Oct 30: Indian consumers have spent more than Rs 50,000 crore to buy smartphones marketed by Chinese brands during fiscal 2018. Going by reports in this regard, analysts and industry executives are of the view that the Chinese brand’s domination over the Indian brands will continue.
More than half of the Indian smartphone market sales are shared among the four major Chinese smartphone makers, Xiaomi, Oppo, Vivo and Honor followed by Lenovo-Motorola, One-Plus and Infinix. The latest data reveals that there is a hike in the sales of Chinese smartphones in the Indian market.
Analysts have been quoted in the reports as saying that, when compared to the leading South Korean, Japanese and Indian companies, the Chinese phone makers have launched their phones with high- end specifications at cheaper rates. They have now successfully placed themselves as global brands.
It has been pointed out that the Shenzhen hardware and R&D hub and the supply chain ecosystem can be easily accessed by the Chinese smartphone companies, which in turn, helped them come up with novel ideas.
Through Make in India policies, India has gained from companies like Xiaomi, Oppo, Lenovo-Motorola, Huawei and Vivo as they are investing in local manufacturing, thereby creating jobs. In April, Xiaomi revealed that it would invest Rs 15,000 crore for smartphone component manufacturing. Oppo is gearing up to set up two of its facilities in Uttar Pradesh.
As many as 5,000 people are employed at Vivo’s plant. Chinese phone makers have established themselves in prominent price segments. Xiaomi is leading in the Rs 6,000-13,000 segment while Vivo and Oppo stand in the Rs 10,000-22,000 segment. South Korean company Samsung has made it possible to be part of the segment, which makes it the only non-Chinese brand in the segment.
The Registrar of Companies (RoC) listing of FY18 shows Xiaomi at revenue of Rs 22,947.3 crore, Oppo Mobiles India at Rs 11,994.3 crore, Vivo Mobile India revenue at Rs 11,179.3 crore and Huawei Telecommunications India’s counted to Rs 5,601.3 crore. This year, the Chinese companies have together made revenue of Rs 51,722.1 crore which is almost double the amount Rs 26,262.4 crore they made last fiscal.
The Chinese companies’ lead in the Indian market will remain, as Chinese players are standing way ahead. OnePlus has managed to retain its place in the second quarter of this fiscal. Apart from this, Chinese companies like Xiaomi and Oppo are coming up with sub-brands such as Pocophone and Realme respectively.
Renowned brands Apple came with revenue of Rs 13,097 crore in fiscal 2018 while its rival Samsung moved ahead with sales of Rs 34,261 crore in fiscal 2017.