Despite a 15% year-on-year growth in smartphone shipments and a surge in demand for 4G handsets during the April-June quarter, Reliance Jio has been stuck with a huge inventory of its LYF range of mobile phones, because of the delay in launch of commercial services, CounterPoint Research said in its report on Thursday. During the quarter, there were about 30 million smartphones shipped into India, of which 20 million were LTE-based handsets.
"Reliance Jio continues to maintain fifth spot but the brand's sell-through has been not upto expectations due to further delay to the launch of commercial LTE network services. As a result, that brand has been sitting on high inventory during the quarter," CounterPoint Research said in its quarterly Market Monitor service, a report that ranks the handset companies by shipments every three months.
During the quarter, the company sold 2 million handsets, while only 1.5 million subscribed to its services, Reliance Industries, its parent company, said in its latest earnings release.
Smartphones supporting 4G or LTE services saw demand surge more than 264% from a year earlier, the research company said, and added that handsets that support local languages and were made in India were the preferred choice for consumers during the quarter.
"We estimate that by the end of 2016, more than 10 million smartphone users will have phones supporting at least more than 12 languages and this will be a very important trend every OEM will have to follow to further penetrate the Indian smartphone market," said Pavel Naiya, analyst at CounterPoint.
Among other smartphone firms, Samsung Electronics led the market with 25.6% growth, followed by home-grown Micromax that had a 14.1% market share. Intex Technologies retained the fourth position with 8.5% share, and Lenovo Group, along with sales of its Motorola smartphones, gained 8.3% market share to be the fifth largest firm by shipments, CounterPoint added.
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Source: Reliance Jio LYF smartphone inventory piles up over delay
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