New Delhi, Oct 27: India has become the second largest smartphone market in the world, a report from Canalys said on Friday. “India has now overtaken the United States to become the world’s second-largest smartphone market after China,” the report said. It claimed that the smartphone shipment in India crossed the 40 million mark for the first time in Q3 2017 with 23 per cent annual growth.

India now stands at over 1.3 billion while the U.S. is around 320 million. China, however, is at 110 million shipments per quarter. “This growth comes as a relief to the smartphone industry. Doubts about India’s market potential are clearly dispelled by this result,” said Canalys Research Analyst Ishan Dutt in a statement.

“There are close to 100 mobile device brands sold in India, with more vendors arriving every quarter. In addition, India has one of the most complex channel landscapes, but with low barriers to entry. Growth will continue. Low smartphone penetration and the explosion of LTE are the main drivers,” Dutt added.

Source: Canalys
Source: Canalys

The report said that India’s top five vendors remain Samsung, Xiaomi, Vivo, Oppo, and Lenovo,  accounting for 75% of total shipments in India. Samsung shipped 9.4 million smartphones, which is 30% more than Q3 last year. On the other hand, with 9.2 million units, Xiaomi increased shipments by over 290%.

“Xiaomi’s growth is a clear example of how a successful online brand can effectively enter the offline market while maintaining low overheads,” said Canalys Analyst Rushabh Doshi.

“But Xiaomi focuses on the low end. It struggles in the mid-range (devices priced between INR15,000 and INR20,000 [US$230 and US$310]), where Samsung, Oppo, and Vivo are particularly strong. Nevertheless, we predict Xiaomi’s continued go-to-market innovations will allow it to overtake Samsung within a couple of quarters.”

As for iPhone, its shipments more than doubled in Q3 2017 as compared to its shipments in Q3 2016.