Xiaomi tops Indian smartphone market for eighth straight quarter – gpgmail


Xiaomi has been Indian’s top smartphone seller for eight straight quarters. The company has become a constant headache for Samsung in the world’s second largest smartphone market as sales have slowed pretty much everywhere else in the world.

The Chinese electronics giant shipped 10.4 million handsets in the quarter that ended in June commanding 28.3% of the market, research firm IDC reported Tuesday. Its closest rival, Samsung — which once held the top spot in India — shipped 9.3 million handsets in the nation during the same period, settling for a 25.3% market share.

Overall, 36.9 million handsets were shipped in India during the second quarter of this year, up 9.9% from the same period last year, IDC reported. This was the highest volume of handsets ever shipped in India for Q2, the research firm said.

As smartphone shipments slow or decline in most of the world, India has emerged as an outlier that continues to show strong momentum as tens of millions of people purchase their first handset in the country each quarter.

Research firm Counterpoint told gpgmail that there are about 450 million smartphone users in India, up from about 350 million late last year and 300 million in late 2017. This growth has made India, home to more than 1.3 billion people, the fastest growing market worldwide.

Globally, meanwhile, smartphone shipments declined by 2.3% year-over-year in Q2 2019, according to IDC.

Chinese phone makers Vivo and Oppo, both of which spent lavishly in marketing during the recent local favorite cricket season in India, also expanded their base in the country. Vivo had 15.1% of the local market share, up from 12.6% in Q2 2018, while Oppo’s share grew from 7.6% to 9.7% during the same period. The market share of Realme, which has gained following after it started to replicate some of Xiaomi’s early model, also shot up, moving from 1.2% in Q2 2018 to 7.7% in Q2 2019.

Samsung showroom demonstrator seen showing the features of new S10 Smartphone during the launching ceremony. (Photo by Avishek Das/SOPA Images/LightRocket via Getty Images)

The key to gaining market share in India has remained unchanged over the years: better specs at lower prices. The average selling price of a handset during the Q2 was $159 in the quarter that ended in June this year. Seventy-eight percent of the 36.9 million phones that shipped in India sported a sticker price below $200, IDC said.

That’s not to say that phones priced above $200 don’t have a market in India. Per IDC, the fastest growing smartphone segment in the nation was priced between $200 to $300, witnessing a 105.2% growth over the same period last year.

Smartphones priced between $400 and $600 were the second-fastest growing segment in the country, with a 16.1% growth since the same period last year. Chinese phone maker OnePlus assumed 63.6% of this premium segment, followed by Apple (which has less than a 2% market share) and Samsung.

Feature phones that have maintained a crucial position in India’s handsets market continue to maintain their significant footprint, though their popularity is beginning to wane. 32.4 million feature phones shipped in India during Q2 this year, down 26.3% since the same period last year.

India has become Xiaomi’s biggest market. It entered the country five years ago, and for the first two, relied mostly on selling handsets online to cut overhead. But the company has since established and expanded its presence in the brick and mortar market, which continues to account for much of the sales in the country.

Earlier this month, the Chinese phone maker said it has set up its 2,000th Mi Home store in India. It is on track to have presence in 10,000 physical stores in the country by end of the year, and expects to see half of its sales come from the offline market by that time frame.

Samsung has stepped up its game in India in last two years, as well. The company, which opened the world’s largest phone factory in the country last year, has ramped up productions of Galaxy A series of smartphones that are aimed at budget conscious customers and conceptualized a similar series that includes Galaxy M10, M20, and M30 smartphone models for the Indian market. The Galaxy A series handsets drove much of the growth for the company, IDC said.

Even as it lags behind Xiaomi, Samsung shipped more handsets in Q2 2019 compared to Q2 2018 (9.3 million vs 8 million) and its market share grew from 23.9% to 25.3% during the same period.

“The vendor was also offering attractive channel schemes to clear the stocks of Galaxy J series. Galaxy M series (exclusive online till the end of 2Q19) saw price reductions which helped retain the 13.5% market share in the online channel in 2Q19 for Samsung,” IDC said.

