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The feel of being a narcissist is amazing. And smartphone makers are pinning on this opportunity. Mostly specialized by the Chinese brands, we have seen how <keyword id="1725157" type="UNKNOWN" weightage="20" keywordseo="Selfie">selfie</keyword> cameras are coming up with signature phones to make sure you look pretty. First there was a front camera, primarily aimed at making video calls easier through phones. Then came selfie. Then a flash was added in the front camera and the latest is ensuring the best quality photo through front camera. 
 
<a href="http://www.businessinsider.in/hands-on-review-of-lg-v20-smartphone/articleshow/57234087.cms">ALSO READ: LG V20: You're in for a real treat</a> 
 According to <keyword id="668267" type="ORGANIZATION" weightage="20" keywordseo="International-Data-Corporation">International Data Corporation</keyword> (IDC), India has registered 109.1 million units of smartphone shipments last year. This indicates that India is the smartest market to invest in innovation. 
 <keyword id="1188106" type="COMPANY" weightage="100" keywordseo="Gionee">Gionee</keyword>, the Chinese brand of smartphone has established itself in India not just as a smartphone maker but as an innovation-first company. While most brands push for sales, we have seen Gionee coming up with the first slimmest phone in the country. Then it triggered a massive hit among the fans when it came with the selfie flash. And now with A1, its newest offering, Gionee actually won the war of selfie phones. While brands like <keyword id="215177" type="COMPANY" weightage="20" keywordseo="Vivo">Vivo</keyword>, <keyword id="1731609" type="UNKNOWN" weightage="20" keywordseo="Oppo">Oppo</keyword> and <keyword id="13722" type="CITY" weightage="20" keywordseo="Lenovo">Lenovo</keyword> have followed the suit to make phones selfie special, Gionee made sure those selfies are grain-less and best suited for public display.

Keep calm selfie lovers! Gionee A1 is here with 16 MEGA
pixel front camera

If things go all planned, you can get your <a href="http://www.businessinsider.in/This-top-executive-from-Ola-has-released-a-striking-app-which-tells-you-how-good-or-bad-the-roads-are/articleshow/53924926.cms">Aadhaar</a> <a href="http://www.businessinsider.in/This-top-executive-from-Ola-has-released-a-striking-app-which-tells-you-how-good-or-bad-the-roads-are/articleshow/53924926.cms">authenticated</a> through phones. According to reports, <a href="http://www.businessinsider.in/This-top-executive-from-Ola-has-released-a-striking-app-which-tells-you-how-good-or-bad-the-roads-are/articleshow/53924926.cms">Micromax</a>, <keyword id="6366627" type="COMPANY" weightage="100" keywordseo="Intex">Intex</keyword>, Lava and Reliance Retail's <keyword id="3102415" type="UNKNOWN" weightage="20" keywordseo="LYF">Lyf</keyword> will soon be coming with Aadhaar-ready phones. The phone makers have initiated discussions with <keyword id="3558090" type="UNKNOWN" weightage="20" keywordseo="delta-id-inc">Delta ID Inc</keyword> for the same. However, <keyword id="6354427" type="CITY" weightage="20" keywordseo="Apple">Apple</keyword> and <keyword id="6355629" type="CITY" weightage="20" keywordseo="Google">Google</keyword> aren’t much interested in this as they believe; making phones Aadhaar ready might be a threat to personal privacy. The iris-reading technology would let users authenticate their biometrics just by looking at phone having a special IRIS camera and LeD. <keyword id="6383835" type="COMPANY" weightage="20" keywordseo="Delta">Delta</keyword> ID is a specialized maker of ActiveIRIS technology and have passed <keyword id="3205447" type="ORGANIZATION" weightage="20" keywordseo="STQC">STQC</keyword> performance test for Aadhaar authentication. 
 "We are having discussions with Reliance, Intex, Lava and Micromax. We believe Chinese brands like <keyword id="1188106" type="COMPANY" weightage="20" keywordseo="Gionee">Gionee</keyword>, Vivo and Oppo would also be interested in such an IRiS-based software for Aadhaar-based authentication," <keyword id="3558093" type="UNKNOWN" weightage="20" keywordseo="salil-prabhakar">Salil Prabhakar</keyword>, chief executive of <a href="http://www.businessinsider.in/This-top-executive-from-Ola-has-released-a-striking-app-which-tells-you-how-good-or-bad-the-roads-are/articleshow/53924926.cms">Delta ID</a> told the <keyword id="6474066" type="COMPANY" weightage="20" keywordseo="economic-times">Economic Times</keyword>. 
 
"There is huge interest across the board for it. With Aadhaar <a href="http://www.businessinsider.in/This-top-executive-from-Ola-has-released-a-striking-app-which-tells-you-how-good-or-bad-the-roads-are/articleshow/53924926.cms">enrolment </a>in India crossing 105 crore, the potential is immense." 
 
