Indian Mobile phone Brands to role the roost ?

India’s smartphone market was valued at $139 billion in 2021 and is set to hit $281 billion by 2028. Chinese smartphone makers have wiped Indian players clean off the market. Xiaomi, RealMe, Oppo dominate the Indian market. The development comes at a time when Chinese smartphone makers dominate the Indian market.

A recent development from the Government has reportedly come up with a plan to tame Chinese smartphone makers who now rule the roost in India. Indian brands are virtually non-existent, with the domestic players holding a total share of 1% in the market despite policy pushes by the government. It looks like India’s now trying the back door.

As per Counterpoint Research, the Indian smartphone brands together enjoyed less than 1 per cent share in the January to March quarter as compared to 45 per cent when they were at their peak in 2013 and 2014. Samsung is the only non-Chinese player doing better, is the market leader with lion’s share of 20 per cent share followed by the Chinese brigade – Vivo (17 per cent), Xiaomi (16 per cent), Oppo (12 per cent) and Realme (9 per cent) respectively.

The government has...directed them to appoint Indian contract manufacturers, increase local manufacturing down to the component level through joint ventures with Indian businesses, expand exports from the country and have local distributors, they said. Some of the companies have Chinese distributors, the report says.

China-based companies like Oppo, Vivo, and Xiaomi, among others, have been asked to induct Indian equity partners. They are being asked to appoint Indians in key roles, it said citing three unnamed people who were present when company executives and Indian government representatives met to discuss the matter.

Indian smartphone manufacturers Micromax, Karbonn and Lava - are planning for a major comeback in the smartphone segment at a time when Chinese brands are under government pressure and have also mostly vacated the entry level sub-Rs 8,000 price tag.

Brands said they hope to win back market share since consumers don’t have any choice in the entry level price whereby they are forced to buy either refurbished smartphones, on finance schemes or holding back on their purchases. Karbonn is looking to launch a smartphone priced at Rs 4999, while Micromax at Rs 5999 but in talks with telecom operators to bundle the handset at Rs 4999. Lava wants to launch more 5G smartphones at sub-Rs 10,000.

The fact is ,there is a vacuum in the sub-Rs 10,000 segment and the government too wants the Indian smartphone brands to make a comeback. 4G will remain for the next three years.

A subject matter expert revels, the government wants to ensure that the Chinese brands do not undertake pricing disparity by selling at a loss. “That’s the strategy they had adopted when they entered which wiped out the Indian brands. Now the things are showing positive and expected to have a level playing field .

S Mohini Ratna, Editor, VARINDIA