India Now Has Over 50.2 Crore Smartphone Users, 77% Indians Use Internet

India now has more than 50 crore smartphone users, which is 15% higher than the number in 2018, mainly because brands like Realme and Xiaomi keep getting more new users, according to a Thursday report.

Market research company techARC reported that as of December last year, there were 502.2 million smartphone users in India, meaning over 77% of Indian people are having access to wireless broadband with their handsets.

In 2019, Samsung had the largest installed base with 34% while Xiaomi occupied the second position with 20%. Vivo and Oppo accounted for 11% and 9%, respectively. techARC’s Chief Analyst and Founder Faisal Kawoosa stated that over the last couple of years, Indians have been moving slowly from feature phones to smartphones, and the expansion of the market has resumed.

While there are entry-level smartphones (Rs 5,000 or cheaper) for users to choose, they prefer to start with mid-range ones (between Rs 5,000 and Rs 10,000). In this price segment, OnePlus, Vivo, and Realme are the leading brands regarding the proportion of net addition to last year’s user base. Realme witnessed a 49% increase in its user base while the figure for Vivo was 44% as opposed to 44% of OnePlus.

Meanwhile, Samsung saw a rise of 9 percent in its user base, Xiaomi and Oppo registered 25% and 36% increase, respectively.

According to Kawoosa, the main factors that drive the smartphone user growth include the availability of affordable smartphones with good quality, the expansion of LTE/4G networks, as well as the expansion of offline and online channels.

But he noted that from this year on, the situation will be more challenging as the smartphone market is saturating regarding the addressable market. Now, phone brands should ramp up their services, which can help them generate revenue consistently from their current customers.

Right now, a user gives brands a monthly amount from Rs 35 to Rs 107, depending on the services offered. The findings say:

Another strategy for phone brands is selling accessories as well as other connected electronics products such as smart speakers and smart TVs. This year, Realme, Oppo, and Vivo will earn the most in terms of adding new users, as reported by techINSIGHT. The report added:

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