micromax, counterpoint, counterpoint research
Agencies

Counterpoint Research, on its part, has pegged current 5G smartphone penetration at 29%, which is expected to go up to 38% by the end of 2022.

Samsung, Reliance Jio, and Indian handset brands like Lava and Micromax may be the greatest beneficiaries if cash-rich Chinese smartphone companies stay out of the sub-Rs 12,000 segment, which is 30-40% of the market at present, according to market trackers and industry experts.
Homegrown electronics brands like Boat and Noise could also see an opportunity to diversify beyond smartwatches and audio products, say market trackers, while Indian smartphone brands like Lava and Micromax could make another play at recapturing the market.
“The greatest beneficiaries can be Samsung and the Indian brands. Samsung, being present in almost all price bands and having a robust manufacturing base in India, is in prime position to take advantage of this,” said Prachir Singh, senior analyst, Counterpoint Research. Samsung is India’s second largest smartphone brand, as per Counterpoint, and number four, as per IDC India.
He added that JioPhone Next can also fill up the void as Reliance has been ramping up its supply in the last few quarters. “The Indian brands will need to expand their product portfolio and provide adequate supply to satisfy the consumer demand.”
ET reported in its August 9 edition that the government is likely to informally nudge Chinese smartphone players to steer clear of the under-Rs 12,000 market segment, in a bid to revive the fortunes of homegrown brands such as Lava and Micromax, which were pushed to the fringes in the last seven years.
The sub-$150 (roughly Rs 12,000) accounted for 31% share in the Indian smartphone market in Q2 2022, according to Counterpoint. IDC India says that segment comprises 40%-plus of the market, with 22% of the market below Rs 8,000.
“The under-Rs 8,000 segment is not growing because the demand is tapering, and for a feature phone user, the gap is too high… brands have already de-focused from that segment,” said Navkendar Singh, associate vice president-devices research at IDC (India, South Asia & ANZ)
The sub-Rs 8,000 segment is where most of the Indian brands are operating at present with only a few models breaching the Rs 10,000-mark. However, the Rs 8,000-12,000 segment has almost a quarter of the market, served primarily by Chinese players like Xiaomi, Realme, and Transsion that has 70% of that segment, according to IDC India’s Singh.
“Who will fill that vacuum for them? Lava probably can, while Micromax, I don’t know if they can do it again. As a result, I do not think it is a far-fetched notion that Boat and Noise could come up as alternatives. But they will need huge support from the government in terms of infrastructure, investment and other things,” he added.
Lava, which used to command a 6% market share at its peak in 2015, now only has 0.5% of the market as of Q2 2022, according to Counterpoint Research. Micromax, which used to account for 17% of the market in 2016, has less than 0.1% of the share at present.
An executive of an Indian brand, who wished not to be named, said that in the sub-Rs 12,000 the Chinese players neither design, nor manufacture their models. That is done by original device manufacturers (ODMs).
“The same ODMs, who have a presence in India, can also be leveraged by Indian companies,” the executive said.
He added that the sub-Rs 12,000 segment sees shipments of around 50 million annually. “The Indian companies used to ship more units than this at their peak in 2015, when they had 44% of the market by volume, and 28% of the market by value,” he said.
He saw nothing wrong in the Indian government’s approach to push more Indian brands.
“The strategy is also similar to what China itself has done to American software giants by putting in place the Great Firewall restricting access to popular services like Google Search, YouTube, and the likes to allow Chinese homegrown software companies to grow and capture the market,” he noted.

TECH NEWS RELATED

Galaxy Z Flip 4 gets new limited edition accessories from Prosto

Samsung’s fashionable Galaxy Z Flip 4 is getting more customization options. Well, sort of. Although the phone is not getting any additional colors to its Bespoke Studio, Samsung has teamed up with Polish urban fashion brand Prosto to release a handful of limited edition accessories for the foldable Galaxy ...

View more: Galaxy Z Flip 4 gets new limited edition accessories from Prosto

Unofficial Samsung Galaxy S23 renders ditch camera bump

The S23 is rumoured to feature a 6.1-inch display, while the S23+ could sport a 6.6-inch screen

View more: Unofficial Samsung Galaxy S23 renders ditch camera bump

Exclusive: Samsung Galaxy S23 Ultra first look revealed

Samsung Galaxy S23 series is a work in progress, and the series has recently appeared on certification websites too. Yesterday we shared the first look of the Samsung Galaxy S23+ and talked about the possible design and dimensions of the same. Again, we are here in collaboration with Onleaks ...

View more: Exclusive: Samsung Galaxy S23 Ultra first look revealed

Photos of Samsung Galaxy S23 Apparently Leaked Online

The new flagship phone is expected to be released early next year.

View more: Photos of Samsung Galaxy S23 Apparently Leaked Online

Galaxy S20 One UI 5.0 beta is almost live, but BTS Edition devices can’t join

The Galaxy S20 was among the first smartphones to enter the One UI 5.0 beta stages of development, except it was all done behind closed doors. Fortunately for Galaxy S20 customers in South Korea, Samsung is now almost ready to test the One UI 5.0 beta firmware on the ...

View more: Galaxy S20 One UI 5.0 beta is almost live, but BTS Edition devices can’t join

Samsung Galaxy S23 series to launch earlier than expected

We’re getting the new Qualcomm Snapdragon 8 Gen 2 chip in just a few months. After that, tons of new Android flagships using the chip will start popping up, and the Samsung Galaxy S23 series is on the list. According to the latest information, the next-gen Galaxy devices will ...

View more: Samsung Galaxy S23 series to launch earlier than expected

Galaxy S22 series could get a surprising new camera feature

Samsung appears to have cooked up another camera feature for the Galaxy S22 series, and this time, it’s seemingly headed for the default Camera app rather than Expert RAW. This upcoming change should especially please fans of hyperlapse video recording, as it will allow Galaxy S22 series customers to ...

View more: Galaxy S22 series could get a surprising new camera feature

Samsung to make up for GOS controversy with early Galaxy S23 launch

From the moment the first Galaxy S23 rumors hit our radar, we assumed that Samsung will want to announce the series in January or February 2023. The next flagship trio should either get unveiled in January like the Galaxy S21 did or borrow the Galaxy S22’s Unpacked schedule and ...

View more: Samsung to make up for GOS controversy with early Galaxy S23 launch

Samsung Galaxy Tab S8 FE makes its way to Geekbench; Check details

Samsung Galaxy S23: Everything we know so far

The Morning After: Does Samsung have another phone-battery problem?

One UI 5.0: A popular feature of iOS 16 is coming to Samsung

Samsung Galaxy S23 Plus leak reveals major redesign — the verdict is unclear

Samsung SmartThings platform now has over 10 million connected devices

Google Pixel 7 Series To Go Up Against The Samsung S22 And iPhone 14 Series

Samsung smartphone batteries keep swelling and exploding

Samsung Galaxy Tab S8 FE Specifications Tipped: To Come with Kompanio 900T SoC, 4GB RAM

Samsung Display working on slideable PCs in collaboration with Intel

Galaxy A12 Nacho gets September 2022 security update

Intel’s upcoming Unison app will help you sync your Galaxy and iPhone with a Windows PC

OTHER TECH NEWS

Top Car News Car News