Arab Today, arab today chinese smartphone vendors dip toes in indian market
Last Updated : GMT 12:26:24
Arab Today, arab today
Arab Today, arab today

Chinese smartphone vendors dip toes in Indian market

Arab Today, arab today

Arab Today, arab today Chinese smartphone vendors dip toes in Indian market

Chinese smartphone
Beijing - XINHUA

As China's smartphone market becomes increasingly saturated, emerging lucrative markets such as India are luring Chinese brands to enter and compete in the new battlefield.

According to Hong Kong-based Counterpoint Technology Market Research, the number of Chinese smartphone brands available in India has jumped from 12 to 57 in two years.

Lenovo, Huawei, Xiaomi, Vivo, Meizu and One Plus have already launched their products in India while LeTV, one of the late comers, also announced its foray into the market in October.

Anshul Gupta, an analyst at the market research firm Gartner, projects that the Indian smartphone market will grow at an annual compound rate of 40 percent in the next two years.

"The availability of affordable smartphones in emerging markets saw consumers upgrade their 'feature phones' to smartphones more quickly because of the small price gap," said Gupta.

Smartphone sales in emerging markets alone increased by 18.4 percent to 259.7 million in the third quarter of 2015, compared with the same period in 2014.

According to the latest figures unveiled by International Data Corporation (IDC), thanks to Motorola's line-up, Lenovo, moved up to fourth place in the Indian market in the third quarter of 2015, owing to a strong 58.6 percent sequential growth.

Lenovo group captured 9.5 percent of the smartphone market driven mainly by Lenovo's K3 note, A6000 plus, and Moto G 3rd Gen. The group also started local manufacturing of its smartphones in India to further strengthen its position in the market.

"E-tailers such as Flipkart, Snapdeal, and Amazon continue to drive shipments of the Chinese vendors, who have been aggressively trying to capture the 4G smartphone market in India," said Karthik J, a senior market analyst at IDC India.

Nonetheless, Chinese brands are facing tough competition with other global brands and local brands such as Micromax, Lava, Intex, Karbonn.

"While we see a large number of Chinese brands in the Indian market now, there's only handfuls that are actually challenging the status quo of the incumbents," said Kiranjeet Kaur, Research Manager of IDC Asia &Pacific. "The biggest challenge is to scale up their offline distribution."

According to Kaur, the local players have a large and wide distribution network and even though there has been a boom in the e-tailer market lately, India still remains a retail dominated market.

Local players can reach people who are located in small towns and are still using low-cost feature phones, and would probably deem Chinese phones as too expensive.

"Average price of smartphones from Chinese vendors is still above $100," said Kaur, "the local brands also have been investing in branding exercises, tying up with movie stars, doing sports sponsorships which has been helping them gain recognition in the Indian market."

"I do see big growth for the Chinese players but I cannot at the moment say that it will lead to big share gain as well. For the reasons mentioned above, the local players do have a strong standing in the Indian market," she added.

"The biggest driver here is the increase in imports tax. As the market is moving towards lower cost phones, margins are getting thinner and any increase in tax makes a big difference and could lead to a big cost advantage," said Kaur.

For the time being, it's still going to be focused on local assembly as most of the component supply chain is still based in China. But she doesn't see it an impossibility that the eventually government introduces some regulations and incentives to move more end-to-end manufacturing to the country.

There is always going to be uncertainty regarding some tax laws but that would not prevent the vendors from claiming a stake in one of the fastest growing smartphone markets now.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese smartphone vendors dip toes in indian market Arab Today, arab today chinese smartphone vendors dip toes in indian market

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese smartphone vendors dip toes in indian market Arab Today, arab today chinese smartphone vendors dip toes in indian market

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 09:56 2017 Friday ,20 October

Privacy Groups Warn of Perils

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday