PROJECT REPORT

ON
GROWTH OF SMART PHONES & TABLETS

Submitted To: Submitted By:

Mrs. Shuchi Goel Ankita Punia
Department of Commerce B.com(hons.)final year
Roll No:-5597
University Roll No.:-
Reg. No.:-

VAISH MAHILA MAHAVIDYALYA, ROHTAK

Session:-2017-2018
 Acknowledgement
I hereby express deep gratitude to all those who helped me directly or
indirectly in completing this project report.
It is my duty and privilege to express my regards to Mrs. Shallu of
Vaish Mahila Mahavidyalya, Rohtak. Her able guidance and valuable
suggestions let me through the difficult period of the prepration of this
report.
I acknowledge the help and cooperation received from classmates.

Nishtha
B.com (Hons.)final year

Certificate
This is to certify that Simran Kochar of B.com(hons.)final
year of Vaish Mahila Mahavidyalya, Rohtak has successfully
completed her project report under my supervision. She has
sincerely and honestly completed this report.
This project report has been examined and approved by me.

Mrs. Shallu

Department of Commerce

GROWTH OF SMART PHONES & TABLETS

The mobile market is substantially penetrated globally with approximately 6 billion mobile
subscribers, or 87 percent of the world?s population. In the United States there are 325 million
mobile subscriptions, a 103 percent penetration rate.

The rapid adoption of smartphones continues, representing greater than 50 percent of mobile
handsets in the U.S. currently with further penetration gains anticipated. The smartphone is
effectively a powerful mobile computer and its adoption and evolving use, along with tablets and
e-readers, is resulting in new consumer behavior and expectations related to the consumption of
information and the purchase of goods and services.

At the same time, the rapid emergence and consumer adoption of Facebook and other social
networks is a sociological phenomenon unparalleled in human history.

Early in October the number of active users of the Facebook network surpassed 1 billion, one-
seventh of the world?s population, and nearly half of global Internet users.

Each day, Facebook processes 2.7 billion ?Likes,? 300 million photo uploads, 2.5 billion status
updates and check-ins, among other countless bits of data.

There are approximately 600 million people using Facebook on mobile phones and, as
smartphones further penetrate, Facebook expects even more mobile usage and greater
engagement. ?It?s just this massive opportunity,? said Facebook founder/CEO Mark Zuckerberg.
Consumer services, including Facebook, Pandora and YouTube, among many others, are racing
to monetize their very significant and rapidly growing mobile user base.

Mobile applications continue to proliferate and the mobile advertising market has finally taken
off as advertisers, brands, marketers and publishers rush to deliver relevant targeted messages to
mobile consumers based, in part, on location and type of device.

Similarly, retailers are adapting to shopping research on smartphones and tablets and in-store
mobile usage while mobilizing their Web sites to optimize the mobile consumer and commerce
experience.

As smartphones and tablets enter the global mainstream, an entire ecosystem of services and
technologies are emerging to capitalize on the trend. We are in the early innings of a mobile
revolution engendered by increasingly faster, more affordable mobile Internet access on a global
basis.

How the iPhone changed the mobile game

? The mobile revolution really started in 2007 with Apple ? s introduction of the iPhone. The
iPhone radically and irreversibly redefined mobile devices with relatively fast and simple Web
access, an innovative and intuitive touch screen, and the creation/promotion of mobile
applications and a mobile app marketplace.

Previously, wireless devices largely functioned as wireless telephones or wireless email devices.

With the iPhone, the world?s first consumer smartphone, mobile devices became mobile
computers that also serve as voice and text communication devices.

The iPhone, handsets powered by Google?s Android mobile operating system and other
smartphones have provided consumers around the globe the first affordable, personal computer,
driving one of the largest and fastest shifts in consumer behavior ever.
Equally importantly, while perhaps less well understood, is how Apple caused a fundamental
shift in the balance of power among wireless industry behemoths, similar to how it upended the
music industry earlier in the decade with the introduction of the iPod.

The iPhone enabled its users to directly surf the Internet through its mobile Safari browser
instead of using the mobile carrier?s own portal, providing device manufacturers direct customer
and revenue relationships.

By allowing Internet access and portal competition wireless carriers ceded control of their own
customers, engendering the dumb pipes descriptor in the process.

The success of the iPhone has resulted in less control by the wireless carriers, more innovation in
mobile operating systems by device manufacturers and developers and more affordable and
increasingly more powerful mobile computing products for consumers.

The iPhone also led directly to Apple?s design and introduction in April 2010 of the iPad, its
subsequent consumer electronic category creator and blockbuster.

Success of Android ?

The iPhone ushered in a new mobile era and growing unit sales continue to generate incredible
financial returns for Apple. It also generated an immediate competitive response from Google.

In 2008, Google launched Android as an alternative mobile operating system through a no-fee,
open-source licensing model, providing device manufacturers and mobile carriers significant
freedom and flexibility to design products while relying on manufacturers to build and promote
Android devices and the carriers and other retailers to sell them to consumers.

Google?s no-fee licensing model has resulted in rapid adoption in the smartphone market such
that Android is now the leading mobile operating system globally.

In fact, the Android OS accounted for 72 percent of all smartphone shipments in the third quarter
of 2012. Samsung is the leading Android smartphone manufacturer by a large margin,
accounting for 34 percent of global smartphone shipments in the third quarter of 2012.
While Android is now the dominant smartphone OS, the tablet market has proven more difficult
to penetrate.

In the third quarter of 2012, the Apple iPad maintains a 50 percent market share, followed by
Samsung at 18 percent and Amazon at 9 percent (both Samsung and Amazon use the Android
OS).

The recent introduction for the holiday selling season of the iPad Mini and a slew of new
Android-based tablets will make for interesting market share comparisons in January.

Apple is a manufacturer and retailer and generates revenue and a solid margin on the sale of each
and every Mac, iPod, iPhone, iMac and iPad.

Google generates no direct revenue through the adoption by manufacturers of the Android OS.

On the other hand, all these devices are optimized for Google applications generating an
enormous amount of consumer usage data that Google then monetizes through the sale of
advertising.

Google also generates revenue through third party and direct sales of Nexