Saturday, 28 January 2023

Realme takes second spot in smartphone market, overtakes Samsung

Realme takes second spot in smartphone market, overtakes Samsung

Mobile phone maker Realme has overtaken South Korean giant Samsung to grab the second spot in the branded smartphone market, with an 18 percent volume share in October this year, revealed Counterpoint Research.

Its rival Samsung ended October with a 16 percent share. Xiaomi, which includes its brand POCO was at 20 percent; Vivo was 13 percent.

The rise brings Realme closer to its target to reach the No. 1 position by 2022, when it hopes to sell more than 40 million mobile phones yearly. In an interview with Madhav Sheth, Co-Founder, who built a brand in India with the partner Sky Li, they said:

“We want to be No. 1 smartphone brand by year 2022. In the upcoming two years, we will also be in the top five brand in consumer electronics, especially tablets, laptops, wearables, and televisions.”

The October numbers mark a pattern shift for Realme. The manufacturer of Chinese smartphones has been able to grab a share from its key competitors. In Q3 of 2021, it had a 15 percent share (Vivo was at 13 percent), while Samsung was marginally ahead at 17 percent and Xiaomi at 23 percent.

Realme takes second spot in smartphone market overtakes Samsung 1Twitter image: @SamsungIndia

Read More: Indian Government make Big decision on Keeping multiple SIMs

Its aggression in the online sales platform was assisted in its endeavor. It becomes the No. 1 brand in sales on Flipkart during the festival month, with a 52 percent share of smartphone sales. It was also the top two online smartphones brand, with a 27 percent market stake.

Madhav Sheth expected to end the year on a high account by selling 23-24 million smartphones in 2021, compared to 18 million last year. The company assembles all its smartphones in the country and claims to have a localization of over 70 percent.

From nobody, the brand shined a trail in May 2018 and was one of the first players to launch 5G smartphones. With an average selling price of Rs 11,080, it offers high-quality specifications at attractive price points. Samsung’s ASP would be much higher in terms of value. However, the company is now planning to start phones at the top end of the spectrum, priced above Rs 50,000.

Realme is also making a step in global markets. It is available in more than 60 markets across the world. According to the Counterpoint Research data, if international smartphone shipments in Q3 of 2021 are any indication, it already has a 5 percent market share.

Sheth, tasked with running the global business, concentrates on some key markets- Latin America, Asia, Europe, and Southeast. The brand has already cut in the European Union market and has cornered a 3 percent share in Q3 of 2021.

To strengthen its India reach, Realme is increasing the number of outlets to 55,000 by next year, from 30,000 currently. Although online sales are crucial, 70 percent of sales still happen physically.