The year that has just begun will be the year of large screens and videos, the demand for cheaper smartphones will grow and 3G and 2G users will continue to co-exist over the next few years in India, Micromax, one of the country's leading smartphone makers, has predicted.
In 2016, entry of Chinese and Indian brands in mobile manufacturing market would be a key driver for new business models to emerge to ensure unit level profitability, the Micromax study noted, adding that it may be difficult for Chinese companies to enter and flourish if the Goods and Service Tax (GST) is implemented.
It also pointed out that e-commerce might flatten out and mobile internet ecosystem would grow beyond the 150-200 million smartphone users. "The massification of smartphones will continue in India to keep on catering to the needs of first time smartphone users and the growth will depend on vernacular usage, access costs and penetrating distribution and awareness," the findings showed.
Although the country saw the proliferation of 4G-enabled devices, 3G and 2G users will continue to co-exist over the next few years. "The auction of LTE (4G) centric spectrum in 2016 could make 4G to play a crucial role in building Digital India," it noted.
Samsung and Micromax dominated the handset market last year by ramping up domestic manufacturing. Shockingly, the study said that in 2016, e-commerce websites may flatten out as these platforms will cut back their cash burns.
However, the reach will expand to newer towns. The study pointed out that with the wide availability of data network, content, personalisation and hardware such as large screens, smartphones will become a more preferred source for video consumption in 2016.
Mobile-led services across sectors like entertainment, travel, healthcare and banking will become mainstay and mobile internet ecosystem will grow beyond the 150-200 million smartphone users. The key to this growth will be simplification through relevant services and availability of these in various Indian languages, the study said.