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Samsung losing share in Indian smartphone market

Company's share in India's smartphone market falls to 24% from 29% in previous quarter, still retains No. 1 position

Sounak Mitra  |  New Delhi 

In line with the decline in Electronics' global revenue from mobile phones, the South Korean smartphone maker is also losing market share in India, which accounts for about 70 per cent of its overall mobile handset revenue.

For the quarter ended September this year, the company's share in India's fell to 24 per cent from 29 per cent in the previous quarter, though the company managed to retain its No. 1 position, showed a report by International Data Corporation (IDC).

In terms of market share, home-grown has narrowed the gap with fast - in the September quarter, it had a market share of 20 per cent, against 18 per cent in the June quarter, according to the IDC study.

Another domestic handset maker, Lava, has also eaten into Samsung's share. From six per cent in the June quarter, Lava's market share increased to eight per cent in the September quarter. and Motorola, which entered the market early this year, maintained their market shares at eight per cent and five per cent, respectively. has also lost marginal share to disruptors such as Xiaomi, as well as and HTC, among others.

In terms of value, the picture is different. A study by market research firm GfK showed Samsung accounted for 41.5 per cent of the smartphone market, while Micromax's share was 10.6 per cent and Nokia 12 per cent. This doesn't come as a surprise, given that Samsung has been pushing products priced more than Rs 40,000 a unit, while is primarily present in the sub-Rs 20,000 category.

As of September this year, the Indian was estimated at Rs 39,000 crore, while the overall market for phones was estimated at about Rs 57,000 crore.

According to IDC's Asia Pacific Quarterly Mobile Phone Tracker (excluding Japan), the in India grew the fastest in the September quarter, expanding 27 per cent on a sequential basis. About 72.5 million mobile handsets (feature phones and smartphones) were sold during the September quarter, growth of 15 per cent compared to the previous quarter. Samsung topped the chart with a 16 per cent share, followed by (14 per cent), Nokia (11 per cent), (10 per cent) and (eight per cent).

Karan Thakkar, senior market analyst, IDC India, said it was expected next year, the market would be flooded with fourth-generation devices. The smartphone market, he added, could exceed the 80-million mark this year, against 44 million in 2013.

First Published: Thu, November 27 2014. 00:40 IST
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