Micromax, one of the leading smartphone maker, predicts that 2016 will be the year of videos and large screens. It also says that demand for cheaper smart phones will increase and also India will continue to have 3G and 2G users for the next few years. New business models will emerge ensuring unit level profitability because of the entry of new Indian and Chinese brands in mobile phone manufacturing market. Due the implementation of GST (Goods and Service Tax), the entrance of Chinese companies will become difficult.
The study also suggested that there will be a growth in mobile internet ecosystem with more than 150-200 million smart phone users. The key driver of the growth will be relevant services and availability of them in various Indian languages. Ecommerce might flatten out as pointed out by the study. The reach will improve and newer towns will be included. As there will be growth in first time smart phone users, ‘massification’ of smart phones will continue. The growth is however dependent on access costs, vernacular usage and powerful distribution and awareness. Even after the proliferation of 4G-enabled devices in the recent past, at least for a few years, there will be 3G and 2G users in the market.
An auction of LTE (4G) centric spectrum is scheduled to be held in 2016 which will play an important role in building Digital India. The market was dominated by Samsung and Micromax manufacturers in last year which ramped up domestic manufacturing. The smart phones will have wide availability of content, data network, personalisation and hardware like large screens. Smart phones, according to the report, will now be a preferred source for video consumption. The report also added that mobile-led services will become mainstay across various sectors like healthcare, banking, travel and entertainment.
