KOLKATA: For the first time a Chinese online-sales focused company — OnePlus — has emerged as the market leader in the Rs 30,000-plus Indian smartphone market toppling Samsung and Apple and signalling the start of Chinese dominance in the premium segment as well, analysts said.OnePlus gained significant share in the April-June quarter on the back of a new model launch, expansion in offline retail and Apple losing ground due to restructuring of its sales network and the usual price drop of iPhone not happening due to hike in import duties.According to Hong Kong-based tracker Counterpoint Research, OnePlus reached over 40% share in the premium segment in the April-June quarter compared to 9% in the same period last year. Samsung was pushed to the second spot with 35% share and Apple has, for the first time, reached the third slot in India with a record low of less than 14%.The Chinese brands are now trying to control the premium segment with Huawei, Oppo, Vivo and Xiaomi launching devices this year.In the overall market, Samsung and Xiaomi are fighting a close battle with the former regaining leadership by 1% margin after two quarters, as per Counterpoint. The researchers estimate Chinese brands now control 62% share of Indian market as compared to 17% in 2014 with success in the sub-Rs 20,000 segment.65206219 “The premium segment is becoming crowded. Chinese brands have ramped up their distribution, understand the market much better and will create pressure for Apple and Samsung who have dominated till now,” said Counterpoint Research partner and research director (IoT, mobile and ecosystems) Neil Shah.The Rs 30,000-plus segment is 3% of the smartphone market in India by volume and 12% by revenue, growing at 19% year-on-year.OnePlus India general manager Vikas Agarwal said the brand had become the largest premium brand in India in little over three years.The brand was number two for three consecutive quarters.“The launch of the new model -- OnePlus 6, the one-model-a-year strategy, strong partnership with Amazon, whereby we leverage their resources, and offline expansion in partnership with Croma, and the five offline and one experience stores has helped us connect with the Indian consumers,” said Agarwal.Agarwal said OnePlus will set up 10 offline stores and four experience stores by the end of this fiscal. He said the company is manufacturing all its smartphones in India and setting up its own R&D centre in India to customise for the Indian market.“The fact that we have become the leader in a leaner season gives us the big platform ahead of the festival season,” he said.Counterpoint’s Shah said Apple needs to strengthen its ‘Make in India’ strategy as the hike in import duties recently killed the brand’s price competitiveness. The decline of Apple was due to a drop in shipments of iPhone 8 and X series with consumers shying away from buying them as there was no drop in prices after the duty hike.“The Rs 30,000-40,000 segment has become a sweet spot where OnePlus operates with several consumers buying their second or third handset preferring the brand. The price difference with iPhone X and Samsung’s Galaxy S9 is very high,” said Shah.
from The Economic Times https://ift.tt/2Kc3TwM
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