Indian smartphone market and Chinese brands alternative.

The Indian smartphone market is about $28.5 Billion as per a 2018 report and a 2019 report indicates an 8% year-over-year growth. In layman's term if last year sales were worth $100 this year's sales will be of $108.
As of Jan 2020 report, India's digital population is approximately around 700+ million, 2nd in the world and is rising rapidly supported by cheap data and various government initiatives. Seems quite a big market, isn't it?

4 of the top 5 companies that dominate the Indian smartphone market are Chinese and these top 5 brands capture almost 85-90% of the Indian market share (as of 2019). 



Let's see how the US and the global market look like.

 
Here we observe that Samsung and LG other than Apple are non-Chinese big market players in the smartphone industry. It is found that 30-40% of the smartphones sold in India are in the range of 10k-18k and is the fastest-growing segment. For the matter of mid-range smartphones, Samsung and LG have a huge opportunity if they price and market their products aggressively amid the anti-China sentiments in India. Lessons can be learned from Realme series about how they priced and marketed their product against Xiaomi and is now one of the fastest-growing brand in India in the mid-range segment.

Recent Developments:
 
The demand for LG smartphones rose by 10X this month so the company is planning to boost it's production by 15X by this Diwali and has registered for PLI scheme while the Chinese smartphone brands have put their investments on hold.




PLI scheme offers production-linked incentives to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units. Govt. will provide 4-6% of financial incentives based on investments and incremental sales requirement in the scheme.

All in all, let's see how does the Indian smartphone market structure changes in the coming years.

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