Lack of awareness, people using smart phones just for calling system, rural segment covering a major portion of India are some of the reasons for the low penetration.
According to recently published report of Bonafide Research "India Smartphone Market Overview", smartphones pricing below 13,000 INR covered 60% of the market in 2015 as most of the population of India belong to middle class or lower middle class. People buy smartphone just for the sake of buying in a country like India. But the actual use of smartphone is done by a very less percentage of people. The most important advantage of smartphones over featured phone is that the application of internet becomes very simple. But because of the low awareness of the people about the advantages of the internet to do the day to day chores is one of the major reasons for the lagging penetration.
A smartphone is a device that lets you make telephone calls, but also adds features that you might find on a personal digital assistant or a computer. A smartphone also offers the ability to send and receive e-mail and edit Office documents. Feature phones and multimedia phones are the different technologies along with smartphone in the mobile phone market. Smartphones are popular in particular age groups where age is between 16 - 24 or 25 – 34 as they find smartphone easy to use. Internet browsing is also a trend among the youths and for the elderly people to accept the changes and diverge into internet enabled smartphone is expected to take time in India.
People in India are price sensitive. So they always go for low cost smartphones that will provide every feature. The competition of the major players in the Indian market is very stiff and is based on the pricing strategy. Manufacturers are trying to fill every gap in the smartphone market in India and are luring the consumers by providing many features that will be useful to them. Internet enabled smartphones provides the facility to pay bills, book tickets, check mails and all other functions that needed a manual interaction. Despite having recorded a exceptional growth in the internet user base, India is still lagging in penetration. With 352 million internet users, India is still at 27% penetration while China and the USA have clocked 51% and 87% penetration, respectively. The low penetration of internet users in India is also responsible for the not-so-encouraging retail e-commerce sales in India. The advent of low-cost smartphones, coupled with low mobile tariffs, has empowered consumers in the hinterland to use data connectivity and we will be seeing more usage of internet from these areas in the months to come. Manufacturers are trying many applications that will attract the rural consumers as well so as to increase penetration. In June 2015, the local language content’s user base grew at a rate of 47% to 127 million users. According to IAMAI (Internet and Mobile Association of India), the use of local language content is the kernel aspect of the growth of internet usage in India. It is the element which is helping to gain more internet users from the rural areas of India.