Find out reasons behind the purchase of Android mobile phone in India
Why Android Manufacturers being late players too are ahead of iPhone or other smart phones.
What was so special about Android which made it more attractive to Indians
Why did they prefer it over iPhone or any other smart phones like Nokia
In order to accomplish the objectives of the study, sample survey results published by various agencies are referred which uses a number of consumers feedback as part of survey. Six important factors i.e. price, social group, product features, brand name, durability and after sales services were considered as major factors.
The purpose of this study is to better understand the current dynamics of the Indian market for smartphone and the usage behaviors of consumers. This study has looked into the familiarity of users towards smartphone, choices of smartphone brand and service providers, and most importantly the determinants which influence purchasing decision. Usage behaviors such as using smartphone for email, web browsing, gaming, and document reading were examined.
Probable Reasons to prefer Android mobile over others
Quite affordable and reasonable prices (e.g.$100 to $1000 for iPhone Vs wider range of varieties, styles, models and designs of Android mobiles at various prices)
Guarantee of after sales-service or replacement for Android (e.g. iPhone sellers don’t give you such guarantees)
Best accessories for Android Smartphones (e.g. Stingray Leather back, wireless speaker like Jawbone JAMBOX, Bose AE2i Audio Headphones etc.)
Rose in Q1 of 2014, driven by strong demand in emerging markets
Low-cost devices and development of 4G networks seemed major driver
Sales were 218.8 million units in 2013
Sales grew 28.6% to 281.5 million units in January-March 2014, accounted for over 60% of mobile phones sold
Total of 448.6 million mobile phones (feature and smartphones) sold in Q1, 3.9% high from 431.8 million units in Q1 of 2013
Smartphones accounted for 62.7% of mobile phone shipments, up from 50.7% in the year-ago period
Overall, Samsung-24.3% share (108.9 million units), Nokia-11.3% (50.5 million), Apple-9.7% (43.7 million)
The Smartphone Scenario in India:
Smartphone were treated as a gadget of luxury and sophistication sometimes back. Of late, it has become a broad based phenomenon in the Indian mobile phone market. The increasing numbers of smartphone users speak the same. With the presence of million and millions of users (and growing), marketers need to be cognizant about the potential of this.
Existing Nielsen/e-marketer/Other Survey Report's findings:
87% for online searches, 80% for social networking, 72% for chatting and using webmail, 59% for stream video and use their devices for maps and navigation
BFSI, Travel & Shopping accounts for 30% of usage
25% in urban India use for accessing Mobile TV Application
Major players are: Apple, Samsung, HTC, Blackberry, MicroMax, Sony and Nokia
In the era of the smartphone, 900 million users wish to get connected while they are on the go. The reasons for the same are multifold like 24x7 access to social networking sites, decreasing device and data costs, wide range of features. Android leads the pack of Indian Smartphone markets. Since 93% of smartphone users have only one handset, they want to make it their single source of infotainment.
Android’s domination of global smartphone shipments reached a new peak in Q3 2013, 4 out of 5 smartphones now running on Android
BlackBerry suffered a share dip from 4% to 1% in last year
Apple lost ground due to Android because of its very less presence at lower end of the smartphone market
Windows Phone continues to grow, though on small base
Microsoft shipped more than 10 million and doubled its global market share in last year
Microsoft grew smartphone shipments by 178% annually in Q3-2013
Overall growth was 45.5% more than 2012
Android’s market share reached to 81.3%, from 75% last year
Smartphone sales in India increased by 166.8% which makes it the world’s fastest growing smartphone market
India is considered as an Android country as this has 91% market share in the country, which gives an overwhelming lead over competitors.
In the absence of any other viable low-cost smartphone, Android has seen its popularity surge.
Android is also helped by the demise of Nokia Symbian mobile operating system.
To add, in 2010, Symbian had over 40% share in India's smartphone market.
Android is used by all major smartphone players in India like Micromax, Karbonn, Chinese players like Huawei and ZTE and MNCs like Samsung and Sony.
According to IDC, Android has 79.3% share in global smartphone market. Apple's iOS is second with 13.2% while Windows Phone is third with 3.7% share.
Worldwide mobile phones sales (Smartphone+ Feature phone) sales, increased to 1.81 billion from 1.75 billion.
Samsung is biggest mobile phone company internationally( 444.44 million devices sold)
Indian consumers metaphor and positivism for Android over Windows/Blackberry etc:
Number of options and brands available for any kind of budget in Android. Cost for an Android phone ranges between $53 (Micromax Smarty A25) and $750 (HTC Butterfly)
Average price would not exceed above $167 for good Android phone
Major advantage Android has is the huge number of free applications, play store has
Windows is still evolving and far behind in terms of number of free applications
Blackberry lacks applications
Most of the Blackberry do not have a touchscreen and cannot support gaming applications
Coming to Blackberry, if a user doesn’t make much of BBM then the phones sound unnecessarily costly
Blackberry for the QWERTY keypad
For Windows, very few varieties available and the average cost is drastically more (Approximately $333)
In Windows, only one option with less than $ 167 Nokia Lumia 510 (Around $ 158)
Conceptual framework of the study:
The research is conducted through the below hypotheses (on the consumers’ mobile phone buying decision) by various agencies like Nielsen:
Social factors have positive influence or not
Durability has a positive influence or not.
