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BRIC EDITION
(Brazil, Russia, India, China)
02.2016
SWEETINSIGHTS
A look into mobile trends around the world

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ABOUT SWEETINSIGHTS
The world is overloaded with data relating to mobile technology. SweetInsights crunches, interprets,
and shares this data with you in an easily digestible manner. We are looking to provide you with ac-
tionable insights pertaining to your mobile market, wherever you are.
SweetInsights is a market research publication by SweetLabs that identifies and analyses mobile
trends around the world.
SUMMARY
White label device manufacturers are defining value for smartphone buyers in regions where smart-
phones are experiencing significant growth. Large 5 inch screens and affordability (sub ~$200) are
driving smartphone sales in these regions, both of which are readily provided by white label OEMs.
Chinese OEMs are gaining market share in BRIC countries as we see a steady wave of customers up-
grading their feature phones to smartphones. Other factors contributing to smartphone sales in BRIC
countries is transition from 3G to 4G wireless technology and the ability to purchase smartphones at
a discounted price online. Opening the online marketplace creates more competition and drives the
cost down as internet usage becomes more widespread throughout Brazil, Russia, India and China.
Both carriers and OEMs take part in preloading apps in each of these countries. Preloading applica-
tions allows the carrier and OEM to maintain a relationship with their customers beyond the point of
sale. By extending their relationships with customers beyond the point of sale, OEMs and carriers
have the opportunity to provide an improved device experience over the lifetime of the device.
Note
White label: Refers to a product that isn’t affiliated with a well known brand name.
Think of a “white label OEM” as a device manufacturer who produces generic devices that are either
unbranded or a brand you have never heard of before.
OEM: Original Equipment Manufacturer
ODM: Original Device Manufacturer; often used in place of OEM
*All dollar amounts are in USD

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BRAZIL
Factors Driving Mobile Growth
Smartphone sales accounted for 27.5% of Mobile sales in 2012 and 77% of Mobile sales in 2014.
Smartphone features that are driving sales include large 5 inch screens and value per dollar. The
most popular phone in Brazil during 2014 was the MotoG, which features a 5 inch screen at a $220
price point. Nearly one in five Brazilians who purchased a smartphone in 2014 bought a MotoG.
Smartphones demonstrate dominance within Mobile internet users in Brazil (see Fig. 1). The
smartphone penetration rate in Brazil is estimated to reach 42.5% by 20171
.
Carrier & OEM Market Climate
Samsung is losing market share to Lenovo (Motorola) and other Chinese OEMs2
. This is likely due to
devices with comparable features that do not have premium features (fingerprint scanner, ultra-high
resolution cameras) or an affiliated brand driving up costs. See Figure 2 for a breakdown of Brazil’s
market share by OEM. Samsung’s past success has been based around offering feature packed
phones with 5 inch displays at a sub $150 price point.
Figure 1: Mobile Penetration Rates, Brazil (eMarketer)

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App Real Estate
Both carriers and OEMs have the ability to preload apps in Brazil. Movile is a big player in the pre-
load/app distribution space and has claimed to have existing partnerships with Apple, Samsung, LG,
Sony, and Huawei4
.
Other Factors Present in Brazil
Brazil has a high import tax which causes major OEMs to have a manufacturing plant in the country.
Android dominates the Brazilian market, accounting for 77% of Mobile device operating systems.
Average data rates in Brazil cost about $35/mo2
.
Carriers in Brazil have a fairly equal share of the market, although Oi is having discussions with TIM
as a possible merger. If the two companies merged they would hold nearly half of the Brazilian carrier
market. See Figure 3 for a breakdown of Brazil’s market share by carrier3
.
Figure 2: OEM Market Share Figure 3: Carrier Market Share

