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Festive season propels Indian smartphone market

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KOLKATA: The festive season has pushed the Indian smartphone market with a quarter-on-quarter growth of 27 per cent in Q3 of the current calendar year 2014 to propel it as the largest growing smartphone market in the APAC region.

The overall mobile market stood at 72.5 million units in Q3 2014, registering a 15 per cent quarter-on-quarter growth and a 9 per cent year-on-year growth, according to the International Data Corporation (IDC).

“With 44 million units shipped in CY 2013 and the current market scenario hinting at 80 million plus shipments in CY 2014, we have a big chunk of end-user market which is awaiting refresh. To add to this, new initiatives on the 4G front are expected to be rolled out, which should spark up demand in the smartphone market in CY 2015,” said IDC India senior market analyst Karan Thakkar.

However, phablets are hitting a stagnancy which has been one of the key reasons for consumers opting for smartphones, the IDC said.

“With 6 per cent of the overall smartphone market, phablets are observed to be hitting a plateau. Smartphones are seen as the sweet spot for consumer preference. However, consumers need larger screen sizes to enjoy media content and with the 4G rollout expected in CY 2015, we expect the phablets segment to pick up again,” said IDC India research manager, client devices Kiran Kumar.

Interestingly, Micromax is fast crawling up to challenge Samsung, the market leader. Market share for Micromax stood at 20 per cent in Q3, up by two per cent from the previous quarter while Samsung’s market share is 24 per cent.

The Q3 results reveal the second consecutive quarter of over 80 per cent year-on-year shipment growth for smartphones, reflecting robust end-user demand for the category in the devices market in India.

The share of smartphones in the overall mobile phone market stood at 32 per cent in Q3 2014, which is a considerable increase over 19 per cent in the same period a year ago.

According to the Asia-Pacific (excluding Japan) Quarterly Mobile Phone Tracker, vendors shipped a total of 23.3 million smartphones in Q3 2014 compared to 12.8 million units in the same period of CY 2013.

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