All three native gamers are planning to re-enter India’s extremely aggressive smartphone market that’s dominated by Chinese handset manufacturers – Xiaomi, Realme, Oppo and Vivo.
With launches within the sub- Rs 10,000 value section, the native manufacturers are searching for a significant market presence.
The share of native manufacturers stood at 1% within the smartphone market within the January-March interval in opposition to 81% for the Chinese manufacturers, in response to Counterpoint Research.
Tarun Pathak, affiliate director at Counterpoint Research, stated that R&D is among the key areas the place native manufacturers want to enhance to scale up and develop sooner or later.
“The hardware will be commoditised and they need to find ways to monetise the same and stay profitable, which means they will need to look outside just the entry level users and look at differentiation from the software standpoint as well,” Pathak stated.
Navkendar Singh, analysis director at IDC, stated {that a} comeback from native manufacturers appears robust. “They need better support from the Indian government, like incentives or cheaper funds under some scheme. Else, there is no way they can compete with China-based brands in terms of marketing and channel spends.”
He added that to journey the anti-China wave in India, handsets of native manufacturers logically must be totally made in India, which isn’t doable for the subsequent few years. “We have to set up a full value chain in India from displays and chips to chargers and cables,” stated Navkendar Singh. “The capability to assemble at scale for someone is not difficult.”
Faisal Kawoosa, founder analyst at TechArc, stated that acceptability of Indian manufacturers is negligible in Rs 10,000 and above value section even when the expansion is going on within the mid-segment for smartphones.
He added that amongst native manufacturers, Lava is way forward when it comes to design capabilities and already has some momentum available in the market.
“Lava has done a good job in design and has deeper capabilities, and invested in product development and R&D capabilities,” Kawoosa stated.
Lava plans to shift its export manufacturing base, R&D and design from China to India this yr and can make investments Rs 80 crore for the transition.
It will make investments about Rs 800 crore over the subsequent 5 years towards this transition.
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