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RUSSIA
Factors Driving Mobile Growth
Approximately 55% of mobile users in Russia were using smartphones in 20155
. Feature phone users
are prone to upgrade to a low cost, white label smartphone that offers significantly more functionality
at a relatively inexpensive cost. Budget smartphones accounted for 50% of Mobile phone sales in
Russia during 2015.
Carrier & OEM Market Climate
Historically, notable players in the Russian market have included Samsung, Apple, and Nokia. Each of
these OEMs (including Sony and HTC) are losing market share to Huawei, Lenovo, ZTE, and white la-
bel OEMs. Combined, these Chinese OEMs make up 51% of the Mobile market in Russia6
(See Figure
4). This trend is driven by a poor performing Russian economy. Russian consumers looking for value
per dollar spent when purchasing a Mobile device and Chinese OEMs are providing a competitive
product at a lower price than other OEMs.
Mobile carriers in Russia are consolidated between four main competitors: Vimpelcom, MTS, Mega-
Fon and Tele2. Combined, these three carriers make up 98% of carrier market share7
(see figure 5).
Figure 4: OEM Market Share Figure 5: Carrier Market Share
App Real Estate
Russian Mobile OEMs have preload deals and have the ability to choose what is preloaded onto their
phones. carriers also have their own apps that can also be preloaded onto smartphones in Russia.
Together, OEMs and carriers share joint control over the smartphone real estate in Russia.
Other Factors Present in Russia
• Mobile penetration (feature + smartphone) is 74% in Russia5
.
• 24% of Mobile users in Russia use their devices for money transfers8
.

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Carrier & OEM Market Climate
India has the world’s second biggest Mobile market by volume and budget smartphones dominate
the market. India’s growth has caused the region to be a host to a cutthroat climate for OEMs. Sam-
sung has been focusing specifically on India in recent times and continues to tighten its grip on head-
ing OEM market share in India. Indian OEMs offer competitive products at ideal price points which
are keeping white label and Chinese OEMs in check, for the time being.
Nearly 50% of all smartphones shipped to India during 2Q15 were sub $100 devices and had 5+
inch screens. Flipkart, Snapdeal and Amazon have played fundamental roles in distributing Chinese
smartphones in India - making 4G phones available for prices ranging from $100-$150 USD9.
INDIA
Factors Driving Mobile Growth
IDC anticipates India to surpass the US as the second largest smartphone market in the world by
20179
. India currently has 111 Million smartphone users (out of 976 Million wireless subscribers) and is
predicted to have 519 Million smartphone users by 2018. 70-80 Million feature phone users are ex-
pected to transition to smartphones in 201610
. 25% of new smartphone sales in India will occur online.
India experienced over 40% quarterly growth in smartphone shipments between 2013Q1 and 2015Q2
(see Figure 6).
Figure 6: India’s Smartphone shipments

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Samsung has emerged as the biggest 4G player in India as customers transition from 3G to 4G net-
works. The Galaxy Grand Prime and Galaxy J2 are extremely popular due to their large 5 inch screen
and 4G connectivity. The most successful OEMs in this region are have very strong budget product
lines. Micromax has entered second place due to it’s $50-$150 smartphone offerings. Intex is ranked
third due to its strong sub $100 product line which makes up 80% of their total sales volume. Lenovo
had the majority of their shipments through online purchases and is the only China based OEM in the
top 5. All together, Chinese OEMs Lenovo, Xiaomi, Huawei, and Gionee account for 12% of the total
smartphone market in India for 2015Q2. See Figure 7 for a breakout of OEM market share in India.
Several telecom operators reduced their 3G tariffs by 80-90% in the second half of 2013, making 3G
prices comparable to 2G prices. As of June 2015, internet users stood at over 350 Million11
.
India is host to a competitive carrier market. Bharti Airtel is the clear leader, featuring inexpensive
plans, the best rural coverage and phenomenal customer support. See Figure 8 for a breakout of
carrier market share.
Figure 7: OEM Market Share Figure 8: Carrier Market Share
App Real Estate
Both carriers and OEMs have the ability to preload apps in India (at $0.07-$0.15 per preload in 2013)12
.
However, app distribution in India is dominated by international app stores: Google Play, Nokia Ovi
Store, Apple App Store. Many US app stores are used in India because there is no localization
required.
Other Factors Present in India
• India is one of the cheapest countries to have a Mobile data plan.
• Average data rates in India cost about $3.40 /mo2
.
• Internet penetration is by far the lowest in BRIC countries at 17.4%13
.
• As of July 2015, 90% of smartphone users are male14
.
• Smartphone penetration is estimated at 10% of Mobile users, but experiences 100M Google
Play downloads per month15
.
• 92% of internet subscribers access internet on wireless devices (laptop, smartphone, tablet).

