Mobile phone landscape - India H1 2016

Mobile phone landscape: India H1 2016Launch and search trends

The #1 Gadget Research Website in India

Nitansh Rastogi, Correspondent

Is the industry reaching saturation point?

BIGTRENDS

3

The number of phone launches reduced for the first time in

three years

Number of phone launches

492

648

857

606

0

200

400

600

800

1000

H1 2013 H1 2014 H1 2015 H1 2016

4

The number of brands competing in the market increased,

but only marginally

67 73

127 132

0

20

40

60

80

100

120

140

H1 2013 H1 2014 H1 2015 H1 2016

Number of brands operating in the market

5

The mid-range segment (Rs 10k-20k) got the most eyeballs

Below Rs 5k11%

Rs 5k-10k31%

Rs 10k-20k42%

Rs 20k-30k8%

Above Rs 30k7%

Most popular price segments as per user views in H1 2016

6

Phone launches declined in all price ranges except the

above Rs 30k segment

605

169

51 17 15

425

102

50 12 170

100

200

300

400

500

600

700

Below Rs 5k Rs 5k-10k Rs 10k-20k Rs 20k-30k Above Rs 30k

H1 2015 H1 2016

Number of phone launches across price segments

7

The entry-level (under Rs 5k) and mid-range (Rs 10-20k)

segments saw the most increase in user interest

4%11%

46% 31%

33%42%

12% 8%

5% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

H1 2015 H1 2016

Popularity of price segments as per user views (H1 2015 vs H1 2016)

Above Rs 30k

Rs 20k-30k

Rs 10k-20k

Rs 5k-10k

Below Rs 5k

67%

275%

127%

66%

140%

8

The entry-level segment (under Rs 5k) has grown the fastestFirst time buyers driving demand?

Below Rs 5k

11%

Above Rs 5k89%

Below Rs 5k4%

Above Rs 5k96%

User views by price point (H1 2015) User views by price point (H1 2016)

9

Popularity

Rank in 2016

Brand Change in the brand’s

rank from H1 2015

1 Samsung 0

2 Lenovo 2

3 Xiaomi 2

4 Micromax 2

5 HTC 2

6 ASUS 1

7 LeEco * New entrant

8 Intex 0

9 Coolpad New entrant

10 Gionee 1

Top 10 most popular phone brands in H1 2016

signs of shake-up in the traditional pecking order

Brand Rank in H1

2015

Sony 6

Nokia 8

Lava 10

Brands that exited from the

top 10 list

*LeEco is the only brand to make it to the top 10, in its debut year

10

Share of voice of popular brands in H1’16 vs H1’15

most brands except the top 3 are facing the heat

Top brands in terms of user views in H1 2015 vs H1 2016

13.9%

7.3%

5.4%

9.5%

8.1%

4.8%3.9% 4.0%

17.9%

11.6%11.2%

7.7%

4.5%

3.3% 3.3% 3.1% 3.0% 2.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Samsung Lenovo Xiaomi Micromax HTC ASUS LeEco Intex Coolpad Gionee

H1 2015 H1 2016

11

In the midst of increasing competition, the top 3 brands are

pulling away from the pack

Top 332%

Rest68%

Share of user views for top 3

brands vs others

(H1 2015)

Top 341%

Rest59%

Share of user views for top 3

brands vs others

(H1 2016)

12

Fragmentation in the market reduces with increase in price

point, as fewer brands are able to compete

Split of user searches across price points (H1 2016)

45%

59% 55%

67%

81%

55%

41% 45%

33%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Below Rs 5k Rs 5k-10k Rs 10k-20k Rs 20k-30k Above Rs 30k

Share of top 5 brands in the segment Share of other brands

13

Top 5 gainers: brands that grew most in popularity vs. last yearOPPO is the fastest growing brand

387%

217%

119%

73%

40%

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

OPPO vivo Xiaomi Motorola OnePlus

Note: Brands like LeEco and Coolpad were not present in the market in H1 2015, and hence

weren’t part of this analysis

% growth in user views in H1 2016 over H1 2015

14

Top 5 brands that declined in popularityYesteryear’s popular brands are dying a slow death, while

