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.

Comments

Post a Comment

Popular posts from this blog

Colonialism and its impact on world economic order

Image
Have you ever wondered why African countries are still underdeveloped or developing. Most of the former colonies still lag behind in technological development and their economies are not yet mature. So, we'll try to understand the post-colonial world economic system from Marxist perspective. First will try to understand what is colonialism ? The policy of acquiring political control of a country and exploiting it in such a way that it completely alters the economic structure of that country and destroys its industries, manufacturing and trading sector and the country remains only the supplier of raw material with all other sectors disabled. How the sectors were destroyed is a topic of discussion for another article. Explaining briefly, the colonizers used to gain the political control of the colony, procure the raw materials from the territory and send it to their country to manufacture finished goods while barring the entry of all other European traders into their colony for tradi...
Read more

Money Multiplier

Money is primarily used to quantitatively measure the value of goods or services and supply of money plays an important role in the determination of inflation and interest rates. As the name suggests, money multiplier means ‘some’ supply of money creates a multiplier effect. Let’s see it in detail. Now let’s say there is a country called “Gokul Dham” and this country has infinite banks and infinite population but one central bank and the central bank has deposited Rs 100 in one bank named Bank#1. We know that all the deposits in the bank are the bank's liability since they are obliged to give it back to the depositors at some point in time and loans are the bank's asset. Let’s consider for the sake of understanding that the Cash Reserve Ratio is 10%. Cash Reserve ratio (CRR) is the proportion of money that banks are asked by the RBI to keep with themselves i.e they have to maintain some cash reserve with themselves and can’t loan all the money they have. Bank#1 can now loan Rs ...
Read more

Fiscal policy: Tool for economic stability and growth

In the realm of economics, fiscal policy plays a pivotal role in shaping a country's economic landscape. While monetary policy falls under the purview of the Reserve Bank of India (RBI), fiscal policy is primarily in the domain of Finance Ministry.  Fiscal policy deals with following activities: Revenue management Expenditure management Borrowing strategies All these activities are aimed at mobilizing resources, fostering growth, reducing inequality, and stabilizing the economy. In this article, we delve into the intricacies of fiscal policy.  The Union budget is prepared in two heads namely revenue account and capital account of the budget.  Revenue account contains revenue receipts and revenue expenditure while the capital account contains capital receipt and capital expenditure. Let's see what these accounts actually mean.  Revenue receipts : Revenue receipts are the day-to-day earnings of a government, and the source these income can be from taxation or from the ...
Read more