The technology would enable a user to authenticate his Aadhaar details by looking at a phone having a special IRIS camera and LeD. "ActiveIRIS is a powerful biometric identifier and this can be a game-changing feature in phones helping establish the identity of a person. At Intex, we are in talks with UIDAI and are evaluating the same," Intex Director <keyword id="366460" type="PERSON" weightage="20" keywordseo="Keshav-Bansal">Keshav Bansal</keyword> told the financial daily. 
 There are a few other companies which can assemble and market iris scanners in India, which includes US-based <keyword id="3659396" type="UNKNOWN" weightage="20" keywordseo="iritech">IriTech</keyword>, and <a href="http://www.businessinsider.in/This-top-executive-from-Ola-has-released-a-striking-app-which-tells-you-how-good-or-bad-the-roads-are/articleshow/53924926.cms">Gujarat</a>-based <keyword id="3183678" type="UNKNOWN" weightage="20" keywordseo="Biomatiques-Identification-Solutions">Biomatiques Identification Solutions</keyword>. 
 "We are working with <keyword id="1660257" type="UNKNOWN" weightage="20" keywordseo="InFocus">InFocus</keyword> on a smartphone platform and will be launching it soon," <keyword id="3659393" type="UNKNOWN" weightage="20" keywordseo="prabhu-sridharan">Prabhu Sridharan</keyword>, the executive vice-president at IriTech, told ET.

​ Micromax, Intex, Lava may be launching phones that will help authentication of Aadhaar

A few years back, there were over 500 smartphone brands in <a href="http://www.businessinsider.in/small-business/tech/Chinese-smartphones-are-catching-up-to-Apple-and-Samsung/articleshow/55484404.cms">Chinese mobile phone market</a>, which reduced to 100 last year, with several smartphone makers shutting down their businesses because of fierce competition, low profits and unsettled debt. 
 
India is the second largest mobile handset market after China, and is going to witness something similar. Worth $15 billion, it already has around 100 brands, that cater to the market selling some 220 million units of smartphone and feature phones per year. 
 
Even though several brands have shut down, several others are getting ready to enter the market, including <a href="http://www.businessinsider.in/watch-out-xiaomi-oppo-salman-khan-is-venturing-into-smartphone-business-with-beingsmart/articleshow/57551174.cms">BeingSmart</a>, backed by Bollywood actor Salman Khan. In addition, one-time leader <keyword id="6354716" type="CITY" weightage="20" keywordseo="Nokia">Nokia</keyword> is also ready to make a comeback. 
 
Brands like <a href="http://www.businessinsider.in/with-85-of-its-staff-gone-leeco-might-soon-exit-india/articleshow/57445642.cms">LeEco</a>, Miezu and Celkon have already withheld or withdrew their operations from India, giving in to the tough competition from brands like <a href="http://www.businessinsider.in/major-boost-to-make-in-india-gionee-set-to-manufatcure-all-its-phones-here/articleshow/57771111.cms">Gionee</a>, <keyword id="874458" type="COMPANY" weightage="20" keywordseo="Xiaomi">Xiaomi</keyword>, <a href="http://www.businessinsider.in/oppo-mobiles-becomes-the-new-sponsor-of-men-in-blue/articleshow/57518520.cms">Oppo</a> and <keyword id="215177" type="COMPANY" weightage="20" keywordseo="Vivo">Vivo</keyword>. 
 
Also read: <a href="http://www.businessinsider.in/xiaomi-brings-in-the-redmi-4a-at-rs-5999/articleshow/57732314.cms">Xiaomi brings in the Redmi 4A at Rs 5999</a> 
 
Brands that were leading the market once, like <a href="http://www.businessinsider.in/micromax-to-launch-cheap-4g-volte-feature-phones/articleshow/57665718.cms">Micromax</a>, have been sidelined as well. 
 
As per industry experts, there are 200 companies in India, with 40-50 having a pan-India presence and the rest being local players. Manu Jain, managing director, Xiaomi India, said, "About eight years ago, the China smartphone market was similar to where India is now. The Chinese market has consolidated, with the top 6-7 players accounting for an 80% share. In India too, there will be consolidation." 
 
This would require outright exits from several brands as well as mergers and acquisitions amongst others, which would be decided by the key players in the country. With several brands offering only smartphones and not feature phones despite India being world’s largest market for feature phone, it remains to be seen which trend is going to adjust itself to suit the market. 
 
(Image source: Computer Weekly)

How much more brands can India’s handset market absorb?

Chinese mobile makers are giving the global players like <keyword id="10591" type="CITY" weightage="20" keywordseo="Samsung">Samsung</keyword> and <keyword id="6354427" type="CITY" weightage="20" keywordseo="Apple">Apple</keyword> a really tough time. Even the India players are taking a blow, amid heightened competition and demonetisation that has shrunk smartphone sales in the Indian market. 
 Chinese players like <keyword id="1731609" type="UNKNOWN" weightage="20" keywordseo="Oppo">Oppo</keyword>, <keyword id="215177" type="COMPANY" weightage="20" keywordseo="Vivo">Vivo</keyword>, <keyword id="874458" type="COMPANY" weightage="20" keywordseo="Xiaomi">Xiaomi</keyword>, <keyword id="13722" type="CITY" weightage="20" keywordseo="Lenovo">Lenovo</keyword> and <keyword id="1188106" type="COMPANY" weightage="20" keywordseo="Gionee">Gionee</keyword>, which have been very aggressive in marketing, have cornered more than half of the smartphone market by shipments in November, for the first time ever, even as Apple's shipments fell sharply and Samsung's was mostly flat compared to October 2016. 
 
