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Two-thirds of India's Smartphone Market, the Second Largest in the World, is Now Run by Chinese Handset Makers (venturebeat.com)
India's smartphone market, which is the second largest in the world (and one of the few markets that continues to show strong growth each quarter), is currently a key battleground for a number of phone makers from China, Taiwan, and South Korea. And increasingly, Chinese phone makers are winning. From a report: Leading the charge is Xiaomi, which last year ended Samsung's five-year-streak as the top phone vendor in the nation. The period between April and June of this year was the fourth consecutive quarter for Xiaomi as the top vendor in India, according to IDC. Xiaomi (29.7 percent market share as of Q2) has aggressively undercut the offerings of its rivals by selling inexpensive but high-quality smartphones in India. A spokesperson for the company said that India is currently its most important market.
In the second quarter of this year, four of the top five smartphone makers were Chinese, according to IDC. In addition to Xiaomi, that number includes Oppo (7.6 percent market share), Vivo (12.6 percent), and Transsion (5 percent). Together with other Chinese phone makers such as Lenovo, the group held two-thirds of the local smartphone market in the second quarter, IDC said in a report published last month. Less than three years ago, the aggregate market share of these companies was under 15 percent in India. [...] Indian smartphone makers Micromax, Karbonn Mobile, Lava, and others together held about 46 percent of the market in early 2016. Per the report, Chinese players were originally the design and hardware (ODM) partners of Indian smartphone vendors. They saw an opportunity in India, and cut the middlemen -- Indian vendors -- and started selling phones themselves. Their offerings were better and more cost-effective. Interestingly, even in the premium smartphone segment -- phones priced at $400 or higher -- OnePlus, a Chinese phone manufacturer, outperformed Samsung and Apple in India in the most recent quarter.
In the second quarter of this year, four of the top five smartphone makers were Chinese, according to IDC. In addition to Xiaomi, that number includes Oppo (7.6 percent market share), Vivo (12.6 percent), and Transsion (5 percent). Together with other Chinese phone makers such as Lenovo, the group held two-thirds of the local smartphone market in the second quarter, IDC said in a report published last month. Less than three years ago, the aggregate market share of these companies was under 15 percent in India. [...] Indian smartphone makers Micromax, Karbonn Mobile, Lava, and others together held about 46 percent of the market in early 2016. Per the report, Chinese players were originally the design and hardware (ODM) partners of Indian smartphone vendors. They saw an opportunity in India, and cut the middlemen -- Indian vendors -- and started selling phones themselves. Their offerings were better and more cost-effective. Interestingly, even in the premium smartphone segment -- phones priced at $400 or higher -- OnePlus, a Chinese phone manufacturer, outperformed Samsung and Apple in India in the most recent quarter.
Chinese smartphone makers now rule the world's largest and the second largest smartphone markets? That is incredible to say the least.
I had a Xiaomi 3S for two years, it is still a great phone, I've strapped it to the dog harness for GPS and telemetry when we're in the woods. I moved on to Note 5, also a great phone. Bonus: both are completely open handsets, no hackery to unlock and root, all kinds of roms available.
Why would I ever look at a walled-garden or a locked phone where I'm getting a lot less but it costs three times more?
What about Apple? Apple’s marketshare in India continues to fall as it hits 1% in Q2
Whoops, that's not good, in the soon-to-be world's most populous nation.
When all you have is a hammer, every problem starts to look like a thumb.
iPhones are too expensive for the mass market in India, due to huge tariffs.
When you start with a higher price the price moves even higher.
Chinese smartphone makers are succeeding because they are focusing on marketshare only. While component makers understand this an extract profits from the underlying tech these devices are based on. That's the reason why Samsung and Sony make a lot more in semiconductors and sensors than smartphones.
Huawei is the only Chinese company that can put up a fight in that sense.
:. Ultimate Control Dedicated/VM Servers
So why not dump them on to 1.324 billion customers nation?! Huawei and Xiaomi must be raking in tons of money while trumpeting their noses at Washington and Pentagon.
Senior veep Wang Xiang said it was developing US-specific smartphone models with a 2019 launch in mind. It is currently flush with Money from its IPO. The phone in my pocket is a Mi Max 2.
Sadly the Apple's of the world would rather meet their margins then make a cheaper phone. They loose in countries where the people make wiser decisions on buying technology based on what their needs and wallet can afford. Not because it has a fruit on the back of them. People in India are rather agnostic to what brand they buy, just as long as it works.
