Was the smartphone boom in India overrated? CyberMedia Research, a frontrunner in market research in India, has come out with a disillusioning report.
According to the CyberMedia report, sales volume in the first quarter of 2015 is less than 14.5% than the sales in the last quarter of 2014. Sixty-two million mobiles were sold in Q4 2014 whereas only 53 million mobile phones could find buyers in Q 1 2015.
The mobile manufacturers were expecting a continuous upward growth in mobile phone sales that could reach 204 million smartphones in 2016. Their hopes for a rosy future are now belied. Mobile manufacturers, telecom operators and service providers are truly disgruntled now.
Report by CyberMedia reveals the drop in feature phones is 18.3% drop as while dip is 7.14 % for smartphones. Experts are trying to find out whether this is merely a cyclical change or a clear indication for the future?
This report has come up in light of another turn of events where Myntra’s sales have dipped 10% for its App only stunt. Now the question arises has mobile phones sales dip has affected Myntra’s sales? Or Myntra’s feat of dropping its website and go with only App was a bad decision? Well it’s another open story.
Coming back to the topic what are the factors involved in this fall in sales?
Marketing researchers at Digital Solutions, a leading digital marketing agency based in Bangalore, have found out the new Narendra Modi’ government’s economic policy “Make in India” is one reason. Excise duty on mobile phones has been increased from 6% to 12.5% making them costlier by 4%.
Moreover, no new phones with exciting features that will prompt people to throw away their existing phones and grab a newly introduced one have hit the market in in the first quarter of 2015. Feature phone sales have dipped as more people prefer Internet-enabled handsets.
We think the present slowdown is just a harbinger for a boom in sales. Indian society is fast turning an affluent one and getting penetrated by Internet. Consumers may be waiting for more sophisticated smartphones which cater to their specific needs. Gradually, the mobile manufacturing industry will get used to the increase in excise duty and pick up sales again.
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