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Mobile handset shipments to touch 262 million units in India; feature phones continue dominance

Mobile handset vendors shipped 80 million mobile handset units in the third quarter this year and expect shipments to likely touch 262 million units by the end of fourth quarter, stated market research firm CMR.

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Mobile handset vendors shipped 80 million mobile handset units in the third quarter this year and expect shipments to likely touch 262 million units by the end of fourth quarter, stated market research firm CMR.

The report stated, since the beginning of the year, mobile handset vendors have shipped around 200 million mobile handset units in India. The smartphone market recorded 29 percent sequential growth in the third quarter, with 37.5 million units shipped, on the back of the festive season sales.

Commenting on the major trends witnessed, Prabhu Ram, Head – Industry Intelligence Group (IIG), CMR said, “3Q 2017 witnessed the continued leadership of Samsung in mobile handset shipments with a 22 percent market share, and a comfortable 11 percent lead over Xiaomi. 3Q also witnessed Indian mobile handset manufacturers offering bundled entry-level feature phones (Reliance Jio LYF), which was later replicated by its competition in the entry-level smartphone segment.”

CMR estimates the mobile handset shipments to clock 262 million units by the year end, with feature phones ruling at 141.6 million units and smartphones accounting for 124 million units. Interestingly, Chinese brands had a market share of 44 percent, while Indian brands had a 28 percent share. Xiaomi recorded an 84 percent sequential growth in the third quarter, to be on par with Samsung in smartphone shipments. Also, shipments of global brands recorded 52 percent sequential growth, while Indian brands grew by 28 percent.

Ram added, “We anticipate this trend to increase in 4Q, resulting potentially in an increased market share for Indian brands. This would also lead to consolidation of handset vendors in sub-INR 5K smartphone segment. It remains to be seen how this move will benefit Indian brands in countering the Chinese dominance."

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