According to foreign media reports, with the global smartphone market and the shipments of most individual smartphone markets such as the US and China, the demand for smartphones in one region has reversed: India.
According to market research firm Counterpoint, in 2018, India’s smartphone shipments were approximately 145.2 million units, up 10% year-on-year. Relatively speaking, in 2017, its shipments were 132 million units.
The research firm said in a report today that India won the championship in the world's fastest-growing smartphone market last year.
This is in stark contrast to the decline in interest in buying new smartphones in most markets around the world. According to another market research firm IDC, global smartphone shipments fell by 3% last year.
According to market research company Canalys, the world's largest intelligence China's mobile phone market shipments fell by 15.5% last year. (In the past few quarters, smartphone shipments in the US have also declined.)
Some smartphone manufacturers are turning their attention to India for growth. But so far, the winner of the Indian smartphone market is mainly Chinese mobile phone manufacturers.
The second hometown of Chinese mobile phone dealers
Chinese manufacturers dominate India and have achieved great success in selling low-end, low-end smartphones (selling for less than $230). According to Counterpoint, in 2018, Xiaomi is still India's largest smartphone supplier with a market share of 28%, up from 19% a year ago.
Therefore, it is not surprising that Xiaomi plans to focus more on expanding the Indian market. The company entered India in 2014 and relied entirely on online channels to sell mobile phones in the early days, but in recent years it has been actively opening physical stores. The company said late last year that it plans to open 5,000 physical stores in India by the end of 2019; currently, it has only about 500 physical stores in India. This week, it launched ShareSave, a cross-border e-commerce platform that is currently only open to Indians.
India's share of smartphone brand shipments
Millet promised last year to reduce hardware profit margins to 5% or lower. This radical strategy allowed the company to remain on Samsung. Samsung had a 24% share of the Indian smartphone market last year. Chinese mobile phone providers vivo and OPPO and India's Micromax They accounted for 10%, 8% and 5% respectively.
Overall, Chinese handset makers accounted for 60% of the Indian smartphone market last year, up from 54% in 2017. In an interview last year, OnePlus and Xiaomi executives said that India has become their most important market. One plus is the leader in India's high-end smartphone market.
Other Chinese mobile phone companies are also catching up. The report shows that Tecno's share of the Indian smartphone market increased by 221% last year as it expanded its offline sales channels. And Infinix and Huawei have gained market share in the glory sub-brands More than 100%. Although Huawei, the world's second-largest smartphone supplier, is facing increasing regulatory pressure from the US and European markets, the company has largely avoided being censored in India.
Finnish mobile company HMD Global, which sells Nokia-branded mobile phones, has a 138% increase in market share in India. (Nokia mobile phones once ruled the Indian mobile phone market.).
India is the second largest smartphone market in the world and has become a heterogeneous in recent years. While most markets are maturing and people are starting to keep their existing phones for a longer period of time, millions of people in India are buying their first smartphone every month. And this trend is likely to continue, because Counterpoint estimates that the penetration rate of the Indian smartphone market is only 45% so far.
In India, where per capita GDP is still less than $2,000, selling smartphones at low prices is the key to success. Smartphones priced between $150 and $230 showed the greatest appeal in the Indian market last year. Perhaps the biggest evidence in this regard comes from the rise of feature phones. These feature phones account for 56% of India's 330 million handset shipments. According to Counterpoint, in India, feature phones are still growing faster than smartphones.
The feature phone of the Indian company Jio accounted for 38% of the feature phone market in 2018, up from 11% in 2017. Samsung also sells feature phones in India and has a 12% market share, down from 21% last year.
Price barriers hit Apple, which last year only accounted for 1.1% of the Indian smartphone market. In order to increase its market position in India, Apple continues to offer consumers an older iPhone model. For example, the iPhone 6 released by Apple in 2014 is still being sold in India. The refurbished iPhone 5s is also available on the Amazon India website. The price is less than $115.