Samsung had a market share of above 30% a few quarters back with the recent aggression by many companies like Motorola, Micromax, Karbonn it has got reduced to 29% as per a report from IDC(International Data Corporation) for Q2(Apr-Jun) and same has been drastically reduced in the Q3(July-Sept’14). According to IDC the entire smartphone market expanded by 27% in Q3 Vs Q2 in 2014.
The total Shipment of Smartphones and Feature Phones give us a fair Idea of the Market penetration of Smartphones.
The total phone market stood at 72.5 million units shipped (23.3 million smartphones and 49.2 million feature phones) in Q3 2014.
Motorola India on Monday announced that it has sold 2.5 million smartphones in India this year. The company announced the news on Twitter and said, “#MotoFans, thanks for choosing us! To celebrate 2.5M customers, we have some cool offers in store!”.
Motorola, Xiomi, Lava, Micromax all have been eating into the market share of Samsung in India which once had a close to 34% share.
Is Samsung headed the Nokia way?
According to the Last IDC report based Smartphone Market Share in Q2 2014(Apr-Jun’14).
Samsung had 29% Market Share, followed by Micromax with 20% market share, Lava having 6%, Karbonn 8%, Motorola 5%, and others had a 34% market Share.
The Latest Report By IDC for Q3(July- Sept) Suggest Samsung has lost Massive Market Share by 5% in the Indian Market.
As Per Latest IDC report Samsung has 24% market Share, followed By Micromax at 20 %, Lava 8%, Karbonn 8%, Motorola 5%, and others 35%.
- Lava has been a clear winner with 2% increase in Market share.
- Micromax has also been doing great with a similar increase of 2% market share in Q3.
- Others – This may be Gionee, Xiaomi and other brands like Spice and Intex eating into Samsung’s market share.
- Motorola and Karbonn have been able to hold on to their share in Q3 Vs Q2.
Samsung had its share of troubles from not getting the latest updates from Google when Kitkat came and predatory pricing from the rivals like Xiaomi and Motorola. Now with Google and Motorola devices has moved to the Android Lollipop it is even more difficult for Samsung to have any kind of differentiation.
Samsung is going to struggle more in coming years if Google does not allow it to offer latest OS updates as fast as they are rolled out on the Nexus and Motorola Devices.
When we have cheap Chinese hardware available why would a consumer buy Samsung for premium with an old operating system? Is Samsung situation “FUBAR” (you may have to Google what is FUBAR) we may see that in coming months. While Apple with its own iOS operating system is not living on Google’s mercy, vision of Steve Jobs have made Apple a formidable organization.
With Entry of Xiaomi and online crazy sales deals offers and the infamous Billion day, Mi3 and Redmi has sold more than 8 lakh handsets in the country as per recent reports and it is every bit possible that Xiaomi will be able to sell 1 million smartphones by end of 2014 in the Indian market. With other Manufactures like Intex, Spice, Gionee also becoming aggressive with new smartphone launches it is yet to be seen how does the market share for Samsung gets impacted by the end of December 2014.
Also, check out the best smartphones under Rs. 10000.
Smartphone Market Share August 2014
Samsung had a market share of above 30% fa ew quarters back with the recent aggression by many companies like Motorola, Micromax, Karbonn have reduced it to 29% as per the report from IDC(International Data Corporation). Samsung had its share of troubles from not getting the latest updates from Google when Kitkat came and predatory pricing from the rivals.
Motorola and Flipkart managed to sell huge volumes greater than 1 million handsets of Motorola Moto E, Moto X and Moto G. This has impacted Samsung in the budget smartphones , mid range and high end smartphone sales. Success of Nexus 5 ensured a dent in Galaxy S4 and Galaxy S5 sales in India and globally.
The second biggest challenge is google partnering with Micromax, Spice & Karbonn for the Android One budget handsets which Google sees as an initiative to”take India Online“.
With Entry of Xiaomi and online crazy sales deals offers and the infamous Billion day , Mi3 and Redmi has sold more than 5 lakh handsets in the country which offer great value for money for the buyers. Still, the buyers are queuing for the handsets who have not been able to secure them online.
All this adds up to the market share erosion for Samsung. Micromax, Lava and Karbonn the home fighters have also faced the heat with extreme predatory pricing by Xiaomi. They are also forced to set very competitive prices for Android One handsets.
Smartphone Market Share Samsung Motorola Micromax Karbonn India For Aug 2014
There has also been issues in sales and distribution for Samsung. Channel partners for Samsung India have openly accused Samsung for letting online retailers sell handsets at discounted prices which has impacted their physical retail sales volume.
On Motorola & it’s Expansion Plans
With Motorola’s taken over by Lenovo, there has been an increased focus by Lenovo to increase market share. We are expecting to close the acquisition by the end of the calendar year, which we believe makes us the third-largest smartphone player in the Indian market,” Amar Babu, Managing Director at Lenovo India, told economic times in an interview.
Recently Motorola reduced prices of its highest selling handsets Moto G and Moto E which are available now for Rs. 9,999 & Rs. 6,299 on Flipkart. Lenovo plans to take surge ahead of Karbon and Lava to become the third largest smartphone seller India in the coming months.
Amar Babu said Lenovo’s smartphone business has tripled year on year, much faster than the pace of growth in the market. Motorola is currently the fifth-largest seller of smartphones in the country. Smartphone sales in India are expected to surpass 80 million devices in 2014 compared with 44 million in 2013.
Shipments grew 84% year-on-year to 18.42 million smartphones in the April-June quarter, according to IDC.
“Motorola is such a strong brand. We will invest and make sure that we leverage it,” Babu said. Lenovo will get 3,500 engineers from Motorola Mobility, which should give the company a great level of design capability for its entire smartphone play globally.
Motorola smartphones are available only online in India and their sales crossed the 1 million mark within five months of launch, according to IDC. Lenovo is positive about setting up a manufacturing unit in the country, given the ‘Make in India’ initiative by the government. The company is hoping for certain incentives, Amar Babu said. We are seeing a positive trend with the make in India initiative from PM Narendra Modi and it is great for the country to attract investment and create more jobs in the Indian market.