Why is India's smartphone market tumbling? |Teji Mandi Explains

The Indian smartphone market dipped to a 3-year low from July to September, which can be a matter of concern for mobile manufacturers in India.

Teji MandiUpdated: Thursday, November 24, 2022, 06:47 PM IST
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Why is India's Smartphone Market Tumbling? |Teji Mandi Explains | Photo: Pexels

In Q3FY22, India’s smartphone market tumbled by 10% to a 3-year low. What might be the reason behind this?

Let’s find out.

What’s happening?

When it comes to using phones, everyone prefers a smartphone. The government consciously encourages producers to manufacture smartphones in India through its Production Linked Incentive Scheme. The result of the scheme was quite spectacular too. Under the scheme, Rs 35,541 crores have been approved for mobile manufacturing and specified electronic components. Moreover, the introduction of 5G gave the required boost to mobile manufacturing companies.

Amid good news, the Indian smartphone market dipped to a 3-year low from July to September, which can be a matter of concern for mobile manufacturers in India.

Reason Behind the Fall of the Indian Smartphone Market

Increase in device cost

According to News18, until October 2022, most mobile manufacturers in India were selling smartphones at a loss. They were in losses because of the increasing value of the dollar. Soon, they will pass on the increased cost to the customers to survive in the industry. An increased device cost might be the reason behind the slump in sales.

Introduction of 5G

As 5G is still a work in progress in India. It is operational only in a few cities. Hence, people prefer to buy a 5G phone instead of a 4G phone. Apart from this, there are many states where implementing 5G will take time. Hence, individuals may also wait for 5G to become fully operational before buying a new phone.

What’s next?

Before 5G was introduced, India’s smartphone market saw a decline of just 1% in the first half of 2022.

According to Financial Express, smartphone companies will soon discontinue manufacturing 4G smartphones over Rs 10,000 and move on to 5G completely. And once we see a full-fledged implementation of 5G across India, it is expected that India’s smartphone market might return to normal.

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