"This is the first time that Chinese brands together account for 51% share in smartphone segment, resulting in Indian brands combined share to drop below 20%, from a peak of over 40% earlier this year. In just a couple of months, the tides have changed, which shows volatility of the Indian smartphone market,” Neil Shah, research director at Hong Kong-based Counterpoint Research, told ET. 
 
As of September-end, Indian players were at par with Chinese smartphone makers, each having 34% share of the market. They were followed by global players, led by Samsung and Apple, with 32% share. 
However, the picture totally changed in October during the festive sales, when Chinese players' share jumped to 47%, and then a further four percentage points in November. On the other hand, multinational players dominated largely by Apple and Samsung lost three percentage points month-on-month, to be at 32% in November. Indian players were at a dismal 18% in October and November. 
 
As per the analysts, Chinese players' share can well rise to 60% of the smartphone market by middle of 2017. 
 
Players like Samsung, which had a 22.6% share around September end, have seen flat shipments in November as consumer demand plunged post demonetisation. However, the impact was more on Apple as the company's shipments fell by half, from 4 lakh units shipped in October, as per market estimates. This is despite a sharp spike in the few days after the demonetisaton announcement on November 8. 
 
Demonetisation has also affected consumers' ability to buy phones in the sub-6,800 price category - the bread and butter of most Indian handset players. This is also the segment where most of the featurephone to smartphone transition was happening - a transition that has slowed, thanks to affordability and use case issues. 
 
"The Indian vendors' prime focus is the entry level segment, which is mainly driven by cash, while Chinese players operate in the higher price segments, where largely transactions are done through cashless media,” Jaipal Singh, senior analyst at IDC, told ET. 
 
For local brands to grow at the expense of Chinese brands, they will have to compete with an effective portfolio in the 8,000 to 30,000 price segment, analysts say, where they are mostly absent. 
 <keyword id="1622907" type="PERSON" weightage="20" keywordseo="Faisal-Kawoosa">Faisal Kawoosa</keyword>, principal analyst at CyberMedia Research (CMR), said Indian vendors lately felt that there is still potential in feature phone segment, which had an impact on their smartphone strategies. 
 
Indian players highlight the financial support Chinese players get from their government to enter Indian market - critical arsenal that Indian players don't have to fight off competition. 
 "The money they are spending on each handset, I don't think any Indian company or multinational company can do it,” Pradeep Jain, MD at <keyword id="84409" type="PERSON" weightage="20" keywordseo="Karbonn-Mobiles">Karbonn Mobiles</keyword>, which has seen primary sales go down by 40%, told ET. 
 
"It's not good for India the way Chinese government is supporting these companies to enter the Indian market and sell their smartphones. In my view, it would pose a challenge to Indian companies,” he added.

51% of the Indian smartphone market is comprised of Chinese phone companies by shipments

It’s been long that <keyword id="2470989" type="UNKNOWN" weightage="100" keywordseo="Chinese-smartphone-companies">Chinese smartphone companies</keyword> found their way to the <keyword id="1034848" type="UNKNOWN" weightage="100" keywordseo="Indian-smartphone-market">Indian smartphone market</keyword>, one of the fastest-growing smartphone markets in the world, but now, they have started to make a strong foothold here, giving tough competition to the top three brands - Samsung Electronics, Micromax Informatics and Intex Technologies. 
 
Also read: <a href="http://www.businessinsider.in/Troubles-may-mount-for-Indian-smartphone-vendors-and-you-can-blame-China/articleshow/53115377.cms">Troubles may mount for Indian smartphone vendors and you can blame China</a> 
 
The Chinese brigade, led by <a href="http://www.businessinsider.in/OPPO-to-locally-manufacture-10-lakh-4G-phones-per-month/articleshow/51509077.cms">Oppo</a>, Vivo and <a href="http://www.businessinsider.in/Gionee-is-seeking-approval-for-opening-single-brand-stores-in-India/articleshow/50716940.cms">Gionee</a>, gained a significant share in the market during the first quarter of this fiscal, riding on the back of an aggressive retail and marketing strategy. 
 
Also read: <a href="http://www.businessinsider.in/top-Indian-companies-will-outperform-Chinese-peers-says-SP-Global-Ratings/articleshow/53505498.cms">‘Make In India’ will help Indian companies outperform their Chinese counterparts, says S&amp;P Global Ratings</a> 
 
These Chinese brands emerged as favourites amongst the trade because of a bigger margin payout as compared to other mainstream brands. They also shell out more money for display space and branding, which is why they have been able to make their way into the smallest of neighbourhood stores in India. 
 
