Oppo grew 1578% on year to grab third spot with 9% smartphone market share in India: Canalys

NEW DELHI: Chinese handset maker Oppo grew 1578% on year in the fourth quarter of 2016 to reach third spot, grabbing 9% of the India’s overall smartphone market, according to data shared by Singapore-based research firm Canalys.

“Oppo was the best-performing vendor in the top five, shipping 2.6 million units, up from 150,000 a year ago, and a 150% increase from the previous quarter,” the agency said.

“Oppo’s intensive brand-building has paid off. In the past year, it has sponsored popular TV shows, T20 cricket and signed up local celebrities Hrithik Roshan and Sonam Kapoor to build popularity,” said Research Analyst Lucio Chen.

Beyond sponsorships, Oppo has also driven strong channel expansion activities, investing in channel marketing initiatives and securing vital shelf space with local mobile retailers. While this is a capital-intensive approach, the significance of building a brand in India cannot be underestimated, Chen added.

Second-placed Xiaomi’s focus on Indian expansion continued to pay off as it reached the 3.0-million-unit mark, growing by more than 230% year on year.

Lenovo shipped 2.6 million smartphones, a 14% on year decline in the quarter, as compared to 3 million smartphone shipments last year. Lenovo finished fourth, followed by Vivo, which shipped just over 2 million smart phones.

Samsung’s smartphone shipments declined to 6.2 million in the quarter from 7 million shipments in an year earlier period. The Korean major still leads the market with a 22% share.

In the quarter, Indian smart phone vendors were pushed out of the top five as Chinese vendors continued to grab market share with extremely price-competitive devices. Local vendors have also been hit hard by the Indian government’s decision to demonetize the Rs 500 and Rs 1,000 (US$7.30 and US$14.65) banknotes.

“Local brands’ target customers typically buy in cash and from independent retailers. With the short-term liquidity crunch caused by demonetization, these retailers are suffering a slowdown in consumer spending. Local vendors are losing out as retailers look to shift their stock to fast-moving, current devices,” said Canalys Analyst Rushabh Doshi.

“In Q4 2015, Micromax, Intex and Lava took second, third and fifth place, accounting for almost 30% of the market. One year on and all three vendors have dropped out of the top five, with their collective share falling to around 11%,” Doshi added.

Resource: http://telecom.economictimes.indiatimes.com/

Resource: http://grandiose.org.in/