India has surpassed the United States to become the second largest smartphone market in the world, according to a new report from market research firm Counterpoint.
The top slot is still retained by China. According to the research done by Counterpoint’s Market Monitor service, the smartphone shipment in India grew by 15 per cent year-on-year in the fourth quarter of October-December 2015.
By the end of last year, India’s smartphone user base rose to 220 million mark for the first time.
“This speaks volumes for the scale India market provides for any player in the mobile connected ecosystem. India still has a long way to go as the smartphone penetration of the total potential population is still below 30%,” said Tarun Pathak, senior analyst at Counterpoint Research.
In a big boost to Prime Minister Narendra Modi’s ‘Make in India’ plan, almost 50 per cent of the smartphones, that were sold last year, were made in the country.
Interestingly, more than 20 mobile phone brands assembled their phones in India. Also, more than 40 per cent of the mobile phones shipped were smartphones.
Online retailers seem to have caught the customer’s imagination in India, with almost one in three smartphones sold through Internet.
With more than 150 smartphones brands selling their devices in India, Samsung led the overall mobile phone market with share equivalent to 28.6 per cent.
It was followed by Micromax, Lenovo and Intex with 14.3 per cent, 11.4 per cent and 9.6 per cent market share.
The smartphone market is expected to grow faster this year in the backdrop of Modi government’s ‘Make in India’ imitative.
Last year, Micromax Informatics co-founder Rahul Sharma said that his company is in the process of shifting its production from China to India in the next 24 months.
Also, Foxconn, known as the manufacturer of iPhones and iPads, announced a $5 billion investment in Maharashtra over the next five years.
In addition, Taiwanese original design manufacturer (ODM) Wistron Corp., and Optiemus Infracom Ltd have said that they would set up a manufacturing facility for telecom products in India.