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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.

6 of 83 comments (clear)

  1. So, essentially by Anonymous Coward · · Score: 5, Insightful

    Chinese smartphone makers now rule the world's largest and the second largest smartphone markets? That is incredible to say the least.

    1. Re:So, essentially by Anonymous Coward · · Score: 5, Interesting

      No cases of malware or spyware has ever been discovered in the large Chinese manufacturer's phones, like Huawei, Xiaomi, Vivo, and Oppo. There have only been accusations, nothing backed up.

      On the other hand, it's been repeatedly shown, and admitted, that American telecom equipment contains back doors. Give that a good think.

  2. Small surprise, considering the price/performance by Mr.+Dollar+Ton · · Score: 3, Insightful

    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?

  3. What about Apple by Tough+Love · · Score: 2

    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.
    1. Re:What about Apple by Tough+Love · · Score: 2

      Not exactly the kind of customers Apple is interested in

      But the Chinese Android manufacturers are very interested. Though it may be obvious, let me spell it out: in technology, market disruption always starts at the low end.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
  4. Clearly Different by tuppe666 · · Score: 2

    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.