Xiaomi is 2nd biggest mobile company in India

November 15, 2017
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NEW DELHI: Chinese phone major Xiaomi grew strongly in the third quarter (July-September) of this year and emerged as the second-biggest smartphone company in India, a shade lower than Samsung that still managed a slender edge. Xiaomi toppled Lenovo-Motorola, which has dropped to third position.

Micromax, which was in third position in July-September last year, has slipped out of top five positions.

According to numbers released by IDC, Samsung’s sales in July-September 2017 stood at 91.8 lakh units against 91.7 lakh units sold by Xiaomi in the same period. The companies had a market share of 23.5% each. Lenovo-Motorola sold 35.1 lakh units and had a market share of 9%.

Cumulatively, 39 million smartphones were sold in the period, showing a year-on-year growth of 21%, which was led by robust demand ahead of the festive period (Navratra and Diwali) and high-decibel offers by online players.

“E-tailers’ several rounds of online festival sales in August and September led to robust growth in the smartphone category. Thirteen million smartphones were billed to e-tailers with 35% annual growth and 73% growth from the previous quarter,” IDC said. The top five brands, which also included Vivo and Oppo of China, accounted for 72% share of the smartphone market compared to nearly 50% a year ago.

Pre-festive offers and discounts thrown in by the online sellers gave a big push to demand. “E-tailers have popularised many trends in the smartphone market, like making devices more affordable through easy financing options, attractive exchange offers,” said Jaipal Singh, senior analyst at IDC India.

Xiaomi was one of the strongest gainers with around threefold increase in numbers. “There has been a strong traction for our products and we have been boosting capacity and retail presence to build further momentum,” Manu Jain, MD of Xiaomi’s local operations, said.

Apart from a strong online and offline retail push, the company’s demand was fuelled by the Redmi Note 4 device, whose sales in the quarter were estimated at nearly 4 million units by IDC.

According IDC, Samsung has seen a “record-breaking quarter” with 23% year-on-year growth. The surge was led by models like Galaxy J2. And, new launches under the Motorola brand helped Lenovo/Moto combine to score better.