Smartphone shipments in India grew 15% in Q1

Chinese smartphone market 2017

Chinese smartphone market 2017

The report further points at a significant boost in the nation's "Made in India" initiative as nearly four out of five mobile phones shipped were made in India during Q1 2017 which is quite commendable.

Vivo grabbed the third spot with 11 percent share, whereas OPPO and Lenovo both had 9 percent share in the first quarter of 2017.

"Xiaomi's desire to move up the value chain in China will be an uphill struggle, considering Oppo and Vivo's lead and Huawei's plans to increase investment in its offline channel in 2017", Jia said. Brands like Samsung, OPPO, vivo, Gionee and Motorola contributed most to the growth.

Smartphone shipments in India registered a growth of 15 per cent annually in the first quarter of 2017, reaching 29 million units, a report said on Saturday.

The Indian smartphone market will reach a total of 113 million units in 2017, up 8.6% year-on-year, the report forecasts.

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Yet another positive development was the preference for high-end smartphones, as reflected in the increase in the average selling price. "Demonetization seems to have had no impact on it, as its target customer is young, Internet-enabled and primarily buys online", said Canalys Research Analyst Ishan Dutt. The Chinese smartphone marker is the second largest player in India, following Samsung, which took a 22% share of the market with six million phones shipped during the first three months.

Indian smartphone vendors are Micromax, Lava, Karbonn, among others.

Micromax which had a near 18% vendor share in 2014 had dropped to 11.9% a year ago. It's not like Oppo has been performing poorly either as the company produced a strong annual growth of 55%.

Canalys believes that Xiaomi is facing stiff competition from Huawei's Honor online brand, as well as Oppo and Vivo. "Vivo was just shy of shipping 3 million smart phones in the quarter". "It's ability to drive sales by investing in marketing campaigns has seen it displace local vendors that once thrived in this space".

However, with the introduction of the Goods and Service Tax (GST), analysts are anticipating "upheaval" in the smartphone market.

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