Despite the federal government’s steady push to lend a hand home smartphone producers, China-based distributors are thriving and their collective marketplace proportion has reached a large 53 p.c in 2017 from 34 p.c a 12 months in the past, International Data Corporation (IDC) has stated.
“The untapped demand in the lower-tier cities remains the key attraction for China-based brands to explore the growth trajectory in India,” stated Jaipal Singh, Senior Market Analyst, IDC India.
“Their strength in their home market of China and weakening position of local players has helped some of these China-based players to solidify their operations in India,” he added.
Finance Minister Arun Jaitley in the Union Budget announced a hike in customs responsibility on cell phones to 20 p.c from 15 p.c.
“Customs duty on import of mobile phone parts will be increased to 20 percent from the existing 15 percent. This will boost jobs in the smartphone sector in India,” Jaitley stated throughout his speech.
According to IDC’s Quarterly Mobile Phone Tracker, the Indian smartphone marketplace witnessed a wholesome 14 p.c annual expansion with a complete cargo of 124 million devices in 2017 — making it the quickest rising marketplace among the highest 20 smartphone markets globally.
The marketplace resumed its double-digit expansion after a short lived slowdown in 2016 led to by way of elements corresponding to demonetisation and a scarcity of smartphone elements.
This contrasts with China, the arena’s greatest smartphone marketplace that noticed its first decline this 12 months, whilst the United States was once fairly flat.
When it involves characteristic telephones, 2017 was once a phenomenal 12 months for this class because it witnessed a 17 p.c annual expansion after declining for 3 consecutive years.
While characteristic telephones stay related to a big client base in India, the Indian telecom operator Reliance Jio shipped large shipments of 4G enabled characteristic telephones taking the management place in its maiden quarter in this class, IDC stated.
This resulted in a complete of 164 million characteristic telephone shipments in 2017 from 140 million a 12 months in the past.
“Xiaomi taking a lead over Samsung in the smartphone marketplace and Reliance Jio rising because the main characteristic telephone corporate in India have been the 2 key highlights of the closing quarter of 2017,” stated Upasana Joshi, Senior Market Analyst, IDC India.