Better value phones with compelling reasons to buy, real innovation and Government's/ Media that is not pro-Apple. Actual average costs of phones is being driven upwards, by great value high end phones like the Pocophone F1, and an exciting mid-range market that does more. Apple is fighting back with an LCD model that I suspect gives good margins to vendors, but worryingly for them Chinese companies other than Apple are increasingly cutting these middle men out. I don't believe that they are agnostic about brand, its just Apple as a boutique brand does not have the same draw.
I don't know about "subtext", but the text is actually saying something a bit different, that is, that the Chinese makers have made smart partnerships that allowed them to win market share, and that includes making the smartphones in India:
In addition to expanding their retail presence in the nation, they have made major investments in local manufacturing and assembly, helping to create new jobs for Indians and opportunities for small and medium businesses... Currently over 95 percent of Xiaomi smartphones sold in India are made in India
Part of it isn't surprising in a general sense, labor costs in China have been rising consistently (https://i.imgur.com/17xTNTc.png). But the part where they rely on local marketing and logistics expertise from nimbler companies is interesting and unique. Definitely not what Apple is doing in China, for example. It is interesting how this will play out when these manufacturers become global brands. The first generation blindly followed the American way of marketing, but the second and the third one may not. And it is kind of beside the point to ask "what about the domestic makers", given the statistic about the % of phones made by a China brand, but in India.
The big takeaway for all failed parties, be that Indian, Taiwanese, Korean or US should be that customer satisfaction is most important, and where it is tied not to the "brand", but to the actual phone features, as it should be in a truly competitive market, those that identify precisely what it means and deliver it, win.
Apple isn't doing well in China either.
Having looked at the figures. I was surprised Apple is doing so well at 8%...clearly pandering to the Chinese Government is still profitable. Samsung are being demolished...and are desperate for a new strategy. Unlike Apple they are not a Chinese manufacturer. If there is news with China and Apple its they are not kicking butts and taking names. Apple only produce phones once a year, and that will hurt them the rest of the year. The fact it is only .3 percent of total market share and less than .1 to them shows that they have pretty flat growth, but are in the Game. They have a new strategy of producing a cheaper(for vendors) LCD dual sim version as a market.
Its clearly a different market from India, and Apple is not in the same position of being a blip in marketshare.
Google does lots and lots of evil. And China is the Evil Empire. The two are made for each other.
Corporatism != Free Market
Weird how that's a truism yet the iPod and iPhone were decried for their cost when they were released.
Except the Mp3 model was a disruptive product, that was significantly better than anything before, well executed against smaller competitors, copying their established interface in a market of fanatics with Media backing, and had a great store in itunes, with amazing marketing; they are a Trillion Dollar company because of its evolution. Snartphones are an established market where smartphones have better value, more innovative products, without the fanatics and Media backing. They have a worse store, running arguably worse OS; worryingly Apples only Unique selling point is IOS. They even get in trouble with consumer groups for putting old hardware in their fixed iPhones, their brand power and halo effect are ineffective, they might even care that Apples phones are produced by rioting workers and children...but worst of all they do not have Monopoly power, without any ground braking innovation. They are going to try with an LCD dual sim phone...and I am not betting against them.
They do not have to work with Trump, The carriers have the power in the US. Chinese companies are already looking at the US with greedy eyes, and are already stating they are interested in entering the market. Xiaomi Senior Vice President Wang Xiang is confident that his company will be able to enter the US market in 2019. In context of this thread they already took India by storm.
Google does lots and lots of evil. And China is the Evil Empire. The two are made for each other.
Ironically Google effectively shut down its Chinese operations after it discovered a cyberattack from within the country that targeted it and dozens of other companies. And while investigating the attack, Google found that the Gmail accounts of a number of Chinese human-rights activists had been hacked. It expected Microsoft and Apple to follow suit...but well money. At least Apple/Microsoft is there to actively censoring for the Chinese Government...because blood money.
Since the 1860 end of the opium wars. Back then, competition meant they were forced to import everything from Europe with military intervention if sales dropped.
Are crafted by Chinese sympathizers. This story is designed to convince folks to get Chinese phones because it seems like theyâ(TM)ll be the clear winners and no one wants a loser phone.
Apple is working on the India issue, where do you think those used iPhones you sell back to apple go? They are going to start producing in India.
I don't think you realise that Apple are a Chinese Manufacture. Ironically you failed to read the article; 95% of phones sold in India by Xiaomi are manufactured in India. India has made it clear they do not want to be a dumping ground for Apples old phones...and at 1% who wants Apple's Loser Phone.
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Why not only choose between Samsung and Apple. More would confuse the people, right? /s
Don't fight for your country, if your country does not fight for you.