Smartphones' shipment set to overtake feature phones next month

With 24.6% share, Samsung leads Indian handset market

The increasing availability, as well as falling prices, of smartphones has pushed up shipments of the product. Out of the total 56.6 million units of phones shipped during the April-June 2015 period, 24.4 million units, or 43 per cent, were smartphones, with the rest being feature phones.

During January-March 2015, the share of smartphones was 37 per cent.

Given the current trend, experts say smartphone sales would overtake feature phones by September 2015.

According to a report by market research firm CyberMedia Research (CMR), the overall mobile phones market in India grew seven per cent in the second quarter of 2015 (calendar year). In sharp contrast, the growth in the smartphones category during this period was 25 per cent.

Though Samsung and Micromax continue to lead in the mobile handset market in India, the two have lost market share in the smartphones segment. The market shares of Samsung and Micromax went down to 24.6 per cent and 14.8 per cent, respectively, from 27.9 per cent and 16.2 per cent a quarter ago. But, the companies have managed to raise overall market share during the quarter.

“While Samsung’s share continues to be ahead of its nearest rival, there could be some advances at the second and third spot, primarily affecting Micromax if it does not implement a more robust marketing strategy. Attempts to imitate niche Chinese players haven’t worked well in favour of Micromax,” said Faisal Kawoosa, lead analyst, CMR Telecoms Practice.

Out of the total handsets shipped in the second quarter of 2015, 24.8 per cent were manufactured and / or assembled domestically compared to 19.9 per cent in the previous quarter. However, the growing presence of Chinese brands in the smartphones category is a major concern, the report said.

“The contribution of Chinese brands grew 97 per cent year-on-year during 2Q CY2015 as against 48 per cent for Indian brands within the smartphones segment.”

While more number of smartphone venders in the country are opting for online-only sales route to capitalise on the growing e-commerce footprint in the remote areas, analysts like Karn Chauhan from CMR's India Telecoms Practice point out its downside. "Players like Intex have believed in reaching out to first time Smartphone users, and this strategy has paid off very well for them, giving them entry into the Top 3 list," he said.