India is a key market for many smartphone manufacturers, but it’s a drastically different landscape compared to places like the US or some other European countries where high-end, premium devices typically account for the bulk of sales. Most India buyers are looking for more affordable devices, which is why smartphones like the Moto G have been so successful in the past, and why we’re seeing Google keep their Android One initiative alive.
Some new research has been released about the shape of India’s smartphone market through the first half of 2015, and it makes those trends even more apparent. The top three phones in India so far have been the Asus ZenFone 2, and YU Yureka, and Samsung’s Galaxy Core Prime. All three of these phones are priced below 20,000 Rs, which is also true for all of the top 10 selling phones in India. Bigger manufacturers, including the likes of Samsung, have completely shifted their focus from the high-end market to the sub 20,000 Rs segment.
Because of how low priced the phones are, it’s also created an overwhelming number of competitors. So far in India this year, the country has seen 857 device launches. 2014 saw roughly 1,100, so if that trend continues, the total number of smartphones launched in India should be about 50% than what was released last year.
A common feature that nearly every phone in India shares is a large screen size. Most phones have a screen size of more than 5-inches, which pretty clearly reflects the global market trend of phones getting bigger and bigger.
Some other interesting bits of information about India’s smartphone market also come from how customers view and purchase devices. Over 30% of device views came from phones that were exclusively sold online, which means customers are scouring the internet for the best possible deal on the best possible phone they can find.
India is clearly an important market for many manufacturers, but it’s also an extremely difficult market to stay competitive in. There are tons and tons of options, and margins will continue to shrink as customers demand bigger, cheaper devices. It’s obviously not a market that most companies can afford to step out of, but it’s hard to believe there’s much money to be made in an environment that promotes racing to the bottom in an ocean of competitors.
source: 91Mobiles
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