According to CMR report this year we will be seeing 44 percent growth in sale of smart phones costing less than INR 10,000. This will constitute to 70 percent of the market. Research firm states that last year smart phone shipment in the country was 97 million and this year it is expected that nearly 130 million smart phones will be shipped in the country. It said the entry-level or sub-Rs. 10,000 accounted for 75 per cent of the market in calendar year 2015 with 153 brands shipping in the price bracket.
It added that for 2016, the sub INR 10,000 segment is forecast to constitute about 70 per cent of 130 million shipment which is 91 million. The report said that the sub-Rs. 10,000 segment is expected to grow at 44 per cent, driven by consumers upgrading from feature phones to smart phones. The mid-tier segment that is sub INR 10,000 to INR 20,000, that had seen de-growth last year is expected to remain flat this year and therefore will constitute 13 per cent of the total market share. Last year, with 46 brands shipping in the price bracket the mid-segment accounted for 18 per cent of the Indian market, the report said.
The high-end category that constituted of devices costing more than INR 20,000 constituted nearly 7 per cent of the market in 2015 comprised of products of 19 different brands. It said that the above Rs. 20,000 segment is expected to grow at 19 per cent in 2016 compared to 15 per cent in previous year. This segment is expected to gain significance as smart phone upgrade becomes main driver of growth for overall market. It is forecast that in 2016 the premium devices will account for 6 per cent of the market that is approximately 7.8 million units.