Samsung continues to lead the 4G smart-phone market followed by Lenovo and Reliance Jio

According to International Data Corporation's (IDC) Quarterly Mobile Phone Tracker, Q1 of 2016 saw smart-phone shipment to the tune of 23.5 million units.
Reliance Jio, India

Reliance Jio replaced Lava as the fifth largest smartphone vendor with huge shipments of 4G devices.

According to International Data Corporation’s (IDC) Quarterly Mobile Phone Tracker, Q1 of 2016 saw smart-phone shipment to the tune of 23.5 million units, having registered a 5.2 per cent growth over the same period in 2015. However, dipping consequently for two quarters, the shipments shrank to over 8 per cent over Q4 2015, the statement said. On the other hand, new entrants like Reliance Jio grew sharply over previous quarter as they prepare before the official launch.

“The first quarter of the year is usually expected to be slow after the festive season in the last quarter of the year. However, the contraction in Q1 2016 is mainly propelled by the decline in shipments from all the Top 5 smartphone vendors of previous quarter. Shipments of key Indian vendors Micromax, Intex and Lava put together dropped 20.4 percent sequentially as they struggled to push their inventories into the market,” said Karthik J, Senior Market Analyst, Client Devices.

Le1S, the newly-launched smart-phone by LeEco, contributed to majority of the vendor’s shipments in Q1 2016, while Chinese vendors like Oppo, Xiaomi, Vivo and Coolpad gained traction in the first quarter of the year with new product launches, aggressive marketing spends and expanding their channel presence, Karthik added.

The report also states that as ‘Make in India’ campaign continued to promote local manufacturing of smart-phones in India, more than 25 vendors have local assembly lines in the country. That number indicates that more than two-thirds of the smart-phones shipped in Q1 2016 were assembled within the country. Owing to the encouraging support from Central and State Governments, many vendors are likely to start manufacturing phone components such as batteries, chargers and data cables.

4G based smartphones shipments clocked 15.4 million units in Q1 2016, which has grown more than 6 times over the same period last year.

“4G based device shipments accounted for 65.5 percent of overall smartphone shipments in Q1 2016 driven primarily by Samsung’s J-series models. This sharp rise in the share of 4G smartphone is due to the cohesive move from the entire ecosystem,” said Jaipal Singh, Market Analyst, Client Devices.

“Qualcomm and Samsung are spearheading this growth while MediaTek along with Chinese and Indian vendors are driving the 4G volume in India. Adding to that, telecom players are playing a pivotal role in setting up the infrastructure and promoting 4G leading to wider awareness of this next gen technology in India,” added Singh.

Smartphone Vendor Highlights:
While Samsung continued to dominate the Indian market with 26.6 per cent share, Micromax retained second position in Q1 2016 with 6.9 per cent growth over the same period last year. Intex regained 3rd position, Lenovo (including Motorola) slipped to fourth position as its shipments declined 35.8 per cent.

Reliance Jio replaced Lava as the fifth largest smartphone vendor with huge shipments of 4G devices.

IDC India Forecast
Despite the slow start of first quarter of 2016, IDC expects the smartphone market to gain the momentum in the upcoming quarters. “This year is expected to unfold many transitional phases in the mobile phone ecosystem as more vendors begin local assembling/manufacturing and an increasing trend for higher data consumption owing to affordable 4G devices and data plans”, says Navkendar Singh, Senior Research Manager, IDC India. Smartphone penetration is still at less than 30 percent in the country which makes it the one of the most attractive markets in the world. "While the new entrants continue to make the Indian mobile market more competitive, vendors differentiating themselves with value added services could be expected in this year,” added Singh.

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