Indian Smartphone market is in
full swing with higher adoptions. Most of the companies operating in the
segment are flooded with opportunity to sell more Smartphone. Smartphone
players must thank Reliance Jio for their service launch and acquisition of 16
million user in the first 30 days of service launch. Based on the Counterpoint
market research data, India Q3, FY 17 reached 35 million. We should also expect
that IDC and CMR will come out with similar number. As per E2E Infotel
Analysis, Indian Q4, FY17 will be 33 Million.
The positive feel good factor
within Indian consumer also indicate very good festival sale in offline and
online mode. It is interesting that how most of the Smartphone companies
are spending lavishly in advertisement as well as in developing their own
manufacturing hub to ensure that they don't miss the opportunity due to
component or inventory shortage.
It is overwhelming that Indian
Smartphone Segment started showing promise after few quarter of lull but
Smartphone player must be very careful given the total addressable market size
of Smartphone in India.
As per E2E Infotel Analysis projection, Indian Smartphone Shipment during FY17 will reach 110 million. In
the last 2 years, Smartphone shipment reached total number of around 160 Mn
excluding the Smartphone being sold through the grey market.
Given the certain limitation in
Indian geographies such as poverty ( <20% of total population), illiterate
population (<30% of total population) land us to total addressable market of
around 550 Mn userbase. Based on the current Mobile Internet userbase of around
325 mn , only 60% of the them uses internet regularly.
It is expected that Indian
Smartphone Segment saturation will hit India by Q2, FY18 wherein we will
observe steep decline in Smartphone segment. That will lead many Smartphone
players assembly line idle & will lead the sector in similar situation the
way China faced it Q2, FY16.
We all know that most of the
Chinese players are spending lavishly and are not profitable but at the same
time, Chinese Smartphone players are deep pocketed and can sustain the
downturn. The expected hard landing in Smartphone segment may lead to closure of
many Small players whereas many other will consolidate their positioning.
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