Mobile Handset Shipments Surpass 75 Mn Mark In Q2 2016

by CXOtoday News Desk    Aug 25, 2016

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The mobile handset market made quite a healthy comeback in the second quarter of 2016, owing to an upward movement in both feature phones as well as smartphones, as stated in CMR’s India monthly mobile handset review, released today. As per the report, a total of 65.9 million handsets were shipped during the period, of which 56.5 per cent where feature phones. The proportion was slightly higher than the previous quarter, where feature phones contributed 54.9 per cent to the overall shipments. 

The mobile handset shipments are likely to surpass 75-million mark per quarter for the first time in Q3’CY16, attributable to several factors ranging from festive season impact, increased disposable income, new product launches and the ensuing intense competition within the telecom operators as RJio inches closer to its commercial launch.

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“As the telecom services data indicates, new customers are being acquired in far-flung areas of the country giving impetus to the feature phones and the existing users are due for refresh (upgrade) of the phones. Many users in the Tier I and Tier II markets had purchased their smartphones around 2013 to mid of 2014 and it’s now their turn to go for an upgraded smartphone. At the same time, as the mobile base expands to rural and tertiary regions of the country, we expect good traction for the feature phones as well,” Faisal Kawoosa, Lead Analyst for Telecoms at CMR said while commenting on the main trends.

“I see China brands replicating their smartphone strategy for feature phones now. The strategies they adopted for a wider reach in the smartphone market of the country will be replicated for feature phones too. This is why we are seeing a spur in the growth of Chinese feature phone brands, besides existing brands getting stronger,” Faisal added.

cmrs

In case of smartphones, the report suggests, though less than INR 2,000 saw over 200 per cent growth in shipments in Q2 over the previous quarter, an interesting thing to witness was strong growth registered in the price bands above INR 15,000.

The high-end smartphone segment, which lies above INR 20,000 price range, has registered a 35 per cent growth during the quarter, with Oppo, LeEco, Asus, LG and Huawei benefiting the most in this category.

“With regards to smartphones, we are now seeing replacement becoming synonymous to upgrades. Hence, people refreshing their smartphones are also jumping to a higher price range, causing higher order growth in such price bands,” Tanvi Sharma, Analyst for Mobile Handsets market at CMR said.