|
|
|
88 smartphone brands fight for mere 0.3% market share in India
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 18 Feb, 2019
While the top five smartphone brands currently enjoy a market share
exceeding 75 per cent in India, whatever is left is now being shared by
over 88 smartphone brands -- leaving a mere 0.3 per cent market share
for each player.
Players like Panasonic and Videocon are among
those 88 smartphone brands sharing the revenue of nearly Rs 43,560 crore
-- or Rs 475 crore revenue per brand (on average).
On the other
hand, Samsung alone posted sales of over Rs 37,000 crore for its mobile
phone business in India in the financial year 2018, followed by arch
rival Xiaomi at nearly Rs 23,000 crore.
Oppo Mobiles registered nearly Rs 12,000 crore in revenue while Vivo crossed Rs 11,000 crore in the FY 2018.
The
big question is: How many of these 88 brands will be able to survive
the hyper-competitive and highly price-conscious Indian market?
"As
a result of the increased consolidation among the top five smartphone
brands, the available potential sphere of play for other smartphone
players has significantly decreased," said Prabhu Ram, Head-Industry
Intelligence Group (IIG) at the market research firm CyberMedia Research
(CMR).
Over the past two years, feature phone to smartphones upgrade has not picked up as anticipated.
"This
was primarily due to the spike in refurbished phones/second hand phone
market, along with the rapid uptake of 4G feature phones. Coupled with
this, the lack of smartphone offerings providing optimal experience
under sub-Rs 6,000, is also affecting the upgrades," Ram told IANS.
Amid
massive investment in retail stores, hiring more staff and increasing
ad spends as users are spoilt for choices, the pinch would soon affect
many of those 88 vendors sooner than later, and most will either shut
shops or enter newer businesses.
However, for Chinese brands with
deep pockets and a stagnating market back home, India would continue to
remain a attractive bet.
"They can afford to bleed, and any
profit would be welcome. We believe they would continue to fight in the
market," said Swati Kalia, an analyst at IIG, CMR.
The smartphone
market in India grew 14.5 per cent in 2018 with the highest-ever
shipments of 142.3 million units, according to the International Data
Corporation (IDC).
Xiaomi with 28.9 market share shipped 41.1
million units while Samsung with 22.4 per cent market share shipped 31.9
million in FY 2018.
Vivo shipped 14.2 million units with 10 per
cent market share while OPPO shipped 10.2 million units and captured 7.2
per cent market share.
In such a scenario, the road ahead only gets tougher for the rest of the players.
"For
large consumer-durable conglomerates, including the likes of Panasonic
and Videocon, it makes more sense to look at broader synergies available
from new blue sky opportunities such as Internet of Things (IoT) and
the connected home," noted Amit Sharma, another Analyst at IIG, CMR.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|