August 10, 2020

Chinese language smartphone manufacturers’ market share in India slips: Counterpoint Analysis



Chinese language smartphone manufacturers noticed their market share in India fall to 72 per cent in June quarter from 81 per cent within the previous three months as a consequence of COVID-19 provide chain disruption and rising anti-China sentiment, Counterpoint Analysis stated on Friday. Chinese language manufacturers equivalent to Oppo, Vivo and Realme had a commanding market share on the planet’s quickest rising smartphone market however their share declined throughout April-June, Counterpoint stated in a report.

India’s smartphone shipments declined by 51 per cent year-on-year to simply over 18 million items within the June quarter, impacted by the nationwide lockdown imposed by the Indian authorities to fight COVID-19 in April and Could, Counterpoint stated. Shilpi Jain, Analysis Analyst at Counterpoint Analysis, stated the contribution of Chinese language manufacturers fell to 72 per cent in June quarter from 81 per cent in March 2020 quarter.

“This was primarily as a result of combination of stuttering provide for some main Chinese language manufacturers equivalent to Oppo, Vivo and Realme, and rising anti-China sentiment that was compounded by stringent actions taken by the federal government to ban greater than 50 apps of Chinese language origin and delay the import of products from China amid further scrutiny. This all resulted from the India-China border dispute throughout June,” she stated.

Nevertheless, native manufacturing, R&D operations, engaging value-for-money choices and robust channel entrenchment by Chinese language manufacturers leaves only a few choices for shoppers to select from, she stated.

“… within the period of globalisation, it’s tough to label a product based mostly on nation of origin as elements are being sourced from many various nations. This improvement has given a window of alternative for manufacturers like Samsung and native Indian manufacturers equivalent to Micromax and Lava, to recapture market share,” Jain stated.

She famous that Jio-Google’s partnership – which was introduced earlier this month – to convey a extremely inexpensive 4G Android smartphone may additionally acquire floor, banking on the rising #VocalforLocal sentiment. Xiaomi led the tally with 29 per cent share of the smartphone market, adopted by Samsung (26 per cent), Vivo (17 per cent), Realme (11 per cent), Oppo (9 per cent) and others (eight per cent) within the June quarter.

Within the March quarter, Xiaomi had 30 per cent share of the smartphone market, whereas Vivo had 17 per cent share, Realme (14 per cent) and Oppo (12 per cent). Samsung – which had fallen to the third spot with 16 per cent market share within the March quarter, regained the second place within the June quarter cornering 26 per cent share.

Smartphone distributors had shipped a bit over 31 million items within the March 2020 quarter, and 37.7 million items within the June 2019 quarter, as per earlier Counterpoint studies. The Counterpoint report stated the coronavirus-induced lockdown had resulted in zero shipments throughout April. Nevertheless, the market is beginning to return to regular and in June 2020.

Indian smartphone shipments registered a gentle decline of 0.three per cent y-o-y in June on the again of pent-up demand in addition to a push from manufacturers, it stated. Because of considerations over potential COVID-19 an infection, shoppers choose contactless buying and on-line channels, it stated including that smartphone manufacturers are additionally recognising this development by pushing extra stock to on-line channels.

“The COVID-19 pandemic wiped-out nearly 40 days of manufacturing in addition to the gross sales of smartphones as a result of nation-wide lockdown… the market witnessed a surge in gross sales because the lockdown restrictions had been slowly lifted,” Counterpoint Analysis Senior Analysis Analyst Prachir Singh stated. The quarter was, thus, marred by each demand and provide constraints which led unique tools producers (OEMs) to rethink their go-to-market methods, he added.

“On the availability facet, the factories had been shut down in April and began working in Could, which resulted in provide shortages for some producers. Some manufacturers maintained the availability of their merchandise by importing totally assembled handsets,” Singh stated. Moreover, the final week of the quarter noticed elements being held up at customs, which additionally impacted the availability chain, he added.

OnePlus regained its prime place within the premium market (over Rs 30,000 section), whereas Apple remained the main model within the ultra-premium section (over Rs 45,000). Within the function telephone section, Itel occupied the highest slot with 24 per cent share, adopted by Lava (23 per cent), Samsung (22 per cent), Nokia (9 per cent) and Karbonn (5 per cent).

Counterpoint stated the function telephone market was the worst affected section because it declined by an enormous 68 per cent y-o-y within the June 2020 quarter as shoppers on this extremely cost-sensitive section tried to save cash by lowering discretionary purchases. Within the near-to-mid time period, this might really increase the used and refurbished cell phone market, it stated including that India is dwelling to greater than 350 million function telephone customers.