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GST Confusion Causes Smartphone Shipments in India to Fall For The First Time

Samsung continues to be the no. 1 player in India while the country sees its maiden drop in smartphone shipments.

Debashis Sarkar | News18.com@SarkDeb

Updated:July 27, 2017, 1:22 PM IST
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GST Confusion Causes Smartphone Shipments in India to Fall For The First Time
(R) Ken Kang, MD and Head, Mobile Business, Samsung India and Sumit Walia, Director Mobile Business, Samsung to launch the Samsung Galaxy J7 Pro and Galaxy J7 Max smartphones during a press conference in New Delhi . (Image: PTI)
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With Samsung continuing to dominate the Indian smartphone market, the overall smartphone shipments witnessed its maiden drop in Q2 2017, according to a report by Canalys. “The smartphone shipments in India, for the first time in its history, fell 4% year on year to just under 27 million units in Q2 2017,” said Canalys. The independent analyst company blamed the recent roll out of GST for the drop.

“There is general confusion in the entire market over GST and a lack of awareness about the changes that are needed. Apprehension among distributors and retailers regarding the impact on prices has caused the market to adopt a wait-and-see policy,” said Canalys Analyst Rushabh Doshi.

Suggesting that the adverse effect of GST to be limited, Doshi said, “The market will emerge stronger post-GST. Vendors can look forward to leaner distribution, faster delivery and increased demand from local retailers and distributors.”

Samsung continues to lead the market, with a 25 percent share, followed by Xiaomi. Vivo took third place, shipping an all-time high of 3.4 million units. Oppo displaced Lenovo to take fourth place, while Lenovo finished fifth with 1.9 million smartphones. Collectively, Xiaomi, Oppo, Vivo, Gionee and Lenovo command over 50 percent of India’s smartphone market.

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| Edited by: Debashis Sarkar
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