Chinese smartphone manufacturers are edging out competitors in India: report
Jul 29, 2019
Chinese smartphone manufacturers continued to see explosive growth in India during the second quarter, edging out international competitors as they battle for market share in the world’s second-most populated country, according to data from research firm Canalys.
Why it matters: Chinese smartphone makers are looking abroad to boost sales while shipments in their home market slow as a result of high rates of smartphone penetration and a slowing economy.
- Smartphone shipments were down 6% year on year in China during the first half of 2019, according to CINNO Research.
- Shipments hit a five-year low in 2018, falling 14% compared to the previous year.
Details: Four of the top five most popular smartphone brands in India are Chinese. Xiaomi takes the top spot, controlling nearly a third of the Indian market, up 4% year on year, according to the Canalys report released on Monday.
- Vivo increased its market share to 18% from 11% a year ago. The company sold a total of 5.8 million phones in Q2, up 60%.
- Realme, an Oppo sub-brand, saw its deliveries increase by 2 million units, up 60% compared to the same period last year.
- Meanwhile, South Korean smartphone giant Samsung’s market share shrank by more than a quarter, according to Canalys. Shipments were down by 2.6 million compared to a year ago.
“[Vivo’s] current trajectory would see it displace Samsung by the end of 2019, dealing a major blow to the Korean vendor.”
—Jin Shengtao, Canalys analyst
Context: Chinese smartphone makers are increasingly relying on international sales in order to offset stalling shipments in China, the world’s largest smartphone market.
- In the first quarter, markets outside China accounted for almost 40% of Xiaomi’s total revenue.
- Chinese smartphone makers are diversifying outside of their core offerings to weather the slowdown. Xiaomi has invested heavily in a smart home ecosystem.
- Vivo last year followed suit, launching Jovi IoT.