According to research firm CMR, the mobile phone shipment is expected to touch 265 million in 2016. The feature phones form part of 59 percent of the overall market. The report reveals that 116 million out of the total 265 million are estimated to be smartphones.
By the end of Q3 2016, nearly 78.4 million handsets were shipped. However, for the total nine months ended September 2016, the total mobile phone shipment accounted to 197.5 million.
The CMR report discloses that in line with previous insights the Q3 2016 ended with a strong reaffirmation of the fact that it would take a longer than expected time for India to become a smartphone-only market.
Feature phones account for 59 percent market share
However, feature phones still form part of 59 percent of the overall market. Hence, it cannot be wiped off from the retail market. We believe that senior citizens still make use of feature phones and are not ready to accept smartphones.
Commenting on the development, CMR Principal Analyst (Telecoms) Faisal Kawoosa said that there is a mismatch between the technology roadmap and the user priorities. The mobile ecosystem is working on to make data services more affordable, accessible and meaningful for the subscribers. However, the majority of the population is still looking for reliable voice communication.
Emerging trend forcing Reliance Jio to manufacture 4G VoLTE handsets
Kawoosa added that this kind of trend is forcing emerging networks such as Reliance Jio to launch VoLTE-enabled 4G smartphones under Rs. 2000. This will not only enable them to tap the budget segment but also provide effective services with strong connectivity.
Despite Galaxy Note 7 fiasco, Samsung still holds the ground in the mobile arena with 24.5 percent market share. This includes both feature phone and smartphone categories. While Lava holds 9.7 percent share, home-grown Intex is positioned at 9.3 percent.
When it comes to smartphones category, Lenovo holds the second spot with 10.4 percent market share. The company is followed by Micromax with 7.5 percent share. When you look at the feature phones, Lava gains over Intex with 12.3 percent share compared to 11 percent for Intex.
The report also reveals an interesting fact that nearly 66 percent of the phones shipped during Q3 2016 were manufactured under Make in India initiative. This is because companies like Xiaomi and Coolpad are already manufacturing new smartphones from their India facility.