Smartphone Adoption in India, at an All Time High

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  •  Apr 10, 2015
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Zinnov released a study which says India is at the cusp of digitization, mainly driven by mobility.

Growing competition resulting in price reductions; the ease of access of content and language localization; government Incentives through “Make in India” and prevalence of internet-enabled services on smartphones are some of the reasons for this propelling growth. 

The released study read that approximately 81 million smartphones were shipped in the year 2014, making it a 51% Quarter-on-Quarter growth. Smartphones are already outpacing the growth of feature phones and are expected to show a massive 36% CAGR over the next 5 years making it to the 651 million mark by 2019. 

The unstoppable surge of smartphones in India continues with 29% of urban population with a base of 409 million users adding to its adoption. Smartphone users in Mini Metros and Tier-I / II cities show an evolved usage of smartphone, similar to that of Large Metros. 

Putting light on the vendor scenario, the released study said that home grown vendors though commanding a major share, are facing a stiff competition from chinese vendors. It read that while Chinese brands are gaining prominence, with Xiaomi recently surpassing all other brands in sale of 4G LTE smartphones; Micromax is also threatening the dominance of Samsung in the domain.  

Smartphone vendors are also adopting new and innovating Go-To-Market(GTM) strategies like Online Exclusive (eg: Motorola on Flipkart), Experience centres to facilitate customer experience (eg: #100 experience centres planned by Xiaomi in India), Brick & Motor model where vendors are pushing retail expansion (eg: # 250 retail stores planned by Gionee in India), and hardware differentiation in order to gain traction in the highly competitive Indian market.

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