By 2016, India To Become No.2 Smartphone Market

by CXOtoday News Desk    Dec 23, 2014

smartphones

2016 is not far away and research firm eMarketer predicts that India may surpass the United States to become the second-largest market for smartphones globally by then. The growth is attributed to device makers offering affordable handsets, it said in the report.

According to the research firm, increasing penetration of affordable smartphones in emerging markets will help smartphone users worldwide surpass the 2 billion-mark in 2016. As predicted, India will exceed 200 million smartphone users, which would mean, topping the US as the world’s second largest smartphone market in the next 2 years.

eMarketer analysts believe that cheaper smartphones are opening new opportunities for marketing and commerce in emerging markets where many consumers previously had no access to the Internet. However in mature and established markets, smartphones are quickly shifting the paradigm for consumer media usage and impressing the need for marketers to become more mobile-centric, the company said in its report.

According to the report, China will continue to lead the rankings in 2016 with 624.7 million smartphone followed by India (204.1 million), the US (198.5 million), Russia (65.1 million) and Japan (61.2 million).

eMarketer notes that for the first time, more than a quarter of the global population will use smartphones in 2015 and by 2018 over one-third of consumers worldwide (or more than 2.56 billion people) will do so, as the report aid that smartphone users globally will surpass 2 billion in 2016 after nearly getting there in 2015.

In the next one year, there will be over 1.91 billion smartphone users worldwide, a figure that will increase another 12.6 percent to near 2.16 billion in 2016, eMarketer said. Likewise, the number of active smartphone users around the world hit the 1 billion-mark in 2013 (1.31 billion) with China leading the tally at 436.1 million, followed by the US (143.9 million), India (76 million), Japan (40.5 million) and Russia (35.8 million).

Meanwhile, in 2014, China will have an estimated 519.7 million smartphone users followed by the US at 165.3 million, India (123.3 million), Japan (50.8 million) and Russia (49 million), the research firm added.

India’s position will continue to strengthen in telecom, as consultancy firm PwC predicts that  the 4G subscriber base is expected to reach 10-15 million by December 2015 in the country. In a forecast of key trends in the Indian telecom sector in 2015, PwC India said, “We expect 4G LTE subscribers to reach 10-15 million by December 2015 driven by competitive pricing, superior network experience and affordable smartphones.”