Q4 2019: Four in Top Five Smartphone Brands are China-based

0
Advertisement

Share and Enjoy !

  • A recent report published by Counterpoint mentioned that India surpassed the USA to become the second largest smartphone market
  • Realme, Vivo, Asus and Oneplus were the fastest-growing smartphone brands on an annual basis

The India smartphone market surpassed the USA for the first time on an annual level, becoming the second-largest smartphone market globally, reaching 158 million shipments in 2019 with seven per cent YoY growth, according to the latest research from Counterpoint’s Market Monitor service. This, as Counterpoint explained, was due to the growth of the mid-tier segment where Chinese brands aggressively introduced many flagship-grade features and capabilities to capture demand coming from users looking to upgrade from their first or second smartphone.

“Although the rate of growth for the smartphone market was only single digit for the first time on an annual basis, India is underpenetrated relative to many other markets; 4G penetration among subscribers being around 55 per cent. Going forward, we expect this demand to grow further due to the ongoing transition from feature phones to smartphones and progressive diffusion of key smartphone features to the entry-level price tier as a result of hyper-competition among multiple players. We further expect brands to have multi-tier strategies involving partnerships in the mobile ecosystem from hardware, software and services, thus creating opportunities within different segments like entertainment, gaming, financial services and more,” stated Tarun Pathak, associate director.

“Additionally, the online channels became the preferred selling platforms to introduce these products faster into the market,” read Counterpoint’s report.

Xiaomi continues to capture the number one position for the second successive year

Xiaomi, with 27 per cent, share during Q4 2019, in the smartphone market, continued to capture the number one position for the second successive year. Realme (255 per cent), Vivo (76 per cent), Asus (67 per cent) and OnePlus (29 per cent) were the fastest-growing smartphone brands on an annual basis. The combined share of the top five smartphone brands (84 per cent) reached the highest ever level.

“Chinese brands’ share hit a record 72 per cent for 2019 compared to 60 per cent a year ago. During 2019 we have seen all major Chinese players expanding their footprint in offline and online channels to gain market share. For example, Xiaomi, realme, and OnePlus have increased their offline points of sale, while brands like Vivo have expanded their online reach with Z and U series. 2019 also marked the fifth anniversary in India for some OEMs. Several have seen significant growth from their first full year of operation. For example, over the past four years, Xiaomi, Vivo, and OnePlus have grown 15x, 24x, and 18x respectively. This highlights that OEMs are mature enough to capture the next wave of growth and further expand their operations in India,” added Anshika Jain, research analyst at Counterpoint Research.

“Although the rate of growth for the smartphone market was only single digit for the first time on an annual basis, India is underpenetrated relative to many other markets; 4G penetration among subscribers being around 55%. Going forward, we expect this demand to grow further due to the ongoing transition from feature phones to smartphones and progressive diffusion of key smartphone features to the entry-level price tier as a result of hyper-competition among multiple players. We further expect brands to have multi-tier strategies involving partnerships in the mobile ecosystem from hardware, software and services, thus creating opportunities within different segments like entertainment, gaming, financial services and more,” added Pathak.

Share and Enjoy !

LEAVE A REPLY

Please enter your comment!
Please enter your name here