India is now the third largest Smartphone market in the world

June 26, 2013

india flag Sudhamshu

India, second only to China in population, has passed Japan to become the third largest smartphone market on earth. Trailing only China and the U.S., India now sits comfortably behind the two market leaders, and is experiencing a huge uptick in sales growth across the smartphone board.

Android is used on about 90% of hardware made for India last quarter.

With a liberalized economy, more post-secondary education, and a rapidly growing middle class, Indians are seeing themselves with more disposable income. That income leaves Indians the ability to have nicer toys like smartphones, which itself is a booming market.

India is known for fragmentation (they have 22 official languages, and nearly 400 living languages), but also keen to embrace it. That sets the pace for device manufacturing close to home, and brand loyalty to those Indian manufacturers. A name like Micromax or Karbonn may mean nothing to us here in the United States, but they are crucial to India. As a local manufacturer, Micromax has a stealthy distribution chain throughout India, and a leg-up on outside competitors. There are over 100 mobile device brands available in India, and a majority of them are names unfamiliar to our ears.

The booming smartphone market also lends itself to many smaller network providers. India is both densely populated and sparsely traversed, meaning the chances for coverage can be limited to local carriers. There are 14 major carriers listed for India, including two state owned providers. None have over 180 million subscribers, but the middle class is expected to hit about 250 million by 2015, roughly 20 percent of the overall population.

The smartphone market in India is expanding at about 160% annually, compared to overall world growth of about 40%. If you’re doing to math, India is growing over four times as fast as everyone else, even outpacing China (86% growth year over year), and lapping the US handily (19%).

The real fun news in all of this? Android is used on about 90% of hardware made for India last quarter.

Comments

  • Sanket Sonavane

    Yes apart from the big names like Samsung, Apple ,HTC, Nokia, LG with there premium phones we also have a lot of local phone manufacturers like micromax , karbonn , lava , intex , iball and many more.

    Check this http://www.flipkart.com/mobiles/pr?sid=tyy%2C4io&_pop=flyout&otracker=hp_submenu_new_mobile_Mobiles_Seeallbrands

    And thankyou for all your stats i am from India but even i was not aware that we are third largest market for smartphones.

    Android seems to be the most popular smart phone OS atleast in my City (Mumbai)

    Nokia is one of the trusted names in India , only if it were to have Android Phones then it would have surely dominated as i recollect there was a time a few years back when people from all econimic categories would only prefer Nokia over all other brands but with it not rolling Android phones the market is tilted to other brands and a share is also enjoyed by low cost local mobile phone manufaturers.

  • http://ootpapps.com/ Out of the Park Apps

    Need to translate my apps to the native languages!

    • unsickular

      Only Hindi would suffice

  • chirag

    Its not fragmentation its “DIVERSITY” .

  • APai

    Nokia completely lost it by going windows phone only. India was pretty much nokia territory. they must be ruing their decision to hire elop , who only knew microsoft.

  • 윌 스튜어트

    Micromax phones are superb, they actually good hardware for the low end.

  • Arijit Ghosh

    Smartphones use is growing in India because it

    • unsickular

      don’t know which village you live in, but Internet connectivity is pretty wide spread. Some people whine about internet speed, but that’s more of a problem of the private providers. Speed also depends on the money you are paying. Go for cheap service and then cry that the speed isn’t good.

    • Samsul Plur

      Nokia completely lost it by going windows phone only. India was pretty much nokia territory. they must be ruing their decision to hire elop , who only knew microsof cara memperbaiki motherboard laptop
      cara memperbaiki monitor rusak blank

  • unsickular

    LOL…china has like 200 different languages too.. so I don’t see how that’s relevant to this article. Journos should just stick to reporting the news instead of writing crappy essays. Plus, all speak Hindi anyways, so any amount of “fragmentation” is not a problem.