India has become second-biggest smartphone market in the world by crossing 220 million active users, surpassing the US market. According to a report by Counterpoint Research, the smartphone shipments in India grew 23.3% to 100 million units during 2015 as compared to 81.1 million in 2014.
Tarun Pathak, a senior analyst at Counterpoint Research, said in a statement, “India has inched past the US to become the second largest smartphone market in terms of active unique smartphone user base in the world with the base crossing 220 million users. This speaks volume for the scale India market provides for any player in the mobile connected ecosystem.”
With a strong expansion of 4G LTE devices, the smartphone shipments saw an increase of 15 percent with 25.3 million units during October-December 2015 quarter compared to 22 million units in 2014. However, it’s concerning that smartphone penetration in India is still below 30 percent of the total population which shows that India still has a long way to go.
“Though India still has a long way to go as the smartphone penetration of the total potential population is still below 30 percent. As a result, India continues to attract new smartphone brands every quarter adding to the more than 150 smartphone brands selling their devices in the country,” the report added.
“Furthermore, government-driven initiatives such as Make in India and Digital India had gained momentum in 2015 to attract more players in the mobile value chain. Almost half of the total mobile phones shipped in India during the quarter were assembled in India, driving the Make in India trend. We estimate this trend to scale even faster and broader in 2016.”
It’s good to know that about 20 mobile phone brands have started assembling components in India showing a success in Prime minister’s “Made in India”. According to the reports, Samsung is still the leader of the overall mobile phone market and smartphone market with a market share of 19.8 percent and 25.7 percent, respectively.
According to the Counterpoint Research, Samsung is the leader of the smartphone market with 28.6 percent share, followed by Micromax (14.3 percent), Lenovo (11.4 percent), Intex (9.6 percent) and Lava (6.8 percent). Samsung also leads the market in terms of total market including both smartphone and feature phones with 23.6 percent, followed by Micromax (13.7 percent), Intex (13 percent), Lava (12.6 percent) and Lenovo (4.8 percent).
Apple also achieved a landmark in India, led by a strong fourth quarter, by crossing two million units in a calendar year for the first time. The Counterpoint also said that Apple commands a 2 percent volume shares of smartphones and the third-largest brand in terms of revenue share.
Counterpoint stated that due the boost in demand for 4G LTE phones is due to the decline in average selling price and the LTE services will get a user base at a much faster rate than that of 3G.
“The Indian smartphone demand grew strongly during the holiday season in the Q4 2015 quarter. However, the consumer demand waned since mid-November leading to smartphone shipments declined 11 percent sequentially. However, LTE shipments grew sequentially, as more than one in two smartphones shipped was LTE capable,” Pavel Naiya, research analyst at Counterpoint Research, said.