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The competition between smartphone making companies is intensifying with each company pushing the prices as low as they can afford. Indian marketplace is pegged as the fastest growing smartphone market in the world as reported by The Economic Times. As the competition continues, more and more smartphone makers will exit the market in 2017, according to a report by Counterpoint Research.
According to the research most new smartphone makers in the country are unable to earn the minimum amount of revenue required to sustain themselves. This comes right after the report presents us some numbers where Samsung has grown 15.8 percent from September 2016, Lenovo along with its Moto brand has reported an increase of share by 50 percent from last month. Xiaomi, the popular Chinese smartphone maker, has also reported a tremendous growth of 41.7 percent from last month.
Coming to the numbers generated by major Indian smartphone makers, Micromax has dropped 16.7 percent from last month along with Intex not showing any signs of growth. Both the companies are at the bottom of the pool regarding smartphone share, both in Tier 1 cities as well as Tier 2 and three cities.
The report suggests that seven new smartphone companies will enter the market in 2017 as nine companies will exit the market. These figures are striking, especially when compared to 13 new companies coming in the market with five leaving in 2016.
The problem with Indian companies is the lack of revenue or volume, which in turn limits them from expanding their smartphone range. Another factor is that the top 15 companies in the Indian smartphone market contribute up to almost 90 percent of the market share.
The signs of exits can only be predicted by recent exit of Microsoft and Acer along with Phicomm from the Indian smartphone market. Another major factor is the slowed growth of the Indian smartphone market as smartphone makers follow consumer’s decision not to move to smartphones from feature phones.