Sunday, 6 March 2016

Just ‘affordable’ pricing doesn’t sell smartphones in India

Posted By: Balagopal Bose - 07:24
Despite all the criticism levelled against Apple for the fact that the iPhone 6s and the iPhone 6s Plus are “expensive”, the Cupertino-based company has surpassed Chinese smartphone maker Xiaomi in terms of market share in India.
According to new data released by the International Data Corporation (IDC) for the fourth quarter of 2015, Indians are giving a thumbs up to the iPhone.
But before we get to that, let us get to the basics. The IDC Monthly City Level Smartphone Tracker report suggests that Samsung retains the top slot with an overall 29.4% market share, while Micromax is in the second place with 14.7%. The Lenovo-Motorola team corners 10.1% share, while Indian smartphone makers Intex (8.2%) and Lava (7.1%) take up the fourth and fifth positions, respectively.
Samsung must have scored high because of the fact that the Galaxy S6 and the Galaxy Note 5 were well received, and so were the updates to the more affordable Galaxy A and Galaxy J series of phones.
Micromax continues to do well in the mid-range Android smartphone segment. Lenovo and Motorola, with their combined energies, have a smartphone at all possible price points, right from the Moto E and the Lenovo K3 Note (sub-Rs.10,000) to the Moto X Force (Rs.49,999).
However, the big takeaway from the report is that Apple (4.6%) has overtaken Xiaomi (3.5%), that too in the same quarter when the company faced a lot of criticism for the pricing of the new iPhone variants. Xiaomi, all along, has made a lot of noise about offering flagship-level user experience at much lower prices with its Redmi and Mi range of smartphones.
The IDC report specifically looks at the numbers in Tier I as well as Tier II and III cities, the average of which is the overall market share in India.
In Tier I cities, the top three positions remain as it is—Samsung’s share is at 28.7%, while Micromax corners 14.8% and Lenovo-Motorola 12%.
In Tier II and III cities, Samsung’s new mid-range phones help it capture 30.4% share, while Micromax gets 14.5%. Intex with 9.1% pips Lenovo-Motorola (7.3%).
Incidentally, for all its positioning as the champion of affordable Android smartphones, Xiaomi manages just 2.1% share in price sensitive markets where it should have otherwise done really well—and is behind Lava (5.9%) and Apple (2.8%).

About Balagopal Bose

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