The COVID-19 pandemic has hit us in ways we couldn't even imagine. It is indeed ironic, that the air is pollution-free, yet we need to wear masks. The effects of this pandemic are far ranged, and it has also affected the ever-growing Indian Smartphone market.
India had surpassed the US in January of this year, into becoming the second-largest smartphone market in the world. The pole position is currently occupied by China, where most smartphones are born.
According to data from CounterPoint Research, the major chunk in the market is taken up by Chinese Smartphone Makers.
Here are the numbers:
Companies like Realme and Oppo have doubled their market share in 1 year, and it is not at all surprising to see only the Chinese companies grow. Flagship specifications, aggressive advertising and marketing, brilliant after-sales services are only a few reasons why these Chinese Smartphone makers are having a strong foothold over the Indian market.
Take the example of the POCO M2 Pro. The main highlight of this smartphone is its extremely fast charging capabilities. It has a 33W fast charger, that not even what the latest Samsung's or Apple's can offer. And the cost? A consumer-friendly $200! And the best part is, it is the second-fastest charging phone in the world! And it isn't surprising at all that the pole position is occupied by another Chinese company, OPPO.
When it comes to performance to cost ratio, these Chinese smartphones rank VERY much higher compared to their non-Chinese counterparts. Not many would go against me if I say that Apple and Samsung have the lowest ratio.
One of the main reasons why these Chinese phones are a mainstay in India is because of the aggressive pricing that benefits everyone. These manufacturers, through their cut-throat competition, help lower prices of these smartphones, offering consumers good quality smartphones at cheap prices. This has helped India become Digitally Literate. Nowadays, it is not uncommon to see smartphones in the hands of almost every individual, rich or poor. In a way, these smartphone makers are truly helping our country achieve its goals!
Now, what is the reason that these smartphones which offer great performance, are priced cheaply?
The first reason surely has to be cheap labour. According to a survey conducted by Deloitte, China offers one of the cheapest labours in the world, second only to Taiwan. The second reason is the cheap manufacturing costs. But these factors are obvious to almost every company which manufactures in China. So, what is the actual difference? Well, it all boils down to one reason!
Business Model.
It is important to note that the cost of these phones can be reduced to the maximum when companies market their phones in the best possible way. A significant chunk of the money is given to retailers, distributors and carrier partners. But these Chinese companies are looking to avoid this by mainly signing with a single online partner, bare minimum offline presence, flash sales, etc. Considering all these factors, along with the main motive of gaining a significant market share by getting a huge fan following, these companies have been able to do the undoable!
The Indian Prime Minister is promoting “Atmanirbhar Bharat", to utilise this opportunity to lure in the big manufacturers who are moving out of China, towards India. No doubt, this will surely have a positive impact on the Indian economy. But is it something that India can achieve in a short time? That is something to speculate on.
With the recent banning of 59 apps from the Google Play Store and the Apple App Store, it looks very likely that even Chinese smartphones may have a boycott!
Let us list out some of the popular brands in India:
1. Xiaomi
2. Oppo
3. Vivo
4. Oneplus
5. Apple
6. Huawei
7. Lenovo
8. Samsung
9. Apple
10. Asus
Oppo, Vivo and Oneplus are under the same parent company, BBK Electronics, a Chinese electronics major. Oppo’s sub-brand is Realme, Vivo’s sub-brand is iQOO, Xiaomi’s sub-brand is POCO and Lenovo’s sub-brand is Motorola.
Now, let’s sort them out into Chinese owned and Non-Chinese owned smartphone:
Chinese Owned: Non-Chinese Owned:
1. Xiaomi 1.Samsung(South Korean)
2. Oppo 2.Apple(American)
3. Vivo 3.Asus(Taiwanese)
4. Oneplus
5. Huawei
6. Lenovo
Some of these smartphone makers have manufacturing plants in India, which helps generate employment and thus boosting income in the economy. Although most of these smartphone makers claim the “Make in India” tag, it is important to note that these smartphones are merely “assembled” in India. All these companies are still dependent on China for major electronic components.
What we must understand, is that boycotting Chinese smartphones may sound all patriotic in the short term. But this may not at all work out for India, which is slowly growing in the electronics manufacturing sector. We still have a lot to learn from the global leaders in electronics manufacturing, and we can only learn if we do allow them to grow and thrive in our country’s market. Whenever companies like Foxconn set up a factory in India, they also bring in important technical resources which will help in our setting up of manufacturing units.
So, to be truly self-reliant, our country needs investments in the electronics manufacturing sector. This will surely take time, but the government is heading in the right direction to realise this mission. Samsung had set up the world’s biggest mobile phone factory in Noida in the year 2018. This indeed looks promising! Apple is soon to come to India, which means that iPhones won’t be far fetched anymore to the average consumer.
I believe that shortly, perhaps a year or two, there will be a decline in the sales of these Chinese phones. After that, there might be a sudden boost in sales, considering their intent to get back into the market they were originally thriving. But, with the release of the cheapest iPhone, will Apple mend its ways into becoming truly consumer-friendly? Will the other non-Chinese Android manufacturers capture this void that may be left by the Chinese ones? Or will the Chinese phones continue to thrive as they are? These are some questions that only time can answer!
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