Research and market analysis firm Counterpoint has just released its latest report on the online smartphone market in India. This new report talks about the findings for Q1 2019 while giving us comparative analysis with Q1 2018. The report noted that India has reached the highest ever market share when it comes to smartphone shipped online in Q1 2019. According to Counterpoint, the online channel shipments grew 17 percent year-on-year to stand at 43 percent in Q1. The firm noted that this was possible with the help of new smartphone launches, number of sale events and discount offers.
Anshika Jain, a Research Analyst issued a statement about the increased online sales in spite of the new e-commerce policy. Jain added, “Price cuts of popular devices and more launches drove online channel shipments to the highest ever level In Q1 2019. Xiaomi’s Redmi 6A, and Note 6 and 7 series, Samsung’s online exclusive M series, Realme 3, Honor 10 Lite, and Asus Zenfone Max Pro series were the major contributors for the growth of the online segment.” Taking a look at market share for all the smartphone companies, we saw Xaiomi decline from 57 percent in Q1 2018 to 43 percent in Q` 2019.
Xiaomi India market share reduced in online
Realme entered the market with 11 percent to reach the third with Samsung sitting at second with 15 percent. Asus also saw an increase to get to 8 percent in 2019 from 0 percent in 2018. Last but not least, Huawei dropped from 8 percent to 7 percent in 2019. Brands were able to clear extra inventory because of their strong reach before the policy change. Flipkart was on the top with its 53 percent online market share while Amazon grew to account for 36 percent. The report also noted that Amazon India accounted for 81 percent of sales in the premium smartphone segment. In contrast, Flipkart only accounted for 15 percent of the market share.
The report also noted that the top five smartphone brands accounted for about 85 percent of smartphone shipments in India. Counterpoint noted that the Xiaomi Redmi 6A was the best selling smartphone in Q1 2019. The report also stated that six of the top ten smartphones selling online were Xiaomi devices.
A number of smartphone makers also made moves to grow their offline reach. Tarun Pathak, another analyst added, “This quarter we have seen brands adopting a hybrid channel strategy to gain market share. Key brands like Xiaomi India, Realme, OnePlus have started expanding offline, which reduced some of the dependency of these brands on online channels.”