India is on track to corner a 13.5% share (approximately 180 million smartphones in circulation) of the total global smartphone market by 2019, up from 7.5% today.
This was revealed by a joint study conducted by the Associated Chambers of Chambers of Comerce & Industry of India (ASSOCHAM) and KPMG.
The study noted that the advent of affordable smartphones designed for the Indian user and low-cost data connectivity options, more people are shifting to smartphones and mobile Internet.
The average selling price of a smartphone in India in 2015 was 12,285 rupees ($183.70), a 25% year-on-year increase. The affordable models sell between 3,000 rupees and 10,000 rupees ($44.80 to $149.50).
“The smartphone shipments in India grew a healthy 23% annually in the first quarter of 2016 compared to the global growth, which stalled for the first time ever since smartphones first began to sell,” ASSOCHAM said in a report posted in its website.
“The increase in smartphone sales has changed the face of e-commerce industry in India in the last two years,” it added. “Mobile transactions accounted for 41% of total e-commerce sales in 2014. Developing a mobile (sometimes mobile only) strategy has been an important agenda for many of the leading e-commerce players in the country over the last two to three years.”
The government has launched its ‘Digital India’ initiative in July 2015 for the different stakeholders to work together to transform the economy. Several international device vendors have also set up manufacturing facilities in India, supporting the government’s ‘Make in India’ initiative aimed at boosting local manufacturing.