The share of Chinese smartphone brands rose to 27% of the total smartphone market in Q1 of FY 2016-17, as compared to 21% in the last quarter, said Hong Kong-based Counterpoint Technology Market Research. 
 
Also read: <a href="http://www.businessinsider.in/India-vs-China-smartphone-market/articleshow/52633174.cms">India is ahead of China in smartphone sales pace but can’t replace its role in global handset industry</a> 
 
As compared to that, Samsung's share fell to 25.6% during Q1, as compared to 29% in the preceding quarter. Similarly, Micromax's share slipped to 14.1% from 17%, and Intex lost 1.5% share from the last reported 10%. 
 
Also read: <a href="http://www.businessinsider.in/Chinese-smartphones-brands-are-gaining-Indian-buyers-attention/articleshow/51151943.cms">So this is why Chinese smartphones brands are gaining Indian buyers’ attention</a> 
 
Even though Samsung shipped more units when it comes to absolute numbers, the share narrowed because of a slower growth rate as compared to the Chinese brands, as told to ET by Tarun Pathak, senior telecom analyst at Counterpoint Research. 
 
Samsung, however, said that it had consolidated its smartphone market share to 47.7% in the first six months of 2016 as compared to 38.4% from same period last year. 
 
"Not only do we lead the premium segment with an over 50% market share, our <a href="http://www.businessinsider.in/Samsung-just-launched-two-new-Galaxy-phones/articleshow/53119048.cms">Galaxy J2 series smartphones </a>in the affordable segment, with Make for India innovations, has emerged as the most popular device of India, contributing 24% of the smartphone value market share," said Manu Sharma, VP (Mobile Business), <keyword id="107877" type="CITY" weightage="100" keywordseo="Samsung-India">Samsung India</keyword> Electronics. 
 
<a href="http://www.businessinsider.in/photo/51151997.cms">Image source</a>

Chinese companies are invading the Indian smartphone market like never before

<a href="http://www.businessinsider.in/searchresult.cms?query=chinese+smartphone+markers&amp;sortorder=effectivedate">Chinese smartphone makers</a> are advertising and marketing their brands in India like never before, giving Indian counterparts new goals for re-strategising and re-branding. 
 
Brands such as <a href="http://www.businessinsider.in/searchresult.cms?query=vivo&amp;sortorder=effectivedate">Vivo</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=gionee&amp;sortorder=effectivedate">Gionee</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=oppo&amp;sortorder=effectivedate">Oppo</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=leeco&amp;sortorder=effectivedate">LeEco</a> have increased their brand presence, majorly in offline medium than online and are even doubling the commission by 10 per cent. 
 
"Indian players, which usually operate on 2-3 per cent margins, are facing tough competition from Chinese players. Further, online-only Chinese players are willing to sacrifice margins, even go into negative margins," Counterpoint Research senior analyst Tarun Pathak, told ET. 
 
Not only this, the smartphone makers also paying charges between Rs 30,000 and Rs 31 lakh to mom-n-pop stores for redesigning their shop fronts and carrying the brand's name, which was done for free earlier. 
 "Tapping the retailers for a branding opportunity is a great idea which is proving to be effective for us," Vivek Zhang, chief marketing officer at <keyword id="215177" type="COMPANY" weightage="20" keywordseo="Vivo">Vivo</keyword> India, told ET. 
 
The Chinese presence has made Indian smartphone makers increase their budget for marketing and advertising as they have to match to survive the competition. 
 
Indian players such as <a href="http://www.businessinsider.in/searchresult.cms?query=micromax&amp;sortorder=effectivedate">Micromax</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=intex&amp;sortorder=effectivedate">Intex</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=lava&amp;sortorder=effectivedate">Lava</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=karbonn&amp;sortorder=effectivedate">Karbonn Mobiles</a> have to compete aggressively. 
 "We've always maintained that significantly high advertising spends and trade margins to gain short-term market share is unsustainable - especially true in the current scenario where overall industry margins are under pressure," Shubhajit Sen, chief marketing officer at <keyword id="71696" type="COMPANY" weightage="20" keywordseo="Micromax">Micromax</keyword> Informatics, told ET. 
 
As of the quarter ended March 31, Chinese players had a 22 per cent share of smartphone sales, which is expected to increase to 25 per cent, said analyst Pathak. 
 
"We have spent about $10 million (about Rs 67 crore) on marketing online and print in the first quarter this year, and we will spend similar amounts for quarters to come," LeEco's COO Atul Jain told ET. 
 
