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Flipkart Leads way with 5% rise in smartphone sales .

NEW DELHI: Online retailer Flipkart strengthened its no. 1 position in the smartphone market on back of high-selling models from Xiaomi and Motorola, taking away share from rivals Amazon and Snapdeal.

Flipkart had a 45% share of smartphones sold online in India in the quarter ended September, up 5 percentage points from the share it had in the three months ended June, according to data from Hong Kong-based Counterpoint Technology Market Research.

No. 2 Amazon lost share sequentially to 30% from 32% and so did third-placed Snapdeal, whose share dropped to 16% from 18%, Counterpoint said.

Amazon disputed the findings, saying its sales had been “phenomenal.” Snapdeal did not comment. Flipkart cited data from research firm International Data Corporation to claim a 60% share in smartphone segment in July-September.

“Though numbers of exclusive launches for Amazon and Flipkart was the same during the third quarter, but hero models like Redmi 3S Prime, Moto E3 Power, Redmi 3s on Flipkart helped it regain market share,” said Pavel Naiya, a research analyst at Counterpoint. “In terms of supply chain, Flipkart also has better grab outside metro and tier-1cities compared to Amazon.”

The research firm said Paytm had a market share of 3%, followed by Mi.com and Tata Cliq at 2% each, tied for fifth place. The volume of online smartphone sales expanded 30% to 11 million on-year in the quarter ended September. Analysts at Counterpoint expect online sales growth in 2016 to slow to 10%-12.5% on year, mainly due to the demonetisation announced in November, which led to a cash crunch and curbed discretionary purchases.

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