India among top five country markets for smartphone shipments by 2016

by CXOtoday Staff    Mar 15, 2012

Smartphone shipments to emerging markets will drive growth in the worldwide smartphone market in the years ahead, reveals IDC.

Looking ahead to 2016, India along with Brazil will enter the top five country markets for smartphone shipments, according to research firm IDC.

IDC said that the Indian smartphone market will witness galloping growth throughout the forecast period.

“Demand for smartphones will also grow as urban and enterprise users mature in their handset preferences and usage,”said G. Rajeev, Senior Market Analyst for mobile devices with IDC India. “Consumers are growing accustomed to higher data usage and using handsets for entertainment and other content, instead of just as a communication device.”

The report said that carriers are expected to aggressively roll out 3G networks and data plans.

Domestic vendors such as Micromax, Spice, Karbonn and Lava have already launched low-cost smartphones in a bid to drive future demand as they attempt to move up the value chain from low-cost feature phones. In 2011, growth was largely driven by top-tier brands like Samsung and HTC, and international vendors will look to invest further in local manufacturing in the coming years as the high-growth Indian market becomes a top priority, the study revealed.

As per the IDC Worldwide Quarterly Mobile Phone Tracker China will become the leading country-level market for smartphone shipments in 2012, moving ahead of the current leader, the United States.

“Due to their sheer size, strong demand, and healthy replacement rates, emerging markets are quickly becoming the engines of the worldwide smartphone market,” said Ramon Llamas, Senior Research Analyst with IDC’s Mobile Phone Technology and Trends team. “Users in emerging markets seek more than simple voice telephony, and smartphones offer the ideal platform for mobile entertainment, social networking, and business usage as seen in developed markets.”

Meanwhile, mature markets, such as Japan, the United Kingdom and the United States, will experience continued growth in smartphone adoption, but volumes will not keep up with those destined for emerging markets, IDC said.