But the South Korean giant continues to have a tough time passing Xiaomi, which continues to maintain low profit margins (Xiaomi says it only makes 5% profit on any hardware it sells). Xiaomi has also expanded its local production efforts in India and created more than 10,000 jobs in the country, more than 90% percent of which have been filled by women.


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Netflix’s big problem and Apple’s thinnest product yet – gpgmail


Hey. This is Week-in-Review, where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on gpgmail this week to surface my favorites for your reading pleasure.

Last week, I talked about the Capital One breach and how Equifax taught us that irresponsible actions only affect companies in the PR department.


Thomas Trutschel/Photothek via Getty Images

The big story

Disney is going to eat Netflix’s lunch.

The content giant announced this week that when Disney+ launches, it will be shipping a $12.99 bundle that brings its Disney+ streaming service, ESPN+ and ad-supported Hulu together into a single-pay package. That price brings those three services together for the same cost as Netflix and is $5 cheaper that what you would spend on each of the services individually.

This announcement from Disney comes after Netflix stuttered in its most recent earnings, missing big on its subscriber add while actually losing subscribers in the U.S.

Netflix isn’t the aggregator it once was; its library is consistently shifting, with original series taking the dominant position. As much as Netflix is spending on content, there’s simply no way that it can operate on the same plane as Disney, which has been making massive content buys and is circling around to snap up the market by acquiring its way into consumers’ homes.

Disney has slowly amassed control of Hulu through buying out various stakeholders, but now that it shifts the platform’s weight, it’s pretty clear that it will use it as a selling point for its time-honed in-house content, which it is still expanding.

The streaming wars have been raging for years, but as the services seem to become more like what they’ve replaced, Disney seems poised to take control.

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On to the rest of the week’s news.

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Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • Apple Card rolls out
    Months after its public debut, Apple has begun rolling out its Apple Card credit card. We got our hands on the new Apple Card app, so check out more about what it’s like here.
  • Amid a struggling smartphone market, Samsung introduces new flagships
    The smartphone market is in a low-key free fall, but there’s not much for hardware makers to do than keep innovating. Samsung announced the release of two new phones for its Note series, with new features including a time-of-flight 3D scanning camera, a larger size and… no headphone jack. Read more here.
  • FedEx ties up ground contract with Amazon
    As Amazon rapidly attempts to build out its own air fleet to compete with FedEx’s planes, FedEx confirmed this week that it’s ending its ground-delivery contract with Amazon. Read more here.

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

  1. Facebook could get fined billions more:
    [Facebook could face billions in potential damages as court rules facial recognition lawsuit can proceed]
  2. Instagram gets its own Cambridge Analytica:
    [Instagram ad partner secretly sucked up and tracked millions of users’ locations and stories]

Extra Crunch

Our premium subscription service had another week of interesting deep dives. My colleague Sarah Buhr had a few great conversations with VCs in the healthtech space and distilled some of their investment theses into a report.

Why is tech still aiming for the healthcare industry? It seems full of endless regulatory hurdles or stories of misguided founders with no knowledge of the space, running headlong into it, only to fall on their faces…

It’s easy to shake our fists at fool-hardy founders hoping to cash in on an industry that cannot rely on the old motto “move fast and break things.” But it doesn’t have to be the code tech lives or dies by.

So which startups have the mojo to keep at it and rise to the top? Venture capitalists often get to see a lot before deciding to invest. So we asked a few of our favorite health VC’s to share their insights.

Here are some of our other top reads this week for premium subscribers. This week, we talked about how to raise funding in August, a month not typically known for ease of access to VCs, and my colleague Ron dove into the MapR fire sale that took place this week:

We’re excited to ramp up The Station, a new gpgmail newsletter all about mobility. Each week, in addition to curating the biggest transportation news, Kirsten Korosec will provide analysis, original reporting and insider tips. Sign up here to get The Station in your inbox beginning this month.




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