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    Vivo readying to take on Apple and Samsung in India's premium smartphone market

    Synopsis

    Smartphone maker Vivo is increasing its focus on the country’s premium segment to take on the likes of Apple and Samsung in the country. The company, which is co-creating its premium phones with Zeiss, claimed to have grown 300% in the Rs 30,000 and above price segment in the past 12 months in the offline channel and expect the same growth trajectory even this year.

    Vivo readying to take on Apple and Samsung in India's premium smartphone marketiStock
    Smartphone maker Vivo is increasing its focus on the country’s premium segment to take on the likes of Apple and Samsung in the country. The company, which is co-creating its premium phones with Zeiss, claimed to have grown 300% in the Rs 30,000 and above price segment in the past 12 months in the offline channel and expect the same growth trajectory even this year.

    “We have grown 300% in the offline channel in the past 12 months for the premium segment as we have launched the right product at the right time…it is encouraging for us to keep launching new products. The online channel has also grown for premium phones. We have grown significantly but the percentage is not as big as offline,” India director, business strategy, Paigam Danish told ET.

    “Premium is a promising market. We are positive that we will grow with significant numbers this year.”

    Danish said that the country’s premium smartphone market is evolving with customers looking beyond just the performance. “They consider design and camera when they look for premium phones while upgrading.”

    India is still a smartphone upgrade market and consumers typically look to move to the next price segment when they buy a new phone. “This is one of the key reasons why the premium market will continue to see growth.”

    Apple remained the top-selling brand in the premium segment Rs 30,000 and above price segment in the first quarter, followed by Samsung and OnePlus respectively, as per Counterpoint. Seeing Apple’s growth, brands like Xiaomi, Oppo and Realme are also increasing their focus on the country’s premium segment.

    “A lot of brands are launching multiple products in this price segment. It is a sustainable market and will grow,” Danish said.

    Vivo had 15% market share in the Indian smartphone segment in the first quarter of 2022, according to Counterpoint. “...the Omicron wave in the country during the first month of the quarter, which affected the offline market, more focus on the mid and premium segments, and increasing competition affected its volumes in the mass-market segment,” the research agency said.

    The Vivo executive said that affordability and financing schemes are also playing a key role in driving the growth for the premium segment.

    “Affordability is enabling access to premium phones. Previously, there were cashbacks but now there are EMIs, subscriptions and many other offers,” he added.

    The company is now expanding its X series of premium smartphones. Like previous generation X series devices, it has again co-engineered the camera technology with Zeiss.

    “Vivo X80 series is part of our strategy to further strengthen it…we did research in India and have customized the product for the local market,'' Danish said.

    The company will make its flagship device Vivo X80 series also in India.

    It will invest Rs 1,600 crore more by 2023 to double its annual local production capacity and develop India as a global hub for exports.

    Vivo, which has seven manufacturing facilities globally, aims to increase its annual production capacity from 50 million to 60 million units in India this year.


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