Samsung still dominant player in India, Micromax catching up fast

This news will certainly provide some relief to the Sammy camp after last week’s report of Counterpoint Research, which said that Micromax has surpassed Samsung to become the number one phone vendor in Indian mobile market. According to the latest reports of IDC, the Korean smartphone giant still holds the crown of being number 1 in Indian market. However, the alarming news is that Micromax is rapidly catching up!

In its latest report for Indian mobile market IDC says that Samsung is still leading the market with 17% market share. Micromax is on the second place with the share of 14% while Nokia has slipped to the third place with a 10%. Karbonn and Lava are number 4 and 5 respectively while ‘Others’ collectively contribute to the market with 42% share. The report is based on second quarter’s data.

It’s worth mentioning that Counterpoint Research had completely different numbers for both companies. According to the research firm’s report Micormax was leading Indian mobile market with 16.6% share while Samsung was behind Micromax with 14%. The report had been strongly criticized by Samsung and company’s south-west Asia Chief BD Park had said that “there’s a strong business motive behind release of such kind of data.”

Phones Vendor - Overall Share in India for Q1 2014

Phones Vendor – Overall Share in India for Q1 2014

IDC’s report will certainly provided a temporary relief to Samsung. But it must be understood that each research firm uses its own parameters and resources for conducting market research. So nobody can say with certainty that Counterpoint’s report is entirely wrong. To maintain its leadership in the Indian mobile space Samsung will have to do something quickly, because it’s notable that Micromax is growing rapidly.

The smartphone story

The report also states that Indian smartphone market enjoyed an year-on-year growth of 84% during the last quarter. However, 71% of the market is still based on feature phones, which leaves enough ground for the smartphone battle. The overall market stood at 63.21 million units during the second quarter with an increase of 5% in comparison to the previous quarter. Smartphone shipments accounted for 18.42 million.

The sub-$200 category still drives the growth of smartphone market in India. 81% of smartphones purchased during the second quarter fall under this category. Phablets accounted for a mere 5.4% of the smartphone segment. And in that too half of them were phablets priced under $250. Yeah, those Galaxy Notes are rare in India!

When talks come to the smartphone market, the list of leaders looks something like this: Samsung, Micromax, Karbonn, Lava and Motorola.

In the smartphone segment Samsung has 29% market share, thanks to its sub-$150 products like Galaxy Star and Galaxy S Duos. Micormax is second with 18% while Karbonn, Lava and Motorola have 8%, 6% and 5% market share respectively. According to IDC, aside from Samsung this news is also a bit concerning for Karbonn because it may soon be replaced from the third place by Lava.

The smartphone market is gonna heat up further in the upcoming quarters as Micromax grows in size and newcomers like Xiaomi and Oppo steal some thunder from these guys. Especially Xiaomi, which has been successful in building some momentum around its brand. The upcoming quarters of this year are going to be really interesting!

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