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Xiaomi May Lose Top Spot in Indian Smartphone Market in 2020

According to IDC, India's smartphone market shipped a record 46.6 million units in the third quarter of 2019, registering 26.5 per cent quarter-over-quarter and 9.3 per cent year-over-year growth

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The highest demand among people was for of smartphones, followed by Mi ecosystem devices, accessories and Mi TVs. Wikimedia Commons

BY GOKUL BHAGABATI

Chinese smartphone maker Xiaomi is confident that it will be able to retain its No. 1 position in the Indian smartphone market next year too, but industry experts believe that the country may see a different winner in 2020.

At the end of the first quarter of 2019, Xiaomi had a market share of 30.6 per cent, far ahead of Samsung, which took the second spot with a share of 22.3 per cent, according to an International Data Corporation (IDC) report.

But by the third quarter of 2019, Xiaomi’s market share fell to 27.1 per cent. Samsung too experienced a decline as its share went down to 18.9 per cent, IDC data showed.

“Given the remarkable Q3 2019 strides made by the BBK (parent company of OPPO, Vivo, Realme and OnePlus) brands in India, Xiaomi would need to be wary of the rising competition and the decline in its market share. In the first three quarters of 2019, Xiaomi lost three per cent market share,” Prabhu Ram, Head-Industry Intelligence Group (IIG), CyberMedia Research (CMR), told IANS.

Out of the BBK Group brands, Realme’s rise in the Indian smartphone market has been truly spectacular. From 6 per cent market share in Q1 of 2019, it grabbed 14.3 per cent market share at the end of Q3.

Vivo also witnessed its fair share of growth this year. Its share rose from 13 per cent in Q1 to 15.2 per cent in Q3. OPPO did even better than Vivo in terms of growth. OPPO’s share grew from 7.6 per cent in Q1 to 11.8 per cent in Q3, according to IDC.

“As per our estimates, 49 per cent of the sales of smartphones in 2020 will be in the basic segment (Rs 5,001 to Rs 10,000) where Xiaomi is still strong,” said Faisal Kawoosa, Founder and Chief Analyst at market research firm techARC.

Xiaomi
Xiaomi is expected to release the foldable phone by the end of 2019. Wikimedia Commons

“The other major chunk is mid-segment (Rs 10,001 to Rs 25,000). Here we have increasingly good number of strong players emerging like Realme, OPPO and Vivo. This segment will sell 44 per cent of smartphones,” Kawoosa said.

Speaking of Xiaomi’s prospects of retaining the No.1 position next year, he said that “looking at the potential and how Xiaomi is positioned, it seems difficult for the brand to retain the honours.”

“It is now on a defensive mode,” he added.

“As Realme comes with new offerings in the mid-tier and premium segment, and OPPO and Vivo also unveil plans to go premium, Xiaomi faces an uphill battle,” Ram agreed.

To retain their numero uno position, Xiaomi would need to go beyond its existing brand imagery and also consolidate its offline play, Ram said.

“Xiaomi has been able to build on their offline play by building their own chain of Mi Stores, apart from their non-exclusive network of Mi Preferred Partners,” he added.

But if Xiaomi loses the top spot in the Indian smartphone market, which brand will replace it?

Xiaomi
Xiaomi also refreshes ‘Mi TV’ series in India. (Wikimedia Commons)

While CMR’s Ram thinks that the question is “wide open right now”, Kawoosa believes that Samsung could resurface as the leader.

“It will take other challenger brands time to cross the 20 per cent mark and eventually aspire to become No 1. In that case, Samsung could resurface as the leader while Xiaomi’s share is being eaten up by Realme and others,” he said.

Ram, however, warned that one cannot underestimate the potential of Realme.

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“Realme looks promising and with aggressive strategies, it is potentially well-placed to scale new heights, as long as it is able to avoid inventory glut,” Ram said.

According to IDC, India’s smartphone market shipped a record 46.6 million units in the third quarter of 2019, registering 26.5 per cent quarter-over-quarter and 9.3 per cent year-over-year growth. (IANS)

Next Story

Hackers Target 1 Indian Firm Over 1,500 Times a Week

Misconfiguration of cloud resources is still the number one cause for Cloud attacks, but now we also witness an increasing number of attacks aimed directly at Cloud service providers

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Hackers have the power to bring down your website or your entire network if they so wish. Pixabay

A single organisation in India was attacked an alarming 1,565 times per week on average in the past six months, compared to 474 attacks by hackers per organisation globally, says a new report.

According to researchers at Israeli cybersecurity firm Check Point Research, 93 per cent of malicious files in India were delivered via the web, compared to 35 per cent of malicious files globally.

The most common vulnerability exploit type in India is information disclosure, impacting 64 per cent of the organisations and the top malware in India is “XMRig” that impacts 17 per cent of firms, said Check Point’s ‘2020 Cyber Security’ report.

“2019 presented a complex threat landscape where nation states, cybercrime organisations and private contractors accelerated the cyber arms race, elevating each other’s capabilities at an alarming pace, and this will continue into 2020,” said Lotem Finkelsteen, Threat Intelligence Group Manager, Check Point Software Technologies.

It is pertinent to note that cryptominers still dominate malware landscape.

Even though cryptomining declined during 2019, linked to cryptocurrencies’ fall in value and the closure of the Coinhive operation in March, 38 per cent of companies globally were impacted by crypto-miners in 2019, up from 37 per cent in 2018.

This is because the use of crypto-miners remains a low-risk, high-reward activity for criminals.

“Detecting and automatically blocking the attack at an early stage can prevent damage. Check Point’s 2020 Security Report shares what organisations need to look out for, and how they can win the war against cyber attacks through key best practices,” Finkelsteen added.

Twenty eight per cent of organisations globally were hit by botnet activity, an increase of over 50 per cent compared with 2018.

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FILE – In 2010, the Stuxnet virus disrupted operation of centrifuges at a uranium enrichment facility in Iran. VOA

Emotet was the most common bot malware used, primarily because of its versatility in enabling malware and spam distribution services. Other botnet actions such as sextortion email activity and DDoS attacks also rose sharply in 2019.

While the number of impacted organisations is relatively low, the severity of the attack is much higher — as seen in 2019’s damaging attacks against US city administrations.

Criminals are choosing their ransomware targets carefully, with the aim of extorting the maximum revenue possible.

Notably, 27 per cent of organisations worldwide were impacted by cyberattacks that involved mobile devices in 2019, down from 33 per cent in 2018.

While the mobile threat landscape is maturing, organisations are also increasingly aware of the threat, and are deploying more protection on mobiles.

Currently, more than 90 per cent of enterprises use Cloud services and yet 67 per cent of security teams complain about the lack of visibility into their Cloud infrastructure, security, and compliance.

The magnitude of Cloud attacks and breaches has continued to grow in 2019.

Also Read: 84% Indians Hope to Retain Their Jobs Despite Automation: WEF

Misconfiguration of cloud resources is still the number one cause for Cloud attacks, but now we also witness an increasing number of attacks aimed directly at Cloud service providers.

“Even if an organisation is equipped with the most comprehensive, state-of-the-art security products, the risk of being breached cannot be completely eliminated. Beyond detection and remediation, organizations need to adopt a proactive plan to stay ahead of cybercriminals and prevent attacks,” explained Finkelsteen. (IANS)