India An Attractive Market For Device Manufacturers: Gartner

by CXOtoday News Desk    Apr 21, 2017

With smartphone penetration maturing in many developed markets, continued growth in the world’s third largest smartphone market makes India an attractive market to device manufacturers, states Gartner.

As the Indian cellular market goes through consolidation and aggressive 4G roll out, demand for smartphones will continue to grow. Smartphones in India are expected to account for 62 percent of all mobile phones sales in India in 2018, noted the study.

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 “With the slowdown in sales in major markets, including the US, China and mature Western Europe, India represents the largest opportunity because it is the second-largest mobile phone market after China,” said Anshul Gupta, research director at Gartner.

In addition, demonetization in India through the elimination of 500 and 1,000 rupee notes caused an increased push from the government for digital currency, as well as people becoming more open to using digital payment methods. The rise of digital currency is bringing a new use case for smartphones, which, in turn, is set to trigger higher demands for smartphones.

This opens the opportunity for service providers to launch mobile wallet solution or even vendors to launch their exclusive mobile payment solutions like Android Pay or Apple Pay to build an ecosystem.

Leading global vendors, Samsung and Apple, have made exclusive plans to grow their shares in the market. Major Chinese manufacturers, such as Gionee, Huawei, Oppo, BBK (Vivo), Xiaomi, Lenovo etc., have committed big investments to exploit the growth opportunity, highlights the report.

Ever rising competition from Chinese manufacturers has not only troubled top local brands such as Micromax, Intex, Lava and Karbonn mobile but also resulted in a decrease in smartphone market share for Samsung in India (see Table 2).

“With an exclusive focus on the market from the device manufacturers, we expect more customized smartphones to come to market and remain key to win in this highly competitive market,” said Gupta. 

 As opposed to earlier falling mobile phone average selling price (ASP) trends led by the rush to low cost mobile phone, we have noted a change in consumer spending. A recently concluded Gartner consumer survey showed, users are willing to spend more to get a smartphone with better features than simply rushing for lowest price smartphones.