Price has a positive effect or the otherwise.
After sales services influence has any influence or not.
Mobile phones features influence consumers’ buying decision or not.
The main objective of research was:
Know about the experience of mobile users in India
Share findings with organizations to help them provide a better mobile experience to the consumers
Monitor periodically trends in mobile user behavior
Few salient observations:
Samsung found as most preferred brand(in 2013) followed by MicroMax, Sony, Nokia. This indicates Android is still No 1 in preferred smart phone amongst Indians
Mid-range / value-for-money $83-$250 segment is found most popular amongst consumers
Most preferred phones lies in the budget range (i.e.$ 83-$ 250) and again Micromax, Samsung tops the segment
Most preferred phones in the mid-range segment ($250-$417) are Samsung Galaxy Duo, Sony Xperia C, Micromax Canvas 4, Sony XPeria L, Nokia Lumia 720
In high-end segment, Sony XPeria Z is followed by Samsung Galaxy Note 2, Samsung Galaxy S3, Nokia Lumia 920, BlackBerry Z10
In Premium segment, Samsung and Apple rules the roost, Samsung being in No 1
The researches were done by various agencies like NielSen to aim at finding the tangible and intangible benefits that majorly influence the consumer’s buying decision when they choose a Smartphone in India. We found that, various factors have been found which triggers the consumer to choose any Smartphone. Researches provided range of variables that influence the purchase decision, combining them, few prominent factors can be derived. The Smartphone has revolutionized over a period of time. The influence of Smartphone in today’s society is phenomenal. Today’s Smartphone is no longer a mere device to make a phone call or send SMS. It is taking the role of the computer, which makes possible to do a lot with small hand held device. The usage of smartphone has increased to sharing information, paying products, browsing and shopping.
Smartphone can be treated as a device which enables a customer/user to make telephone calls. Also, at the same time it has many features that allow the user to perform several activities which was impossible in the past unless using a Personal Computer/laptop or a personal digital assistant (PDA), like sending and receiving e-mails, creating/editing an office document etc. Also, nowadays brand plays a very critical role in consumer buying decision. While consumers usually go for a familiar brand, but the concept of brand transcend has emerged beyond a trademark/name. Today brand is much more than a trademark. Based on the various sources of information; several dominant factors influencing a consumer purchase decision towards Smartphone are listed. They include product features, brand name, price, durability, after sales service and social influences.
This research information aims at naming the central factors which have a prevailing effect on the customers minds and heart while making purchase of a Smartphone. Many such researches have been carried out numerous times in abroad(out of India), especially in the developed countries. Needless to say, taking India into perspective, fewer inspection have been done. Mostly, the demographic variables have been given a priority. Smartphone market in India is in the development stage, where people have started to move from traditional feature phones to Smartphones. This study can provide a productive information to the marketers regarding the consumer perceptual experience towards the Smartphones.
5-inch screen Smartphones are most popular in India. The current marketplace is 25 million units and is constantly growing at 50% annually. Both price and performance leading to such preference.
70% of students in India use smartphone.
Mobile phones have emerged as fastest growing mediums for Internet usage(18.17%).
Around 62% bought movie tickets online, 47% purchased books, DVDs and music using their smartphone.
Facebook is the most popular social networking site with 83.38 percent saying they are registered it, while 91.54 percent said this was also their most preferred portal.
Samsung is expected to maintain its leadership position in 2014. The gap between the leader and challengers is like to shrink significantly in 2014 due to tough competition faced by various players.
Nokia is expected gain its momentum that was built in 2013 by first half of 2014.
E-Commerce Companies are going to play a Key Role in Smartphone Ecosystem like Flipkart¡¦s exclusive partnership with Motorola for selling Moto G, Snapdeal¡¦s with Intex for selling Aqua Octa. E-Commerce players will have a strong distribution channel for smartphones in India.
One of the leading E-Commerce is planning to launch their own brand of smartphones (through white labeling/ODM strategy).
Though mobile advertising is still in a nascent stage, in India, where smartphone penetration stands at 18%, many Digital Marketing companies have landed to see what works best for them. With increase in Mobile advertisements, it is an exciting opportunity for advertisers.
Smartphone, new electronic gadget is quickly becoming an necessary part of our life, especially for new generation users of mobile. The skillfulness of this device is leading in the exponential rise of market share. The study and analysis concluded that consumers in India are buying Smartphones based of its prices and availability across various segments of the markets. Brand is playing a vital role for Premium or High Cost segments in India. Also, brand, social image, durability, after sales services etc. are playing major role in buying decisions of consumers in India. The result of the study and analysis can bring more insight into the Marketing Strategy for Smartphone manufacturers, especially those who are targeting to garner in revenue from India or Indian sub-continent.
Prices are approximated using current foreign exchange rate, 1 $ = 60 INR(Indian Rupees)