Micromax’s YU has been unable to repeat its success this year

-87%

-60% -59%

-53%-49%

-100%

-90%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

Nokia Blackberry Microsoft YU Karbonn

% fall in user views in H1 2016 over H1 2015

15

The Chinese offensive: popularity share of Chinese-origin

brands doubled at the expense of others

Share of user views by brand origin

(H1 2015)

Indian brands

20%

Chinese brands

44%

Other International

brands36%

Share of user views by brand origin

(H1 2016)

Indian brands – brands originated from India such as Micromax, Intex and Lava

Chinese brands – brands originated from China such as Lenovo, Xiaomi and Gionee

Other International brands – brands apart from the above two such as Samsung, HTC and Sony

Indian brands

28%

Chinese brands

22%

Other International

brands50%

16

Top 10 Chinese brands: Lenovo and Xiaomi dominate… for

now

Popularity Rank

among Chinese

brands

Brand % share of user

views among all

Chinese brands

1 Lenovo 27.6%

2 Xiaomi 26.6%

3 LeEco 7.9%

4 Coolpad 7.0%

5 Gionee 7.0%

6 OPPO 5.5%

7 Vivo 3.7%

8 OnePlus 2.7%

9 Honor 1.6%

10 Meizu 1.2%

17

Change in distribution models: most online-only brands are

moving offline

S. No. Brand Distribution model in H1

2015

Distribution model in H1

2016

1 Xiaomi Online-only Started moving offline

2 ASUS Online-only Started moving offline

3 Motorola Online-only Started moving offline

4 YU Online-only Started moving offline

5 OnePlus Online-only Online-only

Top 5 online-only brands in H1 2015 and their distribution strategy

OnePlus is the only major brand holding firm to its online-only model

18

Change in distribution models: traditional brands are joining

the online-only bandwagon

S. No. Brand Distribution model in H1

2015

Distribution model in H1

2016

1 Samsung Offline + OnlineTraditional model, plus a few

online-only launches

2 Lenovo Offline + OnlineTraditional model, plus a few


3 Micromax Offline + OnlineTraditional model, plus a few


4 HTC Offline + Online Offline + Online

5 Intex Offline + Online Offline + Online

19

The chart toppers – the top three most popular phones in

H1 2016

Xiaomi Redmi

Note 3 Price: Rs 11,999

Launched in:

Mar 2016

Lenovo K4 NotePrice: Rs 11,999

Launched in:

Jan 2016

#1

On the basis of popularity on 91mobiles.com

Samsung Galaxy J7Price: Rs 14,999

Launched in:

Jul 2015

#2#3

What the brands were up to in H1 2016 >

BRANDEQUITY

21

Top brands by number of phone launches in the sub-Rs 5k segment (in H1 2016)

Phone launches by brands in the entry-level segment

(below Rs 5k): Indian brands lead the charge

31

2221

2018

1514 14

108

Intex Videocon Lava Micromax Zenmobiles

Karbonn Sansui iBall Adcom Jivi

Indian brands International brands

22

Top brands by number of phone launches between Rs 5,000 and 10,000 (in H1 2016)

Phone launches by brands in the budget (Rs 5k-10k)

segment: International brands are making their presence felt

11

10

8

5

4 4 4

3 3 3

Intex Lava Micromax Panasonic iBall Videocon InFocus Karbonn Gionee ASUS


23

Top brands by number of phone launches above Rs 10,000 (in H1 2016)

Phone launches by brands above Rs 10,000: international

brands dominate

8

6 6 6

4 4 4

3 3 3

Samsung HTC Lenovo Motorola Gionee LG LeEco OPPO vivo Zopo


24

Shift in strategy: Top-tier brands are focusing their might on

fewer device launches

0

1

2

2

4

1

5

7

2

6

0 2 4 6 8

Below Rs 5k

Rs 5k-10k

Rs 10k-20k

Rs 20k-30k

Above Rs 30k

0

1

6

0

0

0

6

2

0

0

0 2 4 6 8

20

8

2

0

0

27

9

4

0

0

0 10 20 30

H1 2015

H1 2016

Lenovo Micromax

No of phones launched by key brands in H1 2015 and H1 2016

Samsung

25

Most popular brands in the entry-level segment (below Rs

5k)

