Indian Smartphone Market Outlook 2015 :
India has been a lucrative market for Mobile vendors for long time. For the last three years, India Smartphone users have grown tremendously.
Lets have a look at India in two ways : Overall and Region wise scenario
Overall Indian Smartphone Market :
2011 : 10.2 mn
2012 : 16 mn
2013 : 42 mn
2014 : 84 mn ( Q1 2014 – 17.59 mn vs 6.2 mn – Q1 2013 )
2015 : 125 mn ( Expected ) ( Calculated mainly on new users shifting from FP to SP )
2016 : 160 mn ( Expected )
Region wise Market share – Smart Phone :
North : 33 %
East : 12 %
West : 28 %
South : 27 %
From the above figures, Its very obvious, India alone got lot of potential in coming years as by 2018, we expect almost 33 % penetration of Smart Phones.
Key Segments which will impact Indian Smartphone Market growth in 2015 :
1. Home Segment : Housewives , Till now no company is concentrating on this segment. But this segment will surely contribute to around 10 %. Key criteria for this segment are Big screen ( 5″ + ) + applications like FB, Whatsapp & Games. Price of mobile between 10000-15000. Funny point is ” Mobile phone shows Husband’s Status. ”
2. Techie Kids : Another segment which is growing at a fast pace. Addicted to games, social media, Videos and show off. Key deciding factor is parents disposable income. Screen size 4.5″ – 5.5″. More addicted to Phablets. Age group between 12-20. Love to explore new phones. Brand does not matter much. Best example is Yu, Xiaomi. May be around 10 %.
3. Young Executives : More disposable income and no liabilities. Love to get the best. Applications used are Social Media and Office. Price does not matter. Age group 23-30. Price range varies a lot starting from 10000 – 30000.
4. Trend setters : Mixed age group. High Disposable Income. C level Executives, Richie Rich. This segment can buy any phone starting from LG Flex to Note Edge or Vertu. Hardly 5 % Market Share.
5. New Entrants : This segment is the key in Indian Smartphone market. Contributing to almost around 60 – 70 % of Market. Highly price conscious. This also includes persons shifting from Feature Phone to Smart Phone and upgrading one step up.. This segment is divided in two parts. Below 6000 and 6000-10000.
I wanted to use VALS Frame work for this , but ,somehow ignored.
Indian Smartphone Market Brand wise :
Samsung : With 24 % market share Samsung continues to be the market leader in the Smartphone segment. Samsung has witnessed shipment growth in Q3 2014 but the growth is noted to be lower than the industry average. Hence, there is a contraction in their market share.
Micromax : Micromax’s market share has increased from 18% in Q2 2014 to 20% in Q3 2014. Can we expect Micromax to lead Indian Smartphone Market in 2015. Answer seems to be yes. Micromax needs better strategy for two Brands Xiaomi and Karbonn. Key concentration on how to promote Yu and turn it to be best seller.
Lava : Being one of the fastest growing handset vendors, Lava has witnessed growth in both their brands i.e. ‘Lava’ and ‘Xolo’. Both the brands are currently treated as independent line of business in the marketplace. Though Xolo has been continuously loosing market , sharp drop from 130 Cr to 60 Cr.
Karbonn : Consistent growth has been observed in Karbonn smartphone shipments. Karbonn and Lava have been very strong in the range of 6000-8000 Rs.
Motorola : Already selling over 1 mn handsets in a short span of time.
Xiaomi : Not to underestimate Xiaomi , Already sold around 64 mn handsets by 2014, For sure Xiaomi will target 100 mn in 2015 and with key focus in India and Latin America. CEO Lei Jun, known as Steve Jobs of China ( Not fair to mix two personalities as Lei Jun should be known as Man who made Xiaomi ) will surely dominate Indian market with the rage Rs. 4999 – 8999.
Nokia : No big expectations from Nokia but Lumia will continue to dominate.
India smartphone market has been a target always not only because of Volume but its becoming a platform for launching Premium Segment of SmartPhones.