Lenovo beats Intex for third spot in India smartphone market

Lenovo models

Lenovo models
Chinese device maker Lenovo has grabbed the third spot in India smartphone market in 2015 — from Intex, according to Canalys.

Samsung is continuing in the first position. Micromax is the second largest smartphone vendor in the country.

Lenovo has been named as the top smartphone brand in online sales, as per the reports released by Flipkart.

The Chinese company had earlier this year revealed that it will be focusing on improving its offline / retail strategy. It expects a good proportion of smartphone sales to come from traditional channels for long term growth and viability.

Lenovo has introduced new smartphones in varying price slots, which are also available in in all its exclusive stores for computers.

Currently the company owns 1,000 exclusive retail stores. Lenovo has seen a robust growth in smartphones over the past year. Its India market share is about ten percent. Lenovo sells about 30,000-40,000 units per day, as per the company stats.

The Indian market is still being dominated by Samsung that accounts for about a fourth of the market.

Both Samsung and Lenovo are the leaders in the 4G handset sales in the country. 4G handsets accounts for about 3/4th of Lenovo’s smartphone portfolio.

Its mobile handset shipments have grown to eight million units (both Lenovo and Motorola devices) in 2015 as against 4.9 million in 2014, reveal the company reports of 2015.

Canalys said the Indian smart phone market saw a double-digit percentage increase in shipments year on year, despite sequential declines from some significant players.

Linda Sui, director at Strategy Analytics, said: “Globally, Lenovo-Motorola held on to fourth position with 5 percent global smartphone marketshare in Q4 2015, but its shipment growth rate declined 18 percent annually. The merger of Lenovo and Motorola has so far not been a success and the two firms’ combined smartphone shipments today are lower than when they first joined together in 2014.”

According to Canalys, Samsung extended its lead at the top of the market, with its devices accounting for around a quarter of the Indian smart phone market.

Indian smartphone maker Micromax held second place, with annual shipments falling by more than 20 percent, primarily due to inventory build-up in its distribution network.

Lenovo and Motorola’s combined shipments were short of 3 million units, up almost 60 percent, moving them past Intex to take third place in the market.

Along with Micromax, local players Intex, Karbonn and Lava all suffered sequential declines in shipments.

“Local players are finding it tough to compete with global vendors on product quality, making it hard for them to push products into higher price bands,” said Canalys Mobility Analyst Rushabh Doshi.

In addition, Chinese vendors, such as Vivo and Xiaomi, continue to make inroads with low-cost LTE smart phones.

Vina Krishnan