Indian Handset Industry Might Post Single-Digit Growth In 2020

After becoming the second-largest handset market in the world, the Indian mobile industry is likely to post a single-digit growth next year. As buyers are likely to go for affordable smartphones and stick to them. In fact, market research firm Tech Arc, highlighted that there will be a 2 percent dip in sales in 2020 as compared to 2019.

On the other hand, another research firm Counterpoint pointed out that the market will register a 6 to 9 percent dip in the overall sales. Similarly, IDC expects that there will no double-digit growth next year.

"There are about 450 million smartphone users as compared to 550 million feature phone users in India. About 40-45 percent of feature phone users own a device at less than Rs 1000. So the cost of ownership, the lack in internet literacy and the rigidity that feature phones have are holding the users back from buying a smartphone," said Navkender Singh, Research Director, IDC India was quoted by the Economic Times.

Singh believes that people are not replacing their phones regularly. The replacement cycle has been increased to 16-20 as against 12-16 months. Likewise, TechArc's co-founder Faisal Kawoosa intimated that people are spending more money on smartphones and this is natural that they will use the device for a long time. He said that the spending power of buyers has been increased.

Meanwhile, Counterpoint pointed out that the iPhone XR is the top-selling smartphone in Q3 2019. The smartphone has registered a 3 percent market share. It said that iPhone XR contributed a lot to the Apple sales, during the quarter.

In fact, the company has adjusted prices of the smartphone in China and many markets. Notably, the firm highlighted that the iPhone 11 comes under 10 within the launch quarter. However, the firm said that when it comes top 10 models Samsung has three models in that list.