With affordable handsets and the concentration of 4G Services India is soon going to overtake US to become the world’s largest Smartphone market next only to China.
China, of course, grabs the first spot.
After a shaky start in the year 2017 the Smartphone market has recovered very fast with the shipments growing considerably in the third quarter. They have been reached to around 40 million units.
India is the second most populous country in the world and as the use of Smartphone gets popular and even more, the reach of smart phone users is going to reach around 300 million users.
Some data here will help get a clearer picture of the rise of the mobile market
Some stats on India’s Booming Smartphone market-
Low Smartphone penetration or the 4G are the key drivers. The increased network coverage had contributed well to India’s ranking and helped it to surge ahead.
There are around 100 mobile device brands sold in India with more vendors adding constantly in the successive quarters.
India has a complex channel landscape but with low barrier to entry.
Which are hot brands which are contributing to the recent spurt in the Smartphone Industry?
Samsung and Xiaomi top the charts which together contribute to around 45 percent of the market in India.
The reasons for the rise
After a comparatively low confident start after the GST the market started showing signs of a revival in the month of July to September.
The new rules were immediately implemented with the economy showing strong signs of a bounce back in the second quarter of the year 2017.
The surge in the imports in the September Quarter was not due to a sign of the consumption boom but a reaction of the changing market dynamics which were affected by various economic factors and the dynamic changes in the government policies.
After the introduction of the GST MASSIVE DE-STOCKING of the inventory was carried out during the months of May and June.
Eventually, the vendors and traders were left with very less stock levels. As the restocking was carried out on a huge level in the first week of July the vendors were left with only a week’s inventory. For, distributors it was even less.
And it was one of the main reasons that such huge orders penetrated during this quarter.
After a comparatively sluggish quarter, the manufacturers were confident about a bumper quarter during the festive season which commenced in August this year.
During these crucial period vendors very heavily pushed for the handsets in the market which only made way for unparalleled growth in the distribution.
The FINAL say
While we are surging ahead definitely there is still a long way to go if compared with China’s Smartphone market, As China is far ahead of India with more than 110 million shipments every quarter. A lot needs to be done on the supply chain, local retail laws and improving the quality of the Internet.