India, the world’s second largest market for smartphones, is currently a key battleground for a number of phone makers from China, Taiwan, and South Korea. As smartphone shipments slow in many parts of the world, India’s handset market continues to grow.
According to research firm Counterpoint, in July forty-two different smartphone models were launched in India, up from twenty-five models during the same period last year, and most of these new handsets are from Chinese smartphone makers, many of whom see India as their most important market.
According to a report by the International Data Corporation:
Leading the charge is Xiaomi, which last year ended Samsung’s five-year-streak as the top phone supplier in India . The period between April and June of this year was the fourth consecutive quarter for Xiaomi as the top vendor in India. Xiaomi (29.7 percent market share as of Q2) has aggressively undercut the offerings of its rivals by selling inexpensive but high-quality smartphones in India. A spokesperson for the company said that India is currently its most important market.
In the second quarter of this year, four of the top five smartphone makers were Chinese. In addition to Xiaomi, that number includes Oppo (7.6 percent market share), Vivo (12.6 percent), and Transsion (5 percent). Together with other Chinese phone makers such as Lenovo, the group held two-thirds of the local smartphone market in the second quarter. Less than three years ago, the aggregate market share of these companies was under 15 percent in India. […] Indian smartphone makers Micromax, Karbonn Mobile, Lava, and others together held about 46 percent of the market in early 2016. That figure has now been decimated, leaving local manufacturers with a single digit share.
Per the report, Chinese players were originally the design and hardware partners of Indian smartphone vendors. Much of the growing fortunes of the Chinese companies can be attributed to the level of commitment they have shown in India, according to several analysts. In addition to expanding their retail presence in the nation, they have made major investments in local manufacturing and assembly, helping to create new jobs for Indians and opportunities for small and medium businesses.