Huawei Aims To Double Smartphone Sales In India: Report

by CXOtoday News Desk    Jun 13, 2017

Huawei

Chinese mobile phone maker Huawei is looking to double its smartphone sales in India this fiscal year. The vendor is focusing on offline channel for its Honor brand and devices. It also aims to spend more on marketing budget, as it aims to garner success in India which is in tune with its global achievements, reports ET.

According to International Data Corporation’s (IDC) Quarterly Mobile Phone Tracker, China-based vendors continue to strengthen their grip in Indian smartphone market. In the first quarter of 2017, China-based vendors captured 51.4 percent share of the smartphone shipments in India with 16.9 percent sequential growth and impressive 142.6 percent growth over the same period last year. In contrast, share of homegrown vendors dropped to 13.5 percent in the Q1 2017 from 40.5 percent in Q1 2016.

 Increasing dominance of China-based vendors is resulting in a few new trends in India, said IDC, whereby, ASP (Average selling price) of smartphone has increased from US$131 in Q1 2016 to US$155 in Q1 2017. Almost two-third smartphones sold by China-based vendors are in the price range of US$100-U$200 in India. It has shifted the mass segment which used be the less than the above mentioned price in India contributing almost half of smartphone shipments in Q1 2017.

A report by Gartner revealed that Samsung’s market share is slowly decreasing since 2014 when it had 24.4% units by sales of vendor share to 2016 when it dropped to 17.3% share. On the other hand, Chinese make Xiaomi, a Canalys report said continued to grow in Q1 2017 accounting for 14% of shipments in the quarter, up from 3% a year ago, as it closed in on four million units.

Meanwhile, Xiomi, ViVo, Lenovo and Oppo smartphones are a few of the most sought after brands in India, and analysts predict the trend is here to stay.

Huawei has achieved quiet a success in the global market and is catching up with Apple and Samsung, yet has not seen much success in India.

ET quoted Allen Wang, director, Product Center at Huawei India Consumer Business Group as saying that though Huawei’s marketing budget will be higher than last year’s, it will be reasonable. “This can’t be done over a period of time, and is not sustainable. We respect Oppo and Vivo. (But) India offers big volume, hence, we want to ensure that our pricing is affordable and reasonable,” he said, adding that Huawei is aiming to tap customers looking to upgrade smartphones.  “In the Q1, we saw more than 100 per cent jump in our smartphone sales in India. We hope to continue that momentum,” Wang said.