While Amazon and Flipkart are celebrating their growth during the ongoing festive sales, a new report by Canalys has shown that the online smartphone market in India is set to surpass 15 million units shipments in the third quarter of this year, growing 25 percent year-on-year and accounting for 38 percent it the total smartphone market in the country. The Singapore-headquartered market research firm has estimated that online channels, including Flipkart, Amazon.in, Paytm Mall, and Mi.com, grabbed 35 percent of the total smartphone sales in the country in the second quarter. Online marketplaces such as Amazon.in and Flipkart already dominated the Indian online smartphone market, whereas shipments during the quarter directly via vendors’ websites accounted for 9 percent of the total.
According to the Smartphone Analysis, October 2018 report by Canalys, smartphone sales through online channels in India have grown more than 65 percent year-over-year with 11.7 million units shipped in the second quarter. Flipkart, Amazon, and other retailers dominated the online channels in the second quarter with massive 91 percent share, while vendor websites such as Mi.com and OnePlus.com accounted for 9 percent of all online shipments during the quarter.
Canalys Analyst TuanAnh Nguyen notes that the Walmart-Flipkart deal and Alibaba’s investment into Paytm have “infused much need optimism in the industry” and making smartphones as the direct beneficient of the fresh investments. “Online retail is seeing fresh vigor in India,” Nguyen adds.
The traditional retail model in India is based on offline retail for a long time. However, smartphone vendors such as Xiaomi brought a change to the market. Canalys points out in its detailed analysis that as of the second quarter, 62 percent of smartphones were shipped to distributors in the country and eventually resold to lower-tier channel partners and retailers. Xiaomi has continued its domination on the online smartphone market with a 54 percent share, followed by Samsung at 13 percent and Huawei at 7 percent. The analyst firm also highlights Asus that was initially 100 percent distribution led, recently revamped its go-to-market strategy and set to move to 100 percent online-only in the coming months. The Taiwanese vendor already brought some offers during the ongoing Flipkart sale to persuade buyers. Moreover, the company is found to tripled its shipments sequentially from the first quarter to the second quarter.
Canalys also estimates that 64 percent of Xiaomi’s total smartphone business in the second quarter was driven by the online market. This scenario is even higher in the case of Honor and OnePlus that had 91 percent and 92 percent of their business online during the quarter.
On the festive sales, Canalys notes that the aggressive offers by Amazon and Flipkart are likely to “stimulate demand”. Young brands such as Poco and Realme are also expected to boost smartphone shipments in the next couple of quarters.
“There has been a marked shift in the go-to-market of various smartphone vendors in India and online retail is a big part of that change,” said Canalys Research Manager Rushabh Doshi, in the report revealing the analysis. “While it’s difficult to shake Xiaomi’s dominance, vendors have begun to build partnerships with leading e-commerce players and are challenging the status quo.”
Doshi adds that alongside the growth of the online smartphone market in India, Amazon and Flipkart are also expected to emerge as the “true winners.”
SpaceX Starlink beta test will continue into next year
SpaceX recently announced that it would continue beta testing its Starlink broadband Internet service into 2021. The announcement highlights a delay as the service was previously planned to roll out in 2020. It’s unclear exactly when, in 2021, the service will exit beta. As close as we have to a date at this point comes from a SpaceX engineer named … Continue reading
Spotify is testing Stories video feature with some major artists
Spotify is the latest platform to introduce a Stories feature, though it appears to only be available to a select number of big musical artists at this time. Spotify Stories first made an appearance earlier this year with the official name Storyline, one that was intended to let artists share stories-like content with fans. The company has confirmed this latest … Continue reading
YouTube for Android TV can stream in 8K for only a few
It seems like only yesterday when the market finally caught up with 2K and now TV makers and content publishers are already pushing 8K everywhere they can. It’s definitely going to take a lot of time before that even becomes as prevalent as 4K, especially considering the limitations when it comes to the availability of hardware and content. One such … Continue reading
David Prowse, the original Darth Vader, is dead at 85
David Prowse as Darth Vader and Carrie Fisher as Princess Leia filming the original “Star Wars.” Sunset Boulevard/Corbis via Getty...
Snapchat clones TikTok, India bans 43 Chinese apps, more data on App Store commission changes – TechCrunch
Welcome back to This Week in Apps, the TechCrunch series that recaps the latest in mobile OS news, mobile applications, and the...
Cretaceous birds were thought to have small bills—except this one
Enlarge / Artist’s depiction of Falcatakely forsterae. Given the unusual attention granted to turkeys this week, let’s talk dinosaurs. Today’s...
The ungentle joy of spider sex
Enlarge / Look carefully into the spider’s two largest eyes and you can see internal structures similar to the ones...
How to With John Wilson is the year’s best nature documentary
How to With John Wilson airs Fridays on HBO At this point, it’s practically mandatory for any show set in...
Social10 months ago
CrashPlan for Small Business Review
Gadgets2 years ago
A fictional Facebook Portal videochat with Mark Zuckerberg – TechCrunch
Mobile2 years ago
Memory raises $5M to bring AI to time tracking – TechCrunch
Social2 years ago
iPhone XS priciest yet in South Korea
Cars2 years ago
What’s the best cloud storage for you?
Security2 years ago
Google latest cloud to be Australian government certified
Cars2 years ago
Some internet outages predicted for the coming month as ‘768k Day’ approaches
Social2 years ago
Apple’s new iPad Pro aims to keep enterprise momentum