The smartphone market in India had started growing in the year 2011, and by the 2013 India became the fastest growing smartphone market in the world. That time the marker created a record with 44 million handsets. Now the smartphone makers are also trying to introduce cheaper smartphones to capture more market share. But the new study has informed that the smartphone market in India had been affected by the year 2016. In 2015, the smartphone shipment had gone down to 18 percent from 61 percent. Another possible reason behind such declining smartphone market condition is the demonetization which had affected the smartphone shipment from other countries.
As per the study report given by a smartphone market analyst firm, Counterpoint Research, since last year the growth of the smartphone market is heavily affected by the introduction of 4G enabled feature phone. The 4G LTE feature phone sale is now rising rapidly. The reason behind this, it offers utility apps and easy web browsing interface which make it more popular among the users. Well, the trendsetter for this is the Reliance Jio phones. The device offers a lot of features and comes with many utility apps like smartphones. After, Reliance, now some other domestic smartphone companies like Intex, Lava, and Micromax also have started introducing their feature phones.
The Mobile Marketing Association and Kantar IMRB informed that around 85 percent of feature phone users are not interested to switch to smartphones. With the increasing rate of feature phone users, it is now predicted that the internet users in the country will rise to 500 million in coming times. It is true that 4G LTE feature phones cost less than the smartphones, but the research informed that it is not the affordability factor of people that affect their purchasing decision-making process for smartphones.
The associate director of Counterpoint Research, Tarun Pathak has informed that around 90 percent of phones sold in the country are manufactured locally. It is expected that local manufacturing of phones and higher average selling prices will be the major point for the 2018 smartphone market.
He further stated that localization of smartphone’s components, printed circuit board assembly will get a boost in 2018. People have also started liking refurbished devices, and it is expected that this market also will go up by 30 percent in the current year. In 2018, Rs. 15,000 will be the average amount that people may spend to buy a smartphone, Pathak predicted. In 2016, it was Rs. 10,000 and in 2017, the average price was Rs. 17,000.
Well, it can now say that, in future, feature phones will get more popular as many companies have started entering Indian handset market.