India’s smartphone market grew 12% year on year in the first quarter of 2017, with over 27 million units shipped, but no new names entered the top five. With Samsung treading water in first place, significant sequential growth saw Xiaomi and Vivo take second and third place respectively. Lenovo moved up a place to fourth, while Oppo fell back to fifth.

The top three players now have markedly different channel strategies. Samsung maintained its market share, shipping just over 6.0 million units. Sustained J-series shipments to its established offline distribution partners ensured that it stayed on top. 

Xiaomi continued to grow in Q1 2017, accounting for 14% of shipments in the quarter, up from 3% a year ago, as it closes in on 4 million units. “Xiaomi’s success in India is underscored by its online go-to-market strategy. Demonetization seems to have had no impact on it, as its target customer is young, Internet-enabled and primarily buys online,” said Canalys Research Analyst Ishan Dutt.

Third-placed Vivo surpassed the 10% mark this quarter, with an impressive 36% growth in sequential shipments. “Vivo was just shy of shipping 3 million smart phones in the quarter. Its strategy to focus on the highly fragmented ‘unorganized’ retail market is paying off,” said Mo Jia, Research Analyst. “Its ability to drive sales by investing in marketing campaigns has seen it displace local vendors that once thrived in this space.”

The Indian smartphone market is set for upheaval as the government looks to phase in its Goods and Services Tax in the coming quarters. “We will see a change in vendors’ channel strategies as new distribution models become more cost-effective,” said Dutt. “Pure online players are likely to suffer, and those that react quickly to the new regulations will benefit.”

For more information, please contact:

  • Canalys EMEA: +44 118 984 0520

Ben Stanton: ben_stanton@canalys.com +44 118 984 0525
Tim Coulling: tim_coulling@canalys.com +44 118 984 0533

  • Canalys APAC (Shanghai): +86 21 2225 2888

Mo Jia: mo_jia@canalys.com +86 21 2225 2812

  • Canalys APAC (Singapore): +65 6671 9399

Rushabh Doshi: rushabh_doshi@canalys.com +65 6671 9387
Ishan Dutt: ishan_dutt@canalys.com +65 6671 9396

  • Canalys Americas: +1 650 681 4488

Chris Jones: chris_jones@canalys.com +1 650 681 4489

About Canalys

Canalys is an independent analyst company that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.

Receiving updates

To receive media alerts directly, or for more information about our events, services or custom research and consulting capabilities, please complete the contact form on our web site.

Alternatively, you can email press@canalys.com or call +1 650 681 4488 (Palo Alto, California, USA), +65 6671 9399 (Singapore), +86 21 2225 2888 (Shanghai, China) or +44 118 984 0520 (Reading, UK).

You may be interested in

India’s smart personal audio market bucks flat global trend and jumps 62% in Q3 2021  
India’s smart personal audio market bucks flat global trend and jumps 62% in Q3 2021  

14 December 2021
Registration opens for Canalys Forums 2021 as more sponsors revealed
Registration opens for Canalys Forums 2021 as more sponsors revealed

09 August 2021
India smartphone market Q4 2020 and full year 2020
India smartphone market Q4 2020 and full year 2020

27 January 2021

   Global PC market down 2% in Q3 2021 but shipments still well above pre-pandemic levels
Global PC market down 2% in Q3 2021 but shipments still well above pre-pandemic levels

01 November 2021

 

Receiving updates

To receive media alerts directly, or for more information about our events, services or custom research and consulting capabilities, please contact us. Alternatively, you can email press@canalys.com.