(Image: Thinkstock)

Chinese smartphone makers are raking in money on brand presence and this is giving Indian counterparts solid competition

(Photo source: Soho.com) <ul><li>The <keyword id="2582444" type="PERSON" weightage="20" keywordseo="Chinese-Smartphone-Company">Chinese smartphone company</keyword>, <keyword id="1188106" type="COMPANY" weightage="20" keywordseo="Gionee">Gionee</keyword>, is reportedly at the brink of <keyword id="43550" type="EVENT" weightage="20" keywordseo="Bankruptcy">bankruptcy</keyword> with total debt of 17 billion yuan ($2.45 billion).</li><li>According to reports in the Chinese media, the company’s chairman and chief executive, Lui Lirong, is partly to blame in lieu of his gambling debts. </li><li>Lirong, himself, admits to ‘borrowing’ company funds to gamble. </li></ul>The Chinese smartphone manufacturer, Gionee, is reportedly on the verge of bankruptcy according to the <a href="https://www.scmp.com/tech/enterprises/article/2175219/did-million-dollar-gambling-loss-saipan-imperil-chinese-smartphone">South China Morning Post</a>. And the company’s present troubles are being blamed on <keyword id="3656251" type="PERSON" weightage="20" keywordseo="Liu-Lirong">Liu Lirong</keyword>, the company’s chairman and chief executive, and his gambling debt. Lirong has admitted that the company has a 17 billion yuan debt ($2.45 billion). Out of this amount, it owes banks 10 billion yuan, upstream suppliers 5 billion yuan and around 2 billion yuan to advertising agencies. The matter gets murky as Lirong has admitted that he ‘borrowed company funds’ to finance his gambling, blurring the line between personal and company assets. He has also defended himself, stating that he didn’t lose 10 billion yuan ($1.44 billion), as is being alleged, but only around 1 billion yuan ($144 million). But even before Lirong’s alleged wrongdoing came to light, things were already going south for Gionee. The company that was once one of the mainstream brands in China and other Southeast Asian countries, started to lose its foothold in the market early last year, much before this entire revelation. According to Lirong, the company has been facing losses since 2013. Market leaders like Huawei, Oppo and Vivo — the company’s main competitors in China — were already gaining on Gionee’s smartphone sales declining in 2017. Gionee and India Gionee was one the first Chinese smartphone brands to enter India in 2012. Yet, it was unable to establish itself in the highly-competitive market. According to Counterpoint, it only had an overall market share of 2.2% in 2017, and 4.6% <a href="https://www.counterpointresearch.com/oppo-vivo-and-gionee-are-driving-the-selfie-trend-in-india/">market share</a> when it began offering selfie-focused smartphones. As an aftershock to what was happening to the brand in the Chinese market, Gionee’s sales <a href="https://telecom.economictimes.indiatimes.com/news/financial-woes-hit-gionee-india-operations-may-be-affected/62757050">started to dip</a> in India as well come 2018. At that same time, Chinese media reported that a local court had frozen 41.4% of Lirong’s stake in the company -- the reason cited was ‘gambling debts’. Despite its many hurdles, Gionee has <a href="http://www.newindianexpress.com/business/2018/feb/03/we-are-restructuring-india-operations-here-to-stay-gionee-1767692.html">asserted</a> that ‘it’s here to stay’ and that despite numerous reports, they are not scaling down operations but merely restructuring their plans in the country. See also: <a href="https://www.businessinsider.in/phone-companies-cut-production-by-up-to-15-before-gst/articleshow/59350786.cms">Phone companies cut production by up to 15% before GST</a> <a href="https://www.businessinsider.in/apple-is-betting-on-old-iphones-to-gain-market-share-in-india/articleshow/59111079.cms">Apple is betting on old iPhones to gain market share in India</a> <a href="https://www.businessinsider.in/how-much-more-brands-can-indias-handset-market-absorb/articleshow/57791179.cms">How much more brands can India’s handset market absorb?</a>

Gionee is on the verge of bankruptcy — and it’s about more than just its chairman allegedly gambling away $144 billion

China doesn’t have an official cricket team, but every year during <a href="http://www.businessinsider.in/ipl-2017-msdhoni-is-no-more-the-captain-of-rising-punesupergiants-heres-who-replaced-him/articleshow/57234303.cms">IPL</a>, China comes alive. Now that <keyword id="6354312" type="CITY" weightage="100" keywordseo="IPL">IPL</keyword> is back with another season, mobile maker Gionee, based in Shenzhen, China, has bagged the principal sponsor rights for Royal Challengers Bangalore (<keyword id="126251" type="ORGANIZATION" weightage="100" keywordseo="RCB">RCB</keyword>), led by Indian skipper <a href="http://www.businessinsider.in/small-business/tech/major-boost-to-make-in-india-gionee-set-to-manufatcure-all-its-phones-here/articleshow/57771111.cms">Virat Kohli</a>. 
 
Other Chinese names that one would hear in this <a href="http://www.businessinsider.in/advertising/sony-set-to-win-in-all-matches-this-ipl-aims-for-rs-1300-crore-advertisement-revenue/articleshow/57489648.cms">IPL </a>are <keyword id="215177" type="COMPANY" weightage="100" keywordseo="Vivo">Vivo</keyword>, <keyword id="1731609" type="UNKNOWN" weightage="100" keywordseo="Oppo">Oppo</keyword> and Lenovo-owned Motorola. 
 
Gionee already had the rights for Kolkata Knight Riders (KKR) and now with RCB, they have also signed up Kohli as the main sports brand ambassador. 
 
