Amazon 'unhappy' with latest smartphone data, here's why
NEW DELHIi: Amazonhas contested projections by research firms that the online retailer had a lower share of the smartphone market by both shipments and value and claimed it will trump rivalFlipkart by Diwali.
The Seattle-based companyalleged that a large chunk of Flipkart's smartphone saleswent to traders, unlike its own, where almost all went directly to consumers.
The Seattle-based companyalleged that a large chunk of Flipkart's smartphone saleswent to traders, unlike its own, where almost all went directly to consumers.
Flipkart didn't immediately respond to ET's queries. "Some research agencies and articles (media reports) that have quoted certain numbers, which we want to clarify... We have never shared those numbers with them," said Arun Srinivasan, category leader for consumer electronics and smartphones at Amazon India, without naming any agency.
The agencies and reports said Flipkart was No. 1 in the smartphone segment with a huge lead over Amazon.
"According to the feedback from brands, there's very little difference between the two platforms, and giving them some benefit of doubt, there may still be a 10% delta, but that also gets queered by returns, rejects," Srinivasan said.
He added that the two companies were neck-and-neck in the past few months, even though Amazon entered the segment two years ago.
"It's possible that we could cross them on a sustained basis and by Diwali we could be ahead," Srinivasan told ET. Amazon is set to launch models from BlackBerry, Nokia, Lenovo and LG within 10 days.
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Flipkart had a 57% share of the online smartphone market in the January to March quarter, while Amazon had 27%, Hong Kong-based Counterpoint Technology Market Research said.
Smartphones are the largest product category by revenue for Flipkart and Amazon and both have started selling refurbished phones. The stakes are high in an extremely competitive and pricesensitive segment.
A larger share is even more critical because the smartphone segment has remained stagnant at one-third of the entire market and sales of these devices are expected to grow at the slowest pace in 2017, as reported by ET on Monday.
Elaborating on the claim that Flipkart's sales were largely to traders, Srinivasan said the number of phones going to resellers on its platform was really small, driven by the fact that it had a lower share of cash-on-delivery orders and stringent norms to identify people who could potentially be sellers by linking customer IDs, besides a cap on monthly orders.
"Anecdotally, we've heard that a large chunk of their sales goes to the trade, but it's difficult for us to triangulate that," he said, referring to Flipkart's shipments. "In our case, 99% is going to genuine customers."
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