Indian smartphones shipment grows in Q1 2016

The Dollar Business Bureau

The “Make in India” smartphones have come of age and are influencing the volume of shipments in 2016.

According to India Mobile Handset report by CyberMedia Research (CMR) the “Made in India” handsets have contributed 67 percent of the total shipment during the first quarter of the current year 2016.

India has shipped a total of 52.8 million headsets as against 55.4 million in the first quarter of 2016, thus registering a decline of 4 percent on a year on year basis.

However, during this period, the contribution of global brands as well as Chinese brands declined. What needs to be noted is that CMR has designated “Make in India” brands as all domestic brands with Samsung’s domestic production units too falling under the section.

Faisal Kawoosa, lead analyst with CMR said that it is the first time they are seeing Rs10,000 – Rs 15,000 price bands being shipped the maximum. Normally the maximum shipment is seen in Rs 6000-8000 price band.

Around 22 percent of these shipments have been contributed by Rs 10,000 – Rs 15,000 price bracket.

The increase is largely due to the introduction of shipment by LeEco, Chinese smartphone maker and also the launch of handsets by Oppo, Lenovo, LG, Micromax, Intex, Panasonic, Vivo and Lyf (RJio) in the Rs. 10,000 - Rs. 15,000 price bands.

The average selling price of the smartphones has also seen an increase. In 2015’s fourth quarter the average selling price of the smartphone is Rs 12,285. However, the selling price of the same during the first quarter of 2016 was Rs 12,983. But if we consider the average selling price in the first quarter of 2015, it was only Rs 10,364.

When the global players are focusing largely on 4G LTE technology, the domestic players still feel that they can earn profits in the 3G technology.

Samsung, Micromax and Intex remain the top three players in the overall India Market.

Krishan Mukherjee, an analyst at CMR said that they are waiting to see the performance of Micromax in the third quarter after modifying its brand logo and creating a new approach to the sales and marketing strategy.