Reliance Jio beats Huawei to become top player in data cards market
Reliance Jio's JioFi 3 and JioFi 2 data cards popularity propelled it into the top position in the data cards market in India.
Key highlights:
- Reliance Jio beat Huawei to become the top player in the data cards market
- Reliance Jio's JioFi 3 was the fastest moving model followed by JioFi 2
- Huawei shipments plunged sequentially by 36%
Reliance Jio beat Huawei to become the top player in the data cards market in the second half of FY17. The company saw a 77% growth in data cards in the second half of FY17 in comparison to 12% in first half of FY17, according to a CyberMedia Research (CMR) report.
Reliance Jio's JioFi 3 was the fastest moving model followed by JioFi 2 on number two position. Huawei E3372H-607 was on the third spot.
This has put Reliance Jio in the lead and now has a market share of 86% in Q4 FY17 from 68% in Q3 FY17 and 18% in Q2 FY17.
Huawei shipments plunged sequentially by 36% in 2H FY2016-2017. The vendor’s market share decreased from 33% in 1H FY2016-2017 to 10% in 2H FY2016-2017.
ZTE shipments witnessed 6% sequential growth in 2H FY2016-2017, while other vendors like Alcatel, D-Link saw fall in 2H FY2016-2017.
“Reliance Jio replaced Huawei as the most favored vendor in 2H FY2016-2017, in terms of market share (Unit shipments). Market share of Reliance Jio grew from 12% in 1H FY2016-2017 to 77% in 2H FY2016-2017 due to free data services along with comparatively lower price of its Mi-Fi Data Cards,” said Shipra Sinha, Lead Analyst, Industry Intelligence and Channels Research Practices, CMR said.
The Indian Data Cards market registered 107% jump in 2H FY2016-2017 to 3.6 million over 1H FY2016-2017, in terms of units shipped, according to CMR’s India Data Cards Monthly Market Review Mar-17, June 2017 release.
LTE/4G Data Card shipments witnessed 228% sequential rise to 3.3 million in 2H FY2016-2017. LTE/4G replaced 3G as the most favored technology in the Data Cards market. 3G shipments declined sequentially by 67% in 2H FY2016-2017, when compared to the first half of FY2016-2017.
“Mi-Fi devices led the growth of LTE/4G technology in 2H FY2016-2017. LTE based Mi-Fi devices jumped sequentially by 333% in 2H FY2016-2017,” stated Sinha.
Data Cards with data rate of 150 Mbps contributed around 92% to overall shipments in 2H FY2016-2017.
Around 59% of Data Cards were sold with operator bundling in 1H FY2016-2017 that increased to around 95% in 2H FY2016-2017.
“Mi-Fi devices are expected to show further rise in the future. In-built battery with anywhere, anytime data connectivity because of the various affordable data plans in Mi-Fi devices are the key features contributing to its growth. Large number of user support with a single device is also one of the reasons for the growth in Mi-Fi devices. Significant push by telecom service providers is also making and continue to make Mi-Fi cards the most favored option in India,” Shipra concluded.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
06:52 PM IST