India is the second largest user of smartphones in the world with approx 220 million users after China with 563.3 million users by the 2016 year end. There are more than 150 mobile phone brands, which are competing in the Indian market to gain the attention of users. Still, only 30% of Indian Population uses a smartphone and thus, more mobile brands are entering the Indian Market in every quarter and it is estimated to rise in the near future.
According to a study conducted by ASSOCHAM-KPMG, the present share of India in Global smartphone market is expected to reach a level of 13.5% with around 180 million units by the end of 2019 from a mere 7.6% at present.
“Thanks to digital revolution riding on the aggressively priced mobile data packages, India is expected to have a total number of 180 million smartphones by 2019 claiming 13.5 percent of total global smartphone markets from 7.6 percent at present,” industry chamber ASSOCHAM said in a statement.
The study shows that the availability of low range smartphone between Rs. 3,000 to 10,000 by the local manufacturers and the low-cost data connectivity options are the basic reason for shift of users to the smartphones rather than the normal bar phones.
The study said, “Out of a total handset sale of 30 crores units in the financial year 2015, smartphones contributed 11.40 crores units, i.e., 38 percent. This contribution is projected to grow to above 50 percent by 2020.”
Not only urban, but the industry is also targeting towards attracting the rural India for the continued growth of the market. It is miraculous to see the unbelievable growth of Indian handset manufacturing companies in the last five years.
“India manufactured 11 crores mobile phones worth Rs. 54,000 crores in the financial year 2016, showing a year-on-year growth of 83 percent and 186 percent, in volume and value terms, respectively,” the statement said.
It is depicted that the share of domestic smartphone manufacturers is depicted to grow further.
The study claims that “Out of 235 million handsets shipped in 2015, 40 percent were smartphones and are projected to constitute 60 percent of total mobile handset sales by 2020. The smartphone shipments in India grew a healthy 23 percent annually in the first quarter of 2016 compared to the global growth, which stalled for the first time ever since smartphones first began to sell.”
Due to this, the e-commerce industry has also changed the way of doing business in India like never seen before. It is also depicted that, “Mobile transactions accounted for 41 percent of total e-commerce sales in 2014. Developing a mobile (sometimes mobile only) strategy has been an important agenda for many of the leading e-commerce players in the country over the last two to three years.”
