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According to a report by analyst company Canalys, the Indian smartphone market grew by 12% year on year, with 24.4 million units shipping in Q1 2016.

With no shocking news, the list of top five vendors includes Samsung, followed by Micromax, Intex, Lenovo, and Lava.Lenovo grew the most, mainly due to its value-for-money handsets and offline channel strategy – its shipments were up 63 percent

While, Lenovo tops the companies with the fastest growth and the main reason expected is its value-for-money handsets and offline channel strategy. The shipments of Lenovo were up 63 percent in Q1 2015.Established international brands Microsoft, BlackBerry, Sony and LG were the biggest losers as the market shifted toward low-cost and value-for-money handsets.

On the other hand, the established international brands like Microsoft, BlackBerry, Sony, and LG were the biggest losers as the market shifted toward low-cost and value-for-money handsets.

“Over the past 18 months, India’s smartphone market has been rocked by dramatic changes. The rise of online channels, the arrival of new international vendors (particularly from China), the move to LTE and the desire for higher-quality devices have all had a big impact. Indian companies have struggled as incoming vendors have been quicker to address these trends,” said Ishan Dutt, Research Analyst at Canalys.

“Micromax, in particular, has been through tough times, with key executives leaving. Now the company is aiming to revamp its strategy to incorporate an ecosystem of services around payments and content,” he further added.

The second top smartphone vendor around the country, Micromax has received a fell in market share by a couple of percentage points to 16.7 percent in Q1 2016.

Apple Inc., securing the eighth position in the list, continued to climb across the country. It has been reported an increase in shipments by 56 percent, which makes the Cupertino giant as the second fastest-growing vendor in India, despite the fact that global iPhone sales took a hit this quarter.

“Apple is outperforming the overall market in India, and still has great growth potential,” said Canalys Mobility Analyst Wilmer Ang.

Though Samsung is the top vendor of the country, but for the devices over $300 (~Rs. 20,000) the company’s market share fell from 66 percent in Q1 2015 to 41 percent in Q1 2016, while Apple grew its market share from 11 percent to 29 percent. Successive price cuts to the iPhone 5s made it the most popular Apple device on the market, despite its smaller screen and outdated hardware.

Meanwhile, constant reduction in prices of iPhone 5s has made it the most popular Apple device in the market, despite its smaller screen and outdated hardware.

Ang added, “Apple’s growth run could be short-lived. The 5s success in India has more to do with the affordability of a premium brand than a preference for smaller phones, and the move to the more expensive SE will discourage budget buyers. Also, the recent government regulation curbing discounts on smartphones sold by online platforms will affect demand.”

Over the rest of the year, Canalys expects to see more vendors partnering with financing establishments, which will help boost overall affordability and ensure growth in a cost-conscious market.

The report by Canalys clearly suggests that Indian smartphone market is highly price sensitive market and majorly smartphones within the sub-category Rs. 20,000 are getting a significant response. Hence, the manufacturers have to focus on such segment to generate a healthy revenue.

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