India is the second largest mobile handset market in the world (after China), and is about to become an even larger market. India is rapidly emerging as a rewarding market for the smartphone industry.
TRENDS IN THE INDUSTRY
- Emergence of Multi-SIM smartphones
- Shift in the OS
- Faster Processor
- Near Field Communication
STATISTICS RELATED TO THE INDUSTRY
According to the International Data Corporation (IDC), the India smartphone market experienced a shipment contraction in the fourth quarter of 2014 for the first time ever on a quarter over quarter basis.
Q4 2014 was seen as a correction phase wherein the smartphone market declined by -4%
This was largely due to a high channel inventory at the beginning of the quarter among general trade, which in turn was caused by the surge witnessed in online sales during festive season.
The feature phone to smartphone transition trend is clearly visible. Smartphones formed a healthy 35% of the overall mobile business in Q4 2014, which is up by 13% from the same quarter a year ago.
In the current market scenario there is a drive in demand for products pitched with high specifications at low price points. This trend is likely to continue over the next four to 6 quarters, after which consumers are expected to turn back to the handset vendors who charge premium for quality
Q1 2015 has been slow, although a few companies which were in the inventory correction phase until now are showing incredible growth in Q1.
“Operators are gearing up for the 4G network rollout. For vendors and ecosystem partners, greater emphasis on 4G enabled handsets at competitive price points will be the order of the day. End-users’ desire to upgrade and keep abreast with the latest technology will continue to drive strong growth for the smartphone market throughout the course of 2015,” said Kiran Kumar, Research Manager, Client Devices, IDC India.
Smartphones made up 35% of overall mobile phones business in the country, nearly three times of its share in same quarter in 2013.
While the overall growth will continue to slow, many markets, especially India, will experience robust growth in 2015 and beyond with global shipment volumes forecast to reach 1.9 billion units annually by 2019, IDC said.
As Chinese OEMs (original equipment makers) shift their focus from the domestic market to the next high-growth markets, they will face a number of challenges, including competition from ‘local’ brands, he added.
FUTURE TRENDS IN SMARTPHONE INDUSTRY
According to IDC, 1.44 billion smartphones are expected to be shipped globally in 2015.
Smartphone shipments are expected to grow 11.3 per cent in 2015, which is down from 27.6 per cent in 2014.
By 2016 smartphone sales is expected to reach approximately 30 Million units.The mature Indian mobile consumers’ increasing preference for high-end handsets and the younger demographics’ desire to use mobile Web technologies could see the smartphone markets revenues soar.
India’s share is estimated to grow from 7.61 per cent in 2015 to 13.29 per cent in 2019.
Growth in smartphones is likely to surpass the overall growth in the mobile handset industry.
BY- Vaibhav Malik
Vaibhav is a student at SSCBS, DU. The views expressed are based upon the analysis and research that the writer did on the topic from various books, reports and web articles. The writer regularly writes for Corporate Monks as a research associate. The writer takes personal responsibility for the ownership of the content shared and incase some sources have not been given credit, you can directly mail the writer firstname.lastname@example.org