According to data from “The MobileStore” a leading Mobile Handset retailer in India, with a presence across 100 cities through 800 stores, suggests that decline in 3G smartphone prices and data usage evolving beyond social media are helping accelerate smartphone adoption (~10% of handset volumes).
Current 3G smartphone volumes are 2-2.5m/month vs < 1m a year back and only 200-300k a couple of years back. The current economic slowdown hasn’t as yet impacted volumes, though we expect the recent sharp rupee depreciation could dampen uptake as vendors are unlikely to absorb the full currency hit. Interestingly, while the overall replacement handset cycle is ~24 months, it is ~15 months for smartphones, despite their higher Average Selling Price. Continue reading 3G SmartPhones Sales Rising in India – Hurdles Exist for large Scale Data uptake
In conversation with Micromax, leading Mobile handset manufacturer in India and with distributors like Redington, we get a sense of the real mobile handset market adopted by the masses. Wireless Operators are trying to encourage smartphone adoption (which consequently helps push data services) by lowering entry price point, bundling data & offering financing options, uptake is yet to pick-up pace and is constrained by the still high smartphone entry cost and telcos reluctance to give handset subsidies.
Smartphone penetration in India currently stands at 9% of the total handset sales of ~200m pa in India but is inching up. Samsung, with its wide product portfolio of Android Mobiles and aggressive Marketing focus, is the market leader in the segment (~50% share) followed by Micromax (~25%). The Average Selling Price of entry level smartphone in India is still greater than Rs 6,500 and hence the constraint in large scale adoption. Continue reading SmartPhone Penetration Rising in India, Entry Cost a Barrier for Mass Adoption