Local Smartphone Vendors Outperforming Foreign Companies in the Indian Market

By Tarun Iyer
published

According to data compiled by the IDC, foreign vendors have been outperformed by local companies in the rapidly expanding Indian smartphone market.

Data compiled by the International Data Corporation (IDC) has indicated that although Samsung ranked as the top smartphone vendor in India during Q1 2013 with a 32.7 percent share, local smartphone vendors have outperformed most foreign companies and altogether have accounted for over 30 percent of the overall smartphone market.

More specifically, the IDC data indicates that Samsung was closely followed by Indian-based Micromax share and Karbonn Mobiles that have a respective market share of 19 percent and 11 percent.

Additionally, DigiTimes’ industry sources have suggested that two other local brands, Spice and Lava, are emerging as “first-tier vendors” and have attributed this to a successful push through retail channels with “aggressive pricing” with a lesser reliance on subsidized phone deals offered by network operators.

The growth in smartphone popularity and market penetration in the Indian market has been characterized by the IDC as “stupendous.” While sales of feature phones increased by 2.4 percent from Q1 2013, smartphone sales grew by 167 percent to 9.4 million units and accounted for over 50 percent of overall mobile phone sales.

Tarun Iyer
4 Comments Comment from the forums
  • abhinav_mall
    There is no subsidy offered by network operators for high end phones like iPhones, etc. The consumer has to pay full price (nealy $1200 for latest iphone) even if it comes bundled with some data plan.
    Moreover the data plan limitations and poor speeds make these high end stand at par with their local cheaper counterparts. (Broadband == 256kbps and highest speed mobile network don't offer more than 1Mbps that too at a monthly cap of 2-3 Gb)
    Reply
  • varun706
    This comes across as a not so exciting news to me. The local vendors are sub standard.
    Their products are a joke. Actually smartphones in Indian scenario is a joke. We don't even get a proper signal reception but we get all the latest phones, all 4 months late, cost a leg and arm.....and no 3g heck no proper 2g. Most people buy smartphones for bragging rights. No wifi, no NFC, no goddamn 4G LTE.

    All of this is because people are stubborn, they don't want to upgrade. All they do is chat around, pass gossips, talk about some scumbag politician, crap government.

    Sigh...........India is trying to copy others and failing at it miserably. India will never be a developed country. Research says India is a country full of youth. But in reality, India is a country full of youth with contempt rule by really old dilapidated but draconian troglodytes.
    Reply
  • lockhrt999
    Micromax share rose up to 23.5% in Q2 from 19% of Q1.
    Its latest models are good enough if not at par with Nokia or Sony in terms of built quality. Its built quality is very much same as Samsung. I wouldn't say same about Karbonn though. Its name has two spelling mistakes... nuff said.
    Reply
  • ashkal
    Local are offering large range of Smart phones of everybody, and giving stiff competetions for MNCs in price and quality. India market is price conscious and new tech penetration is slow. But Local SPhones doing good for Indians.
    Reply