Mumbai Capital

‘India is a bright spot in global smartphone scene’

Worldwide, smartphone sales are expected to grow 7 per cent, down from 14.4% in 2015.— File photo: AP  

Global smartphone sales will continue to slow and no longer grow in double-digits, Gartner Inc. said. The researcher also said India would be one of the bright spots.

Worldwide, smartphone sales are expected to grow 7 per cent in 2016 to reach 1.5 billion units. This is down from 14.4 per cent growth in 2015. In 2020, smartphone sales are on pace to total 1.9 billion units.

The smartphone market has reached 90 per cent penetration in mature markets like North America, Western Europe, Japan, and also the mature sections of the Asia-Pacific region, slowing future growth, the firm said.

Furthermore, users in these regions are not replacing or upgrading as often and nature markets are saturated, hence the focus for many vendors is on the consumers in India and China.

Smartphones are expensive for users in India, but with average selling prices (ASPs) of low-end models falling, Gartner estimates that 139 million smartphones will be sold in India in 2016, growing 29.5 per cent year on year. ASPs of mobile phones in India remain under $70, and smartphones under $120 will continue to contribute around 50 per cent of smartphone sales in 2016, it said.

A presentation by Mary Meeker of the venture capital firm Kleiner Perkins Caufield & Byers last week said tht at $158, India already has among the lowest average smartphone prices in the world, with only Bangladesh among the surveyed countries, lower at $123.

At the same time, the cost of a smartphone in India, as a percentage of gross national income per capita, is among the highest in the world.

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Printable version | Nov 26, 2020 6:33:29 PM | https://www.thehindu.com/news/cities/mumbai/business/%E2%80%98India-is-a-bright-spot-in-global-smartphone-scene%E2%80%99/article14392617.ece

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