Is Demonetization working in favor of Chinese smartphone brands?

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Chinese players have eaten into shares of worldwide smartphone players driven by Samsung and Apple, with the Indian players being most exceedingly hit, in the midst of increased rivalry and demonetization that has contracted cell phone sales in the Indian market.

Players like Oppo, Vivo, Xiaomi, Lenovo and Gionee, which have been exceptionally impactful in terms of advertising, have cornered the greater part of the cell phone showcase by shipments in November, interestingly, even as Apple’s shipments fell strongly and Samsung’s was for the most part level contrasted and October.

As per Neil Shah, research director at Hong Kong-based Counterpoint Research “This is the first time that Chinese brands together account for 51% share in smartphone segment, resulting in Indian brands combined share to drop below 20%, from a peak of over 40% earlier this year,”

As of September-end, Indian players were keeping pace with Chinese cell phone makers,each having 34% share of the market. They were followed by worldwide players, Samsung and Apple, with 32% share.

The scenario completely changed in October time of festive deals, when Chinese players’ share hopped to 47%, and after that a further four percent in November. Analysts have also predicted Chinese players’ share can well ascent to 60% of the cell phone advertise by mid of this current year,

Players like Samsung, which had a 22.6% share at September end, have seen flat shipments in November as demand sinked after demonetisation. The effect was more on Apple as the organization’s shipments fell almost by half.

Jaipal Singh, senior analyst at IDC said “The Indian vendors’ prime focus is the entry level segment, which is mainly driven by cash, while Chinese players operate in the higher price segments, where largely transactions are done through cashless media,”

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Madhurima Goyal, From ITvoir News Desk

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