According to a recent report released by Cybermedia Research, India registered 73.5 million mobile handset shipments for the period January-April 2013, registering a growth of 11.1% year-on-year. During the same period, 9.4 million smartphones were shipped in the country, a growth of 167.3% on an annual basis.
Commenting on the insights, Faisal Kawoosa, Lead Analyst, CMR Telecoms Practice said,”The featurephones market in India has matured, whereas the smartphones category is showing promising growth. This is attracting relatively new entrants such as Micromax and Karbonn to start offering smartphones, particularly for entry level users who would like to migrate to a more sophisticated mobile experience.”
The smartphone market in India saw a rise in shipments by 167.3% during the period January-April 2013 over the January-April 2012 number, taking the overall contribution of smartphones to 12.8% for the period. The report found that South Korea based Samsung Electronics, which has most of its phones based on Google’s Android software, sold some 4 million smartphones during this period and retained market leadership with 40% market share. Homegrown companies Micromax and Karbonn, which operate within the Rs 7000 to Rs 16,000 price point, saw its smartphone shipments grow 19% and 8% respectively from a year ago.
Tarun Pathak, Analyst, CMR Telecoms Practice said, “The India smartphones market saw the entry of two local vendors amongst the Top 3 positions for the first time, displacing Tier 1 international players. This shows that market dynamics have changed in the India smartphones segment. One of the key reasons for this is that a large number of featurephone users are migrating to entry-level smartphones. A significant proportion of these were already using the devices of local vendors and preferred to continue with a smartphone of the same brand. Thus, local vendors have been able to introduce their new smartphone offerings to this ‘captive’ customer base.”
He further added,” The trend of dominance of the India smartphones market by local vendors is likely to continue during the coming year. It is expected to sustain, till such time as one of the Tier I international players like Nokia, BlackBerry, HTC or Sony Mobiles launch a sustained marketing and promotion drive to regain share or introduce a new, potentially disruptive mobile device technology.”