India is the world’s second largest market for smartphone after China. About 134 million smartphones were sold across India in the year 2017. India ranks second in the average time spent on mobile web by smartphone users across Asia Pacific. The combination of very high sales volumes and the average smartphone consumer behavior has made India a very attractive market for foreign vendors.
The mobile phone market is constantly in a state of flux and has become highly competitive with major international players facing strong competition from the local players, thus creating difficulties for manufacturers to retain their market shares. Chinese vendors are further strengthening their positions in the smartphone category across India with the collective share of China-based vendors reaching 53 percent in 2017 from 34 percent a year ago. The volume of India's smartphone shipments is forecasted to increase to about 700 million in 2020, up from about eight million in the year 2010.
The market value of domestic manufactured smartphones in India was about 490 billion U.S. dollars in fiscal year 2016, this was a huge increase from about 175 billion U.S. dollars a year ago. This might have contributed to the reduction of the average selling price of smartphones in India. The average selling price decreased from about 254 U.S. dollars in 2011 to 132 U.S. dollars in 2015.
The outstanding development of the smartphone market in India is closely associated with the increasing popularity of mobile smartphone usage in the country. In terms of the smartphone operating systems market across India, Android held a share of about 82 percent as of December 2017, making it the leading operating system for users across India.