India Smartphone shipment shrinks due to GST

As per the news report, Canalys, a market research firm has reported that smartphone market has contracted for the first time in India. The report highlights that shipment of smartphone fell by 4% year-on-year to 27 million units in the country. This drop in the shipment is mainly due to the implementation of GST which took place on July 1,2017.

talking about the impact of GST, Rushabh Doshi, Canalys Analyst said that the entire market is confused over GST and a lack of awareness about the changes that are needed. He also added that the market has adopted a wait-and-see policy as the distributors and retailers are apprehensive about the impact on prices.

Other research firm reports show that Chinese smartphone vendors have dominated the India market in Q2 2017. According to the shipments, Samsung has maintained its position with 25% market share followed by Xiaomi with 4.8 million units, Vivo with 3.4 million units, Oppo took over the fourth position from Lenovo and the later managed to be in top five position with 1.9 million units shipped in the second quarter of the year.

The research firm is optimistic about the recovery of the smartphone market and said it will recover and will be stronger than before.

Tags: India Smartphone shipment, gst, india smartphone market, canalys a market research firm