NEW DELHI, February 11, 2019 – According to IDC's Asia / Pacific quarterly report on mobile phones, the smartphone market in India sold 142.3 million units in 2018, recording healthy growth of 14.5% from the previous year. one year on the other compared to 2017. After a strong quarter in 2018, the smartphone The market experienced a sequential decline of 15.1% in 2018Q4 due to the large stock of distribution channels, but experienced healthy annual growth of 19.5%, driven primarily by the multiple sales of e-merchants beyond the festive period of Diwali that lasted until December.

"Among the highlights of 2018, there were web-based brands that drove the share of the online channel to an all-time high of 38.4% in 2018 and 42.2% in the fourth quarter of 2018. This was primarily driven by several rounds of discounts from online retailers that made prices affordable through various financing options, repayment offers and buy-back programs. Shipments of the exclusive Xiaomi, Honor, Realme, Asus, OnePlus, etc., online portfolios fueled this growth, resulting in 47.3% year-over-year growth of 4T18 for the online channel, "says Upasana Joshi , Associate Director of Research, Customer Peripherals, IDC India.

However, the offline channel experienced a rather gloomy year with modest annual growth of 6.7% in 2018 and sequential growth of 5.0% in the fourth quarter of 2018. The offline network has not been able to keep pace with significant discounts and marketing initiatives from online retailers almost throughout the year. That said, offline is still the largest mobile phone distribution channel in India and is critical to the long-term success of any brand in India.

With the government initiative to encourage local industry in India in 2018, mobile phone components have been strengthened, and the weakened rupee has added to the challenges of the long tail of brands located outside the Top 5.

The overall average smartphone sales price remained stable at USD 158 in 2018, with large shipments in the mass segment ranging from USD 100 to USD 200, accounting for more than half of the smartphone market in India. Says about price segment trends, Joshi adds, "The premium segment (over $ 500) outperformed all other price segments in 2018 with growth of 43.9% year-over-year. that it still represents a small share of 3% of the global smartphone market. . OnePlus has become the leader in the OnePlus 6 and OnePlus 6T product segment, which ranges from $ 500 to $ 700. However, in the super premium segment of more than $ 700, Samsung has overtaken Apple for first place with its Galaxy S9 series, "adds Joshi.

The mobile phone market, which accounts for 56.0% of the total mobile phone market, delivered 181.3 million units in 2018, with growth of 10.6% year-on-year. This increase is mainly attributable to Jio Phone shipments during the year, which accounted for 36.1% of all telephones with functions. The market for 2G / 2.5G solutions decreased by 23.0% year-on-year in 2018 due to the strong demand for 4G-compatible handsets in the market.

Highlights of the Company: CY 2018 and 2018Q4

Top 5 best smartphone vendors

Xiaomi continued to dominate and grew 28.6% year-over-year in the fourth quarter of 2018 thanks to the affordable features of the Redmi series, benefiting from high decibel marketing campaigns and an offline expansion with its Mi Preferred Partner Program and the opening of rural stores. The Xiaomi Redia 5A and Redmi Note 5 / Pro series proved to be the best-selling handsets in 2018, all brands combined, representing 10 million items each during the year. The brand continued to dominate the online channel with a market share of 47.2%, moving to second place in the offline channel, surpassing Vivo in the 2018th quarter.

Samsung remained in second place, with a year-on-year decline of 7.9% in 2018Q4. The newly launched Galaxy A7 (2018), with three cameras, recorded a high demand in 2018Q4, followed by the Android Go model, the Galaxy J2 Core. The brand is expected to make a big comeback with its new online "M Series" series, which will be available on Feb. 19 via flash sales.

vivo remained in 3rd position with a year-on-year growth of 79.6% in 2018Q4. Its affordable models, the Y81 and Y71 models, continued to generate maximum demand, as did the flagship V11 and V11 Pro series. The brand continued to invest heavily in marketing and promotional activities and to offer lucrative channel margins.

Realme entered the list of the top 5 suppliers in 4th position thanks to its affordable Realme 2 and Realme 2 Pro series. The brand also moved from fourth place in 2018T3 to second place in the online space with a 17.3% share in 4Q18. The brand plans to first expand its footprint on the offline channel through large format retail stores such as Reliance Digital, and then gradually adapt to traditional stores.

OPPO continued to hold the 5th position, with a high growth of 71.7% yoy in 2018 Q4. The brand's "A" series, with models like the A3 and A83, generated average demand. However, Vivo continues to face stiff competition from the offline channel due to reduced channel incentives and consumer programs.

India IDC Forecast:

Commenting on the outlook for 2019, Navkendar Singh, Deputy Director of Research, Customer Peripherals and IPDS, IDC India, said: "Almost all brands that have managed to entice in 2018 via e-commerce partnerships have already begun their foray into offline to get established long term. This has become all the more crucial as the new e-commerce guidelines come into effect on February 1, 2019.

In 2019, we will see design improvements such as thinner glasses, removed notches, perforated screens and increased promotions around three or four rear cameras, whose utility factor remains bokeh, wide angle, portraits, etc. Also discover innovations such as built-in artificial intelligence for a superior video and photographic experience, which will let you go from the front. "

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