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India Is The World’s Fastest Growing Smartphone Market: Gartner


Smartphone sales in India increased by 166.8% making it the world’s fastest growing smartphone market in the last quarter of 2013, according to Gartner. It also revealed that worldwide, smartphones sales now account for 53.6% of overall mobile phone sales in 2013, exceeding annual sales of feature phones for the first time.

Developing world takes on to smartphones

Smartphones sales grew by more than 50% in Latin America, the Middle East and Africa, Asia-Pacific and Eastern Europe in the fourth quarter of 2013. China also contributed significantly to worldwide smartphone sales as sales grew 86.3% in 2013. Smartphone sales in western markets reduced in Q4 due to weaker demand.

Who is selling more

A total of 967.78 million smartphones were sold in 2013, up 42.3% YoY from 680.11 million smartphone sales in 2012. Samsung continues to be the biggest player with 31% marketshare by selling 299.79 million devices, up from 205.77 million in 2012. However, if you look at Q4 alone, Samsung’s marketshare was slightly lower at 29.5%, down from 31.1% YoY and 32.1% in Q3. The fall in sale of Samsung devices has been attributed to reduced demand in western markets.

Apple has lost marketshare and its sales have increased only marginally despite the launch of iPhone 5s and iPhone 5c in 2013. It’s marketshare is down to 15.6% after selling 150.76 million devices as opposed to a marketshare of 19.1% after selling 130.13 million devices in 2012. In Q4 too Apple’s marketshare reduced to 17.8%, from 20.9% YoY, but it’s worth noting that the company had only 12.1% marketshare in Q3. It had signed deals with NTT DOCOMO in Japan in September 2013, due to which sales of Apple devices increased in the last quarter. It also signed a deal with China Mobile some time in Q4 and the impact of this tie-up should be visible in the first quarter of 2014 according to Gartner.

Huawei and LG both have 4.8% marketshare, but the Chinese company sold 46.61 million smartphones in 2013, while LG sold 46.43 million devices. LG had a marketshare of 3.8% and sold 25.81 million devices last year. Huawei’s sales increased by 85.3% in Q4 due to strong sales in the Middle East and Africa, Asia/Pacific, Latin America and Europe.

Lenovo, which bought Motorola from Google in January this year, had a marketshare of 4.5% and sold 43.9 million devices, up from 3.2% marketshare and 21.7 million sales in 2012. Lenovo saw smartphone sales in 2013 increase by 102.3% and by 63.1% in the Q4. Motorola acquisition will give Lenovo an opportunity to expand within the Americas.

Ideal price point: Gartner reports that sales of high-end devices will be low, while low and mid-range device sales will increase in developing markets. An increasing number of manufacturers will also realign their portfolios to focus on the low-cost smartphone sector. This will lead to a decline in average selling price and a slowdown in revenue growth.

Android dominates

Android marketshare increased to 78.4% from 66.4% YoY by selling 758.72 million devices as opposed to 451.62 million devices in 2012. Sale of iOS devices meanwhile, increased marginally to 150.76 million from 130.13 million, but its marketshare reduced to 15.6 from 19.1% YoY. Microsoft’s marketshare increased to 3.2% from 2.5% YoY, while BlackBerry’s marketshare is down to 1.9 from 5% in 2012.

Overall phone sales

Worldwide mobilephones sales, which includes both smartphone and feature phone sales, increased to 1.81 billion from 1.75 billion YoY. Samsung continued to be the biggest mobilephone company internationally by selling 444.44 million devices. Nokia meanwhile, managed to hold to number two position despite losing marketshare.

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Source: Gartner