"Cricket and Bollywood are two religions in India. Today, a visibility in the IPL is as important for a company as it is to be there during Diwali," Arvind Vohra, the head of Gionee in India, told TOI. 
 
Also read: <a href="http://www.businessinsider.in/how-much-more-brands-can-indias-handset-market-absorb/articleshow/57791179.cms">How much more brands can India’s handset market absorb?</a> 
 
As per reports, Gionee will be spending around Rs 75 crore on cricket in India this year, for front jersey for KKR and RCB. "Out of around 60 matches to be played in the IPL, we have now been assured of a visibility in at least 28 outings," Vohra said. 
 
Oppo, which is also seeing India as a major market, will be spending even more, having signed a 5-year contract for being <a href="http://www.businessinsider.in/oppo-mobiles-becomes-the-new-sponsor-of-men-in-blue/articleshow/57518520.cms">the official sponsor </a>of the Man in Blue. Although there have been no official statements, BCCI sources estimate it to be Rs 1,079 crore. 
 
(Image source SportsRants)

Here’s how China is a part of IPL this season

As per data available from IDC until the end of 2015 for India, world's second largest smartphone market, the new shining stars are <keyword id="215177" type="COMPANY" weightage="100" keywordseo="Vivo">Vivo</keyword>, <keyword id="1731609" type="UNKNOWN" weightage="100" keywordseo="Oppo">OPPO</keyword>, Gionee, LeEco and Lenovo, all of which are Chinese brands. This has put big players like <keyword id="6354427" type="CITY" weightage="100" keywordseo="Apple">Apple</keyword>, <keyword id="10591" type="CITY" weightage="100" keywordseo="Samsung">Samsung</keyword>, LG in trouble. 
 
The reason why these Chinese smartphone brands are a hit are their mostly low-price-point offerings. This has made them take 22% of the market, 10% up from the share they had in early 2015. 
 
Apple and Samsung, on the other hand, saw their market share plunge from 44% to 37% in the same period. 
 
Talking of the Indian brands, the 2015 yearend 38% market share was sharply lower than the 44% that they had captured in late 2014. 
Another reason why China's phones are a hit amongst buyers is the aggressive marketing strategy they adopt. Vivo, OPPO, Gionee and LeEco together accounted for 55% of the Indian smartphone advertising market that stands at Rs 1,200 crore, said ET sources. 
 
Along with Samsung and Micromax being the top two largest brands India, the third share is jointly owned by Lenovo-Motorola. That's the first time a Chinese brand is in the top three. 
 
<a href="http://www.intomobile.com/wp-content/uploads/2012/07/china-smartphone-market.jpg">Image source</a>

So this is why Chinese smartphones brands are gaining Indian buyers’ attention

In eight months of being present in the country, <keyword id="3220584" type="UNKNOWN" weightage="100" keywordseo="Le-Eco">Le Eco</keyword> has already become a major player by already crossing the 1 million mark for the sale of its handsets in the country. And now the Chinese internet ecosystem company has kick-started manufacturing in India in partnership with Taiwan’s Compal Electronics with an investment of $5 million in the plant and $2 million in automation. The company has already started making smartphones from its 200,000 sq ft assembling facility in <keyword id="6356788" type="COMPANY" weightage="100" keywordseo="Greater-Noida">Greater Noida</keyword> with an initial capacity of 60,000 units a month which will be ramped up to 2,00,000 by the end of December. And with this new development it has joined ranks with other Chinese handset makers in the country such as <keyword id="874458" type="COMPANY" weightage="20" keywordseo="Xiaomi">Xiaomi</keyword>, Vivo and Gionee. But the company has its eyes on exports and how it is can make India its global export hub. Apart from India, <keyword id="310615" type="PERSON" weightage="100" keywordseo="Le">Le</keyword> Eco is currently present in China and Hongkong and it will soon start selling in Russia, Indonesia and the US and it is likely to export the made in India Le Eco smartphones to these countries. 
 
The announcement also marks the entry of contract manufacturer Compal Electronics in India with its first plant in Greater Noida. Compel Electronics makes iPhones and iPads for Apple and most of the Le Eco’s smartphones sold by the company. Compal Electronics is one of LeEco's global manufacturing partners and has presence in countries like Poland, Mexico, Brazil and China. Their partnership in India is non exclusive and both partners can work with other players. 
 
IT Minister Ravi Shankar Prasad virtually inaugurated Le Eco first manufacturing facility in India and talked about how electronic manufacturing is a massive force behind govt’s Make in India program. According to Indian Cellular Association, manufacturing of mobile phones have seen a massive jump of 83% with only 6 Cr. units made in 2014-15 to 11 Cr. units in 2015-16 and India is likely to make mobile phones worth Rs. 94,000 Cr. in 2016-2017.