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CHINA
Factors Driving Mobile Growth
IDC reports that smartphone growth has stagnated in China, decreasing from 19.7% in 2014 to 1.2%
in 20159
. Chinese OEMs such as Xiaomi and Huawei are taking share from Apple and Samsung
through their mid-ranged, feature filled smartphone product lines. The first time smartphone buyer
surge is history. The smartphone opportunity lies in the upgrade market. Luxury brand smartphones
are poised for growth in China. For example, Samsung flagships contribute to a significant portion of
smartphone sales in China. Additionally, half of iPhone buyers were first time smartphone buyers in
China in 2015Q3, signifying that the market of first time smartphone buyers has already developed.
Carrier & OEM Market Climate
Xiaomi and Huawei are in fierce competition to be the leading OEM in China. Samsung has lost mar-
ket share to the competitive mid range devices offered by both Xiaomi and Huawei during the their
double digit shipment growth over the past 2-3 years. The market has now developed luxury brand
smartphones such as Samsung flagships and Apple iPhones are poised for growth in the Chinese
market. There are three carriers present in China. China Mobile has a solid reputation and dominates
the carrier market, holding 60% share. China Unicom and China Telecom have pooled resources in
an effort to resist losing any more market share to China Mobile16
.
App Real Estate
Preloading apps in China became commonplace during 2013. Preloaded messaging services, like
WeChat, provide carriers with a channel to distribute apps to subscribers. Alibaba began preloading
on China Telecom devices in 2013 as well. OEMs tend to preload much more volume than carriers in
China. SkyMobi has deals with OEMs that allow them to preload their app store on 40% of Android
phones sold in China. Another example of OEMs preloading is ZTE preloading Fortuma’s app pur-
chasing software on ZTE devices.
Other Factors Present in China
• Nearly 20% of smartphones sold in China were less than $100 as of 2Q2015.
• Local, third party app stores have been highly successful in distributing apps in China.
• Preloaded malware is a problem for Mobile devices coming out of China17
.
Figure 9: OEM Market Share Figure 10: Carrier Market Share

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SOURCES
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temforum.com/2015/09/30/brazil-focus-the-smartphone-market/
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2016, from http://www.forbes.com/sites/kenrapoza/2014/10/20/in-brazil-digital-divide-shrinks-even-as-costs-become-prohib-
itive/#3191ae423486
3. Brazilian Mobile Operators in a Nutshell. (2014, October 10). Retrieved January 26, 2016. http://techinbrazil.com/brazil-
ian-mobile-operators-in-a-nutshell
4. Leite, J. (2016, October 26). Fridman Offers $4 Billion to Merge Brazil Carriers Oi, Tim. Retrieved January 26, 2016, from
http://www.bloomberg.com/news/articles/2015-10-26/oi-may-get-up-to-4-billion-from-letter-one-in-tim-deal
5. Czech Republic Just Tops Russia for Mobile Penetration - eMarketer. (2015, February 12). Retrieved February 10, 2016,
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html/?a=viewall
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www.pewglobal.org/2014/02/13/emerging-nations-embrace-internet-mobile-technology/
9. IDC. “India’s Smartphone Market Soars in the Second Quarter of 2015 with the Help of eTailing.” August 2015. Singapore
and India. http://www.idc.com/getdoc.jsp?containerId=prSG25827215
10. Tech2 News Staff. (2014, January 23). Samsung to cut mobile marketing budget relative to revenue - Tech2. Retrieved
January 11, 2016. http://tech.firstpost.com/news-analysis/samsung-aims-cut-mobile-marketing-budget-relative-reve-
nue-216903.html?utm_source=also_read
11. Trai. (2015, May 15). India Mobile Subscriber Stats: 976M Total, 869M Active, 160M MNP Requests [May 2015]. Retrieved
January 12, 2016. http://trak.in/tags/business/2015/07/15/india-mobile-subscriber-stats-may2015/
12. Balanarayan, N. (2013, December 12). Dhingana Ties-Up With General Mobile To Preload Apps On A Million Devices.
Retrieved January 11, 2016 http://www.medianama.com/2013/12/223-dhingana-ties-up-with-general-mobile-to-preload-apps-
on-a-million-devices/
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cle/Tale-of-Two-Asia-Pacifics/1010893
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phone-users/
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16. Swain, W. (2016, January 14). China Unicom, Telecom Join Forces to Vie with China Mobile. Retrieved January 28, 2016,
from https://451research.com/report-short?entityId=87834
17. G. (2015, September). G DATA MOBILE MALWARE REPORT. Retrieved February 10, 2016, from https://public.gdatasoft-
ware.com/Presse/Publikationen/Malware_Reports/G_DATA_MobileMWR_Q2_2015_EN.pdf

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