Micromax15%

Intex10%

Karbonn7%

Lava6%

Samsung6%

Others 55%

Top brands in the below Rs 5k segment (in terms of % of user searches)

26

Most popular brands in the budget segment (Rs 5k-10k)

Samsung20%

Micromax14%

Xiaomi9%

Coolpad9%

Lenovo7%

Others 41%

Top brands in the Rs 5k-10k segment (in terms of % of user searches)

27

Most popular brands in the mid-range segment (Rs 10k-

20k)

Lenovo21%

Xiaomi19%

Samsung14%LeEco

6%ASUS

5%

Others45%


28

Most popular brands in the premium segment (Rs 20k-30k)

Samsung34%

HTC16%

OnePlus11%

Sony10%

OPPO6%

Others33%


29

Most popular brands in the super-premium segment (above

Rs 30k): Samsung and Apple dominate

Samsung34%

Apple18%

LeEco10%

HTC10%

Sony10%

Others 19%

Top brands above Rs 30k (in terms of % of user searches)

Find out which devices ruled the roost >

DEVICEPOPULARITYCHARTS

31

Top 10 devices in H1 2015: budget and mid-range

smartphones got the most eyeballs

Rank Mobile name Price band

Percentage

share among

top 10 devices

Launched in

1 Xiaomi Redmi Note 3 10-20k 28% Mar 2016

2 Lenovo K4 Note 10k-20k 15% Jan 2016

3 Samsung Galaxy J7 10k-20k 12% July 2015

4 LeEco Le 1s 10k-20k 9% Feb 2016

5 Xiaomi Redmi Note 3 16GB 5k-10k 7% Mar 2016

6 Samsung Galaxy On7 5k-10k 7% Nov 2015

7 Samsung Galaxy J5 5k-10k 6% July 2015

8 Lenovo K3 Note 10k-20k 6% June 2015

9 Coolpad Note 3 10k-20k 5% Oct 2015

10 Coolpad Note 3 lite 5k-10k 5% Jan 2016

Top 10 devices in H1 2016 in terms of user views

The Redmi Note 3 got more searches than the next two devices combined

32

Most popular devices in the Rs 5-10k segment: Xiaomi

leads, but Coolpad is making a mark as well

Xiaomi Redmi

Note 3 16GBLaunched in:

Mar 2016

Samsung

Galaxy On7Launched in:

Nov 2015

Coolpad

Note 3Launched in:

Oct 2015

Coolpad

Note 3 LiteLaunched in:

Jan 2016

Samsung

Galaxy J2Launched in:

Sept 2015

Top 5 most popular devices in the Rs 5,000 – 10,000 segment in H1 2016

#1#2

#3#4

#5

33

Most popular devices in the Rs 10-20k segment: Xiaomi,

Lenovo & Samsung dominate

Samsung


Jul 2016

LeEco Le 1sLaunched in:

Jan 2016

Samsung


Jul 2015

Lenovo K4

NoteLaunched in:

Jan 2016

Xiaomi Redmi

Note 3 32GBLaunched in:

Jan 2016

#4#3

#2 #1

#5


34

#1#2

#3#4

#5

Most popular devices in the Rs 20-30k segment: Samsung

dominates

Samsung Galaxy

A5 (2016)Launched in:

Feb 2016

Samsung

Galaxy A8Launched in:

Aug 2015

Samsung

Galaxy A7

(2016)Launched in:

Feb 2016

HTC Desire

826Launched in:

Apr 2015

OnePlus 2Launched in:

Aug 2015


35

#4#3

#2 #1

#5

Most popular devices priced above Rs 30k: Samsung &

Apple dominate; LeEco makes a mark in its debut year

Apple iPhone

6Launched in:

Oct 2014

LG G5Launched in:

Jun 2016

Apple iPhone

6SLaunched in:

Oct 2015

LeEco Le MaxLaunched in:

Feb 2016

Samsung

Galaxy S7Launched in:

Mar 2016

Top 5 most popular devices above Rs. 30,000 in H1 2016