Chinese Smartphone manufacturer Le Eco looking to make India its Global Hub for Exports

The infighting between telcos and <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> led <keyword id="6354504" type="UNKNOWN" weightage="100" keywordseo="Reliance-Jio">Reliance Jio</keyword> is turning out to be the <a href="http://www.businessinsider.in/Telcos-vs-Reliance-Jio-over-Jio-4G-launch-and-free-trial-test/articleshow/53875879.cms">biggest slugfest in the Indian telecom industry</a>. And now <keyword id="2003276" type="UNKNOWN" weightage="100" keywordseo="Jio">Jio</keyword> has partnered with 19 smartphone makers lapping up over 3million subscribers even before its commercial launch. This is not going down well with the telcos, we spoke to industry body <keyword id="6373028" type="ORGANIZATION" weightage="20" keywordseo="COAI">COAI</keyword> who is of the view that Jio is playing an unfair game and COAI members (including <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword>, Vodafone, Idea) will no longer extend their interconnect capacity to Jio as they don’t consider Jio as a full fledge telecom operator until they stop their free trial testing and commercially launch their services. 
 Mukesh Ambani announced the testing of Reliance Jio services on December 27th, which incidentally is Dhirubhai Ambani's birth anniversary. The test started with employees only free trial offer but soon it was extended to retail consumers through a bundled offer with Jio's range of Lyf mobiles. And now, Jio’s 90 days free trial offer can be availed with the purchase of 19 smartphone brands including <keyword id="10591" type="CITY" weightage="20" keywordseo="Samsung">Samsung</keyword>, LG, Panasonic, ASUS, Gionee, Karbonn, Lava, Xolo, Videocon, Sansui, Sony, Micromax, YU, Alcatel, TCL, Vivo, Intex and HTC. This fast growing Jio’s ‘free service’ partnership with smartphone makers is adding more fire to the never ending war of words with the existing telecom operators in the country over Jio's trial offer. Telecom operators <a href="http://www.businessinsider.in/Airtel-Vodafone-Ideas-asks-govt-to-stop-Jios-free-data-trial-offer/articleshow/53647221.cms">have written to the top govt offices</a> including the PMO about Jio's three month free trial offer and how it's helping Jio poach their customers. 
 
Now with Jio growing bigger by the day without having launched their services commercially, telcos have taken a stern stand to stop providing any further interconnect capacity to Relaince Jio. This move can potentially hurt Reliance Jio’s voice services as it is already a huge concern for Jio “It would clearly not be prudent for RJIL to contemplate launching of commercial services with this level of call failures” Jio had said. While telecom operators like Airtel, Vodafone, Idea have claimed that they have provided Jio with enough interconnect capacity to meet the usual demand of 15 to 20 million customers and now the industry will not extend the interconnect capacity any further until Jio enters the market as a full-fledge telecom player. With the growing number of Jio subscribers this could lead to a huge concern for Reliance Jio and not to mention yet another spark in this never ending battle.

Telcos pull the plug on call support for Reliance Jio as Jio’s ‘free service’mobile partnerships grow rapidly

It’s going to be a lot tougher to buy <keyword id="1648059" type="UNKNOWN" weightage="20" keywordseo="smartphones-in-India">smartphones in India</keyword> around the <a href="http://www.businessinsider.in/searchresult.cms?query=festive+season+sale&amp;sortorder=effectivedate">festive season</a> beginning October, a time when Indians buy the maximum, fancy gadgets included. 
 
The reason is really very simple, plain economics-a demand-supply mismatch. There is, as of now a glaring shortage of mobile components in China, the country which sells the maximum number of <a href="http://www.businessinsider.in/searchresult.cms?query=smartphones+in+India&amp;sortorder=effectivedate">smartphones in India</a>, through companies like Xiaomi, LeEco, Huawei, Oppo, etc. 
 
Many <a href="http://www.businessinsider.in/searchresult.cms?query=chinese+mobile+component+manufacturers&amp;sortorder=effectivedate">Chinese manufacturing units</a> in China have shut shops due to new technology, which requires more investment and hiring labour at higher rates. 
 
The display panel shortage comes as some of the panel makers, especially for the LCD displays which are largely used in the low-end smartphones and make up for majority of the smartphones sold in India, have shut shop recently, while others have not had significant increase in capacity. 
 
This is further aggravated by the fact that consumers are moving towards larger screens, 5"+ and especially at 5.5", so there are fewer glass panels are coming out from the same capacity. 
 
Even though top Chinese handset and component makers mulled over investing around $3 billion in India, the country is still dependent on the Dragon nation. 
 
Some of the key components such as screen displays, 3G SOCs and flash memory will be short in supply, hitting the production plans of many vendors in the Indian market. 
 "This is likely to impact local Indian vendors, the small ones as well as the heavy weights, more than it will impact the global vendors such as Samsung or Apple, who have a more secure supply chain, and Chinese vendors such as OPPO, vivo, Lenovo, Xiaomi and Huawei, who are able to secure better deals due to the large volumes they can commit," said Kiranjeet Kaur, Research Manager Mobile Phones <keyword id="6377157" type="CITY" weightage="20" keywordseo="IDC">IDC</keyword> Asia/Pacific. 
 
