Xiaomi, Samsung are fighting it out in the Rs 10,000 & Rs 25,000 smartphones range

NEW DELHI: The Rs 10,000-Rs 25,000 smartphone segment is turning out to be the biggest battleground for Xiaomi, Samsung, Oppo and Vivo as India’s top four smartphone brands target the space expected to grow the fastest this year.

The segment expanded nearly 50% last year and is expected to accelerate further in 2018, becoming critical for the major players that want to grow or consolidate their share, said companies and experts. They added that affordability options such as instalment programmes along with cashback and buyback offers have raised consumer appetite for higher-priced phones rather than low-cost or entry level devices.

“Mid-segment is very attractive because it is the fastest growing and it’s pertinent to note that India is becoming a replacement market, with people upgrading their phones from less than Rs 10,000 to upwards of Rs 10,000 till Rs 25,000,” said Nipun Arya, brand director of Vivo Mobiles. That’s supplanted the under-Rs 10,000 segment, which was the main focus until recently.

Xiaomi, Oppo, Samsung and Vivo have launched several devices in the Rs 10,000-Rs 25,000 price range. “We believe that this segment will grow further in the coming years,” said Oppo India brand director Will Yang. While Oppo and Vivo were the first big movers in the segment since their India entry in 2016 — offering premium specifications at almost half the price — Xiaomi has closed in on them and now has most of its models in this range. The company has outpaced its Chinese rivals as well as former market leader Samsung to emerge as India’s No 1smartphone maker. Samsung, Oppo and Vivo trailed Xiaomi in the January-March period, according to IDC.

Oppo, Vivo, and Samsung are now responding. Oppo recently launched a new sub-brand last month called Realme, targeting consumers in the Rs 10,000-Rs 25,000 segment, recognising the opportunity. Vivo has launched five models in the segment in the last two months, while Samsung introduced four in the past few weeks.

The segment grew upwards of 34% last year, with sales of Samsung phones in this price range rising 41-42%, as per Gfk data, said Mohandeep Singh, senior vice president for mobile business, Samsung India. He expects the mid-priced segment to lead the market in 2018 as well, highlighting the reasons for the South Korean company’s focus.

“With all major players focusing on this segment given the growth potential here, competition will get tougher,” said Shobhit Srivastava, research analyst at Counterpoint Research. According to Counterpoint Research, the Rs 10,000-Rs 25,000 segment grew 49% in 2017 on-year for a share of 39% in the quarter ended March. While it dropped to 26% in the first quarter, analysts said that the flurry of launches in April-June is bound to drive up the growth rate in the coming quarters. The sub-Rs 10,000 segment accounted for 69% of the total market, while the segment above Rs 25,000 accounted for 5% as of March this year, Counterpoint added.

“Online aggressiveness by brands such as Xiaomi, absence of many options in below-Rs 10,000 segment and high-end specifications being brought by all players in this segment, besides dual camera and selfie marketing started by Vivo, Oppo, also added to the growth of this segment,” said IDC India’s associate research director Navkendar Singh.

 

Source:https://www.gadgetsnow.com/tech-news/xiaomi-samsung-are-fighting-it-out-in-the-rs-10000-rs-25000-smartphones-range/articleshow/64443577.cms

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