppo has doubled in the fourth quarter of 2019; The growth is mainly driven by strong demand for the A5s smartphone in the affordable segment and the decent performance of the (recently launched) A9 2020 and A5 2020 in the offline segment. Now, by introducing new products from the Reno series, Oppo is seriously preparing to enter higher price ranges.
The Chinese company has seen a 255% growth in the Indian market in 2019. Realme’s impressive growth has been achieved due to the company’s aggressive strategy to create competitive advantages and includes products with a powerful design language and equipped with features that are the first in the smartphone industry. This issue has been welcomed most among the range of younger consumers who are looking for the appropriateness of the price paid with the value of the product. Realme also entered the advanced products sector in mid-October last year by introducing its first flagship smartphone, the X2 Pro, which has experienced strong sales at the very beginning.
Transsion group (including Itel, Infinix and Tecno) has achieved its highest share in the Indian market in the fourth quarter of last year. Transsion has maintained its strong performance in Tier 3 and Tier 4 cities and rural India. Meanwhile, Itel has been the top smartphone manufacturer at the lowest price point i.e. under Rs 4,000 (equivalent to around $60), while Tecno and Infinix, offering attractive features such as 6.6-inch displays, 20:9 aspect ratio, 5 1000 mAh and others have seen year-on-year growth in the 6-10 thousand rupees ($86-142) range.
The Cupertino giant was one of the companies that experienced the fastest growth among smartphone manufacturers in the Indian market in the quarter ending December 2019. This growth follows several price reductions of The iPhone XR is made possible thanks to their manufacturing within India’s borders. In addition, last year new Apple smartphones i.e. iPhones The 11 series was launched in the Indian market faster than ever with aggressive pricing and a suitable sales strategy. In fact, the new series of Apple iPhones, especially the iPhone 11 They were introduced at a lower price than the iPhone XR in 2018, and in this way, Apple was able to increase its market share during the festive season and the period of introducing new products.