After 20 years of reign Indian Smartphone sales encounters decline

After 20 years of reign Indian Smartphone sales encounters decline

It felt very shocking to observe decline in Smartphone sales in India which was increasing at an alarming rate since last twenty years.  It raises a big question that what slowed down this aggressively increasing market which was going on like a tornado. The sales drop can be observed easily when we take a look at Q4 2014 in which 62 million handsets were sold as compared to Q1 2015 where only 53 million handsets could take off. The overall Smartphone sales are estimated to be dropped by 14.5%. Although India is the 2nd largest Smartphone market after china where 204 million Smartphone users are currently active and majority relying on midrange Smartphone’s, yet the low end Smartphone market saw the decline of 18.3% quarterly which was very surprising. 

The tech intellectuals believe that there are a huge bunch of factors associated with the decline of Smartphone sales in India which include unexcitingly configured Smartphone’s, higher competition, tax related problems etc. However practically the real problem is the higher competition, In India US brands, Korean brands, India’s native Smartphone brands are alarmingly showcasing their Smartphone’s, the competition got even worse when few brands from china introduced highly configured Smartphone’s at lower prices and thereafter this segment of Smartphone’s saw rapid succession and now the result expectedly is the saturation in the market.

 Another factor put forth by an analyst regarding the sales drop is the every big newsmaker Smartphone was launched in Q4 2014 whereas nothing special was left for Q1 2015 which could have maintained the record breaking Smartphone sales in India. Besides this factor, Government also increased the excise duty on Smartphone’s from 6% to 12.5% which overall raised the price of handsets by 4% approximately and this also affected Smartphone sales in India.

It is also being said that India is the fastest growing internet community where the introduction of flash sales by few Chinese brands fluctuated the market and result became variable. The rest of the proud Smartphone manufacturers like Samsung is also being advised to lay strict focus on developing strong online marketing strategy which is currently being exploited by Chinese brands wholly. 

However the overall market fluctuations are the general things to be noticed nowadays because the Smartphone market India besides saturation is getting conscious towards picking the best Smartphone’s which is leading to increased competition among different firms and these will continue to act same way unless everyone becomes strong in both manufacturing and marketing strategy.