Smartphone penetration in India low, China leads: IDC

FRAMINGHAM, USA: According to a research done by market research firm, IDC, China, U.S., India, Brazil and the United Kingdom are the Top 5 markets for smartphone shipments. Though the smartphone penetration in India currently among the lowest in Asia/Pacific, the market in India seems to have great potential for future, says IDC. 

IDC believes that, the smartphone adoption will grow rapidly in India with the introduction of low end smartphones priced around $100.

As per IDC, China will surpass the United States in the smartphone market, this year. While US will account for 17.8 per cent of all smartphone shipments, China will account for 26.5 per cent in 2012.

"Looking ahead, the China smartphone market will continue to be lifted by the sub-Rs.10,928.96 ($200) Android segment. Near-term prices in the low-end segment will come down to Rs.5,464.48 ($100) and below as competition for market share intensifies among smartphone vendors.

Carrier-subsidized and customised handsets from domestic vendors will further support the migration to smartphones and boost shipments. Looking ahead to the later years in the forecast, the move to 4G networks will be another growth catalyst,” said Wong Teck-Zhung, senior market analyst, Client Devices, IDC Asia-Pacific.

"Regionally, we expect smartphone demand to flow down to lower-tier cities. After going through a period of sustained high growth, top-tier cities are likely to see decelerating smartphone growth rates. In contrast, secondary cities are expected to experience accelerated smartphone growth, with strong demand for low-cost models as well as high-end models, which are desired as status symbols,'' explained James Yan, senior market analyst for Computing Systems Research at IDC China.

"The fact that China will overtake the United States in smartphone shipments does not mean that the U.S. smartphone market is grinding to a halt," said Ramon Llamas, senior research analyst with IDC's Mobile Phone Technology and Trends programme. "Now that smartphones represent the majority of mobile phone shipments, growth is expected to continue, but at a slower pace. There is still a market for first-time users as well as thriving upgrade opportunities."

"In addition to China and the United States, several other countries will emerge as key markets for smartphone shipment volume over the next five years," said Kevin Restivo, senior research analyst with IDC's Worldwide Mobile Phone Tracker program. "High-growth countries such as Brazil and Russia will become some of the most hotly contested markets as vendors seek to capture new customers and market share."