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Chinese smartphone brand shipments grew 17% QoQ in Q2 2017: IDC

Chinese smartphone shipments accounted for more than half (54% ) of the overall Indian market during Q2 2017, with shipments growing 16.9% QoQ, research firm IDC said in its Quarterly Mobile Phone Tracker report. In the previous quarter, Chinese smartphone brands held 51.4% of the Indian market.

Chinese brands have been continuously gaining market share in the Indian smartphone market. The completion was felt on the domestic Indian brands: the share of smartphone shipments from domestic vendors decreased to 13.5% during last quarter from 40.5% in Q1 2016. However, in Q2 2017, domestic brands increased its market share to 15%, growing at 18% QoQ, according to IDC.

Overall, the Indian smartphone market shipped 29 million units during Q2 2017, up by 3.7% QoQ and up marginally by 1.6% on a YoY basis.

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Impact of GST improved in Q3 2017

The impact of GST was initially felt during Q2 2017 on the shipment side as vendors took time to upgrade to the new tax regime, but quickly recovered during the third quarter of 2017, IDC said. “Offline channels have already cleared the old stocks, eTailers are getting ready for online festivals, and vendors are set to launch new models in the Diwali festive period,” the research firm added.

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Indian vendors are focusing on launching new 4G portfolios while Chinese brands are focusing on the sub-US$150 segment for the upcoming festive season. “Indian vendors are putting all their efforts and second half of year will be crucial, either it will see a revival of Indian vendors or emergence of new dominance in the sub-$150 segment from China based vendors,” IDC said in its report.

Shipment share of vendors in Q2 2017

  • Samsung shipments fell by 4% YoY but took the lead spot with a 24% market share as of Q2 2017. The company’s shipments fell due to rising competition in the mid-tier segment mostly from cheaper Chinese brands.
  •  Xiaomi secured 2nd place (17% share) with shipments growing 25% QoQ. Xiaomi also led the online shipments segment with a 40.6% percent share.  Xiaomi’s offline channel expansion with Mi Home helped the company “triple its offline shipments in the second quarter of the year,” IDC said.
  • Vivo held 3rd place (13% share) in Q2 2017 with shipments growing 26% QoQ.
  • OPPO held the 4th position during the quarter with an 8% market share. The brand’s shipments declined by 13% QoQ. It took over Lenovo which help the 4th position last quarter.
  • Lenovo (including Motorola) fell to 5th position (7% share) as its shipments declined 25 percent QoQ. However, its Motorola brand shipments were up by 33.7% QoQ.

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