Reliance Jio’s Lyf breaches the market, becomes fifth largest smartphone company
Reliance Jio’s Lyf smartphones, which was launched in October-December quarter last year, has accounted for 7.1 percent of India’s smartphone market during Q1 FY16, says IDC report. It has overthrown Lava International and become the fifth largest smartphone company by shipments. In the preceding quarter, Lava held a 7 percent market share.
The report adds that Reliance’s Lyf smartphone shipments have increased owing to a growing demand for 4G handsets during the quarter, aided by the vast distribution network put in place by Reliance Retail.
During the quarter through March end, smartphones with 4G accounted for 15.4 million units (65.5 percent overall), which has grown more than 6 times when compared to the same quarter last year.
According to the report, 23.5 million smartphones were shipped in India during Q1 FY16, registering a 5.2 percent growth from the preceding year. However, shipments fell by 8.2 percent while comparing to the preceding quarter.
Samsung continues to dominate the Indian smartphone market in term of shipments with 26.6 percent market-share in Q4 FY16; Micromax maintained the second position with 12.6 percent share; Intex fell on the third position with 9.2 percent; and Lenovo slipped to fourth position with 8.2 percent market share. Rest of the manufactures accounted for 36.3 percent of the market.
However, shipments of manufacturers like Micromax, Intex and Lava put together dropped 20.4 percent when compared to the preceding quarter.
“Jio has started building the VoLTE devices base by shipping its Lyf branded smartphones in the channels. Jio shipments are expected to grow in the coming quarters owing to launch of its service offerings,” says IDC.
As reported by Economic Times, Apple and Reliance Industries have agreed to forge a long-term relationship which includes supplying a couple of million VoLTE iPhones that will work on Reliance Jio’s upcoming 4G network as well as deploying an enterprise solution, developed by the Cupertino-headquartered company and IBM, for Reliance Retail.
According to brokerage firm CLSA prediction, Reliance Jio Infocomm's LYF smartphone, retailed by Reliance Retail, could become a $1 billion brand in 2016-17 and corner a market share of about 7 per cent.
“Sales growth in LYF smartphones could drive a 31 per cent year-on-year bump to Reliance Retail's financial year 2016 revenue of Rs 216 billion,” says CLSA.