Lower-priced models drive explosive smartphone growth in India

IDCIndia’s smartphone market grew an astounding 229 percent year-on-year in Q3. According to IDC’s APEJ Quarterly Mobile Phone Tracker, vendors shipped a total of 12.8 million smartphones in Q3 compared to 3.8 million units in the same period of 2012. Q3 also saw an increase of 28 percent over Q2.

The 5.0- to 6.99-inch screen size smartphones continued to show sustained growth, contributing 23 percent of the overall market in terms of volume.

The overall mobile phone market (feature phones and smartphones) had a 12 percent growth year-on-year and a seven percent growth quarter on quarter with the share of feature phones sliding further to make 81 percent of the total market in Q3 despite the feature phone market growing at three percent growth over the previous quarter.

Source: IDC Asia Pacific Quarterly Mobile Phone Tracker, Q3 2013

The third quarter of 2013 witnessed a slowdown in the numbers for top local vendors such as Micromax and Karbonn – while international vendors such as Samsung and Nokia powered by their new product launches made up for close to 30 percent of the overall market in Q3.

“The growth in the smartphone market continues to drive the overall growth numbers for the phone market – given that there’s still a huge potential for smartphone penetration in India, this trend is expected to continue in the coming quarters,” said Manasi Yadav, Senior Market Analyst of IDC India.

“The change agents for this rapid shift of consumer preference towards Smartphones have been the narrowing price gap between Feature phones and Smartphones. The Smartphone market is expected to maintain these elevated levels of growth in the near future,” said Kiran Kumar, Research Manager of IDC India.

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