India has overtaken the Us as the second-largest mobile phone market: Xiaomi’s two-year-old first realme growth fastest

The Market Monitor service, owned by Counterpoint, reports that India’s smartphone market surpassed the U.S. for the first time in 2019 to become the world’s second-largest smartphone market. India’s shipments reached 158 million units in 2019, up 7% year-on-year. This is largely due to the Chinese handset manufacturers continue to integrate flagship features into the mid-range models, and to identify the first/second phone upgrade user needs. In addition, online channels are the preferred sales platform to bring these products to market faster.

India has overtaken the Us as the second-largest mobile phone market: Xiaomi's two-year-old first realme growth fastest

Smartphone Share in india market 2019

India has overtaken the Us as the second-largest mobile phone market: Xiaomi's two-year-old first realme growth fastest

Smartphone Share in India Market q4 2019

Tarun Pathak, Counterpoint’s deputy director, commented:

Although for the first time each year, the smartphone market is growing in single digits, India’s penetration rate is insufficient compared to many other markets. The user’s 4G penetration rate is about 55%.

Looking ahead, we expect this demand to grow further due to excessive competition among multiple participants, the continued transition from functional phones to smartphones, and the gradual proliferation of key smartphone features to the entry-level price tier. We further expect brands to have multiple-tiered strategies involving partnerships in mobile ecosystems such as hardware, software and services to create opportunities in different segments such as entertainment, gaming, and financial services. “

Commenting on the competitive landscape, Anshika Jain, research analyst at Counterpoint Research, said:

The share of Chinese brands is at a record 72 per cent in 2019, up from 60 per cent a year ago. In 2019, we see all major Chinese companies expand their online and online channels to gain market share. For example, Xiaomi, Realme and OnePlus have all added offline outlets, while brands such as Vivo have expanded their online sales through the Z and U-series.

For some OEMs, 2019 is also the fifth anniversary of entering India. Several have seen significant growth since the first year of operations. In the past four years, for example, Xiaomi, Vivo and OnePlus have increased 15, 24 and 18 times, respectively. This underscores the maturity of OEMs to seize the next wave of growth and further expand their presence in India.

Key points of the report

Xiaomi has been the first in the market for two consecutive years

Realme (255%), Vivo (76%), ASUS (67%) and OnePlus (29%) are the fastest-growing smartphone brands.

The combined share of the top five smartphone brands (about 84%) was the highest ever.