Samsung had a market share of above 30% few quarters back with the recent aggression by many companies like Motorola, Micromax, Karbonn have reduced it to 29% as per 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
With the increased competition we may see a decline in Samsung market share to 27-28% for the month of October 2014 and November 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 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.