Share of Chinese smartphone brands in the Indian market slips to 72%: Counterpoint Research
Chinese smartphone brands such as Xiaomi, Oppo, Vivo and Realme are the fastest growing brands in the world but their share in the Indian market declined during the April-June quarter. India’s smartphone shipments declined by 51% year-on-year to list over 18 million units in the June quarter.
The share of the Chinese smartphone brands fell to 72 per cent from 81 per cent due to the nationwide lockdown imposed by the Indian government to fight the COVID-19 pandemic.
Last month, the India-China border dispute raised and because of this anti-china sentiments grew in the country and due to this, the Indian government banned the 50 Chinese apps besides this, the Indian government also delayed the goods from China amid extra scrutiny. This is also another reason for the decline rate of Chinese smartphone brands in the Indian market.
Shilpi Jain, a Research Analyst at Counterpoint Research, said that “…in the era of globalisation, it is difficult to label a product based on country origin as components are being sourced from many different countries. This development has given a window of opportunity for brands like Samsung and local Indian brands such as Micromax and Lava, to recapture market share.”
In the June quarter, the share of the different smartphone brands in the Indian market is led by the Xiaomi which is 29% followed by the Samsung which is 26% and after that Vivo comes in the third-place capture 17% of market share and Realme (11%), Oppo (9%) and others (8%).
But, if we see the data of the March quarter, Xiaomi occupies the large share in the Indian market which is around 30% followed by Vivo (17%), Samsung (16%), Realme (14%) and Oppo (12%). Samsung the non-Chinese brand have got third place in the March quarter which is 16% but it regained the second position (26%) in the June quarter.
The COVID-19 pandemic wiped out almost 40 days of production as well as the sales of smartphones due to the nationwide lockdown said by the Prachir Singh, Senior Research Analyst at Counterpoint Research. Furthermore, he also said that “On the supply side, the factories were shut down in April and started operating in May, which resulted in supply shortages for some manufacturers.”
In this hard times of COVID-19, people tried to save their money by reducing discretionary purchases and because of this the phone market is badly affected in India which is declined by a massive 68% year-on-year in the June 2020 quarter.