India Needn't Worry If Global Smartphone Market Dips

by CXOtoday News Desk    Sep 22, 2016


Global smartphone market is expected to slow down by 2016-end. But that doesn’t mean India has to worry. In fact, India is shaping the global smartphone market, believe researchers. Western smartphone makers, like Apple and Google, are increasingly looking east for growth, giving countries like India a great hope for the coming years. 

According to Research Analyst firm Gartner, the smartphone market has reached 90 percent penetration in the mature markets of North America, Western Europe, Japan and Mature Asia/Pacific, slowing future growth. Furthermore, users in these regions are not replacing or upgrading their smartphone as often as in previous years. 

“In the mature markets, premium phone users are extending life cycles to 2.5 years, which is not going to change drastically over the next five years,” said Roberta Cozza Gartner analyst, adding that growth was at its peak in 2010, with the highest growth rate of 73 per cent. The global smartphone shipments are expected to slow down in 2016, despite a 20-per cent increase in the first half of 2016.

In an earlier report too, Gartner said that the smartphone market will shrink from 14.4 per cent growth in 2015 to just 7 per cent in 2016 with only 1.5 billion smartphone units being shipped globally this year. The stagnancy in the market and too many players loosing on technological innovation are the key reasons attributed to the slowdown in the industry. The smartphone industry is stagnant in the developed markets and reaching at a point of saturation in China. However, emerging economies such as India have kept the hopes of smartphone vendors alive.

Other research firms also see a similar trend in India’s growth in the smartphone space. India has the fastest-growing smartphone market in the world, accounting for 27.5 million devices sold in the second quarter of 2016, up 17 percent from the second quarter of 2015, according to IDC. This growth came as a result of increased sales through online retailers such as Flipkart, Snapdeal and Amazon, said an IDC report

“Online share spiked to 37.3 percent in 2015 Q4, growing 2.5 times over the same period last year with almost half of the contribution coming from online exclusive models,” said Karthik J, Senior Market Analyst, Client Devices at IDC.

Mobile subscriptions are expected to hit 1.4 billion by 2021, according to the Ericsson Mobility Report, released in June. 

In August Counterpoint Research, the Q2 shipments of smartphones reveal that Chinese phone brands have grown 80 per cent, in terms of shipments to India, in the Q2 of 2016. The data published is a part of the report by Counterpoint, which also reveals that the smartphone shipments in India grew at 15 per cent in Q2 of 2016, compared to the global smartphone market, which grew at just 3 per cent.  In terms of overall market share, Samsung leading at No.1, followed by Micromax at No.2, Intex at No.3, while No.4 was jointly held by  Lava and Lenovo.