"The local country vendors have a disadvantage in this case. This shortage could also possibly lead to longer time to market and increased costs, and some of the costs may eventually get passed on to the consumers," she added. 
 
It is noteworthy that Chinese companies such as Techno, Gionee, Coolpad, Holitech, Wingtech, Camera King, Galaxy Core, Poxiao, Vivo and Sprocomm, which took part in ‘China-India Mobile Phone &amp; Component Manufacturing Summit’, explored avenues to tap the existing and emerging opportunities. 
 
"Going by the encouraging response of Chinese companies and definitive joint collaboration talks between the Indian and Chinese mobile and handset manufacturers, Chinese investment of $2-$3 billion (roughly Rs. 13,360 crores - Rs. 20,040 crores) over the next two years looks like a real possibility along with employment for one-two lakh people" Pankaj Mohindroo, national president, Indian Cellular Association (ICA), had said. 
 
However, IDC expects the Indian smartphone market to still pick up in Q2 of this year, with further gains coming in Q3. 
 
Jaipal Singh, Market Analyst Mobile Phones IDC India, said, “China-based vendors have extended their retail presence in the larger part of India and getting the shelf space along with the Indian vendors. Even as some of the eTailers are focusing more on profitability, which could mean lesser discounts this season, we believe the China-based vendors with presence in retail and push from the eTailers will drive the market this year." 
 
The China-based vendors had 24% share in the Indian smartphone market in 2016 Q1, up from 12% a year ago. Almost two-thirds of their sales takes place through the online channels.

Troubles may mount for Indian smartphone vendors and you can blame China

Indian Prime Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi</a> is touring the world again to sell the Indian dream. His ‘<a href="http://www.businessinsider.in/searchresult.cms?query=Make+in+India">Make in India</a>’ initiative promises to boost the Indian <a href="http://www.businessinsider.in/searchresult.cms?query=manufacturing+sector">manufacturing sector</a> from 17% to 25% of India’s <a href="http://www.businessinsider.in/searchresult.cms?query=GDP">GDP</a> by 2020. 
 
Around 60 Chinese smartphone companies have invaded the Indian market in the last 2 years. Companies like <a href="http://www.businessinsider.in/searchresult.cms?query=Xiaomi">Xiaomi</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=Meizu">Meizu</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=Coolpad">Coolpad</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Gionee">Gionee</a> are making it big here. The reason is simple – top-of-the-line features at crazy prices. 
 
However, while a host of Chinese brands are queuing to grab a slice of the world’s largest smartphone market, there are solid reasons why <a href="http://www.businessinsider.in/searchresult.cms?query=Apple">Apple</a> won’t <keyword id="6354869" type="UNKNOWN" weightage="100" keywordseo="make-in-India">make in India</keyword> no matter how hard NaMo tries. 
 
A closer look at the Indian smartphone market would reveal why: 
 
India’s Mark-sheet: 
 
· Xiaomi joined hands with Foxconn and started to ‘Assemble in India’ since last month (August). 
· Lenovo partnered with Flextronics this August to ‘Assemble in India’. 
· OnePlus is also toying with ‘Make in India’ plans. It is looking to launch an India-special smartphone by end 2015. 
· Meizu plans to manufacture in India with Foxconn. 
· Oppo and Vivo would also ‘Make in India’ by end 2015. 
 
What has worked for Chinese brands? 
While the Chinese smartphone market is slacking, India’s is soaring. Smartphone shipments in China fell by 4% but in India they grew 44%. 
Here’s what has worked for Chinese smartphone brands: 
 
· 2 to 20% subsidies on amount invested 
· Easing FDI (foreign direct investment) regulations 
· Cheaper labour in India (Avg. hourly labour cost Rs. 60.81 in India vs. Rs. 232.65 in China) 
· Closer to a large consumer base 
· 4G enabled smartphones selling like hot cakes, thanks to India’s 4G rollout 
 
What hasn’t: 
· Average smartphone prices lower, i.e. thinner profit margins 
· Upgrade to smartphones relatively slower 
· Competition from Indian brands like Micromax, Lava, Intex and Karbonn that make up 35% of the market 
· Securing land for factories is a pain 
· Taxes aren’t streamlined yet. Sales tax varies from State to state, and ends up raising input cost 
 
Your iPhone questions answered: 
Here are the answers to some of the most common questions about why Apple won’t Make in India answered. 
 
Why can’t Apple Make in India. After all, so many brands are! 
India is a small market for Apple. If there’s no demand, there’s no need to supply more. Simple. Just in case the demand rises suddenly, China is not that far, honestly. 
 
But they can use India as an export hub, right? 
Wrong. India’s poor logistics infrastructure makes transportation inefficient. Only 50% of the country’s roads are paved, and horrible traffic means goods never reach on time. 
 
But iPhones would get cheaper, duh! 
Apple would save around 11% on shipping. If Apple opts to carry that savings to the buyer (which is up to the company, really), iPhones would only get Rs 5,000 less expensive. Not a big deal for the company, or people who can afford its pricey gadgets.

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