China Nibbles at Samsung's Share to Take 50 Percent of India's Smartphone Market: Counterpoint

Advertisement
By Reuters | Updated: 6 January 2017 15:46 IST

Chinese brands took their largest ever slice of the $10-billion Indian smartphone market in late 2016, accounting for more than one in every two phones sold - a growing market share that ate into sales from top-selling Samsung Electronics.

Samsung, the single most popular smartphone brand in India, commanded a roughly 30 percent market share just over a year ago. That slipped to 21 percent in November, according to tech research firm Counterpoint, the last month for which data is available.

Advertisement

Meanwhile - thanks to low cost, improved technology and an advertising blitz - Chinese brands like Oppo, Lenovo, OnePlus, Gionee and Xiaomi took a combined share of over 50 percent, compared to just 19 percent a year ago.

"Chinese brands are offering quality that is at par with Samsung, at a better price," said Manish Khatri, who owns two multi-brand smartphone outlets in Mumbai. "Of every 10 phones I sell, almost six to seven are now Chinese brands."

Advertisement

(Also see: Chinese Vendors Capture 40 Percent of Indian Smartphone Market, Says IDC)

Celebrity endorsements from Bollywood actors like Hrithik Roshan and Ranveer Singh, along with huge sponsorship campaigns by brands such as Oppo and Gionee of the wildly popular Indian Premier League cricket franchise have helped improve perception of Chinese brands - once derided for their low quality.

Advertisement

"In a country like India, there are two religions - one is Bollywood and the second is cricket," said Arvind R Vohra, Gionee's India head, noting that both avenues have helped popularize its brand.

Chinese brand executives said innovative product features such as powerful selfie cameras with flash, quicker charging and longer-lasting batteries have also helped them thrive in India, one of the world's biggest and fastest growing smartphone markets.

Advertisement

In the large and ultra-competitive $120 to $440 mid-market smartphone segment, Chinese vendors have more than doubled their market share to 68 percent, while Samsung has lost 14 percentage points since November 2015, according to Counterpoint.

"Being a global company is Samsung's biggest curse," says Neil Shah of Counterpoint, adding Samsung cannot compete on price like their Chinese rivals, who are focused more on low-cost markets like China, India and Indonesia.

(Also see: Xiaomi India Claims Revenue Topped $1 Billion in 2016)

Shah said Chinese vendors' access to low-cost components and their expertise in designing metal casing for cheap phones has let brands like Oppo, OnePlus and Lenovo offer better quality products than Samsung, which uses plastic for its cheapest models.

Adding to Samsung's woes last year was the arrival of billionaire Mukesh Ambani's new telecom venture Jio, with heavily subsidised handsets to get customers on its 4G network.

Dyaneshwar Sarde, a 33-year-old Indian farmer who earlier used a Samsung device, said he wanted to buy a 4G smartphone to use Reliance Jio.

"Samsung phones were comparatively expensive, so I ended up buying a Lenovo a friend recommended."

India's home-grown brands such as Micromax, Lava and Karbonn are feeling the heat even more, according to Counterpoint, with their total market share having dropped to less than 20 percent from over 40 percent last year.

© Thomson Reuters 2017

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. iPhone 18 Pro Max Roundup: Everything We Know Ahead of Launch
  2. iPhone 18 Pro Roundup: Expected Price, Launch Date, Features and More
  3. TCL P80 Series, Tab A1 Series With NXTPAPER Displays Unveiled at IFA 2026
  1. IFA 2026: Lenovo Unveiled New IdeaPad, Yoga and ThinkBook Laptops
  2. IFA 2026: Nvidia RTX Spark PCs, Local AI Tools Announced With October Launch Planned
  3. WhatsApp Reportedly Rolling Out Third-Party AI Agent Chats to Android Users
  4. Luna Band Now Available Globally: Check Price in India, Specifications and Features
  5. Pocket Bitcoin Data Breach Exposes Personal and Financial Information of 5,411 Customers
  6. Google Pixel Watch 5 Stephen Curry Special Edition Goes on Sale: Price, Features and More
  7. IFA 2026: Noise Master Buds Open With Sound by Bose Technology Unveiled
  8. Binance Warns of Phishing Scam Targeting Crypto Users With Fake Account Security Alerts
  9. Oppo Find X10 Pro Max, Find X10 India Launch Seems Imminent as Phones Appear on Certification Site
  10. Xiaomi Smart Band 11 Active Launched With Up to 21 Days of Battery Life; Smart Band 11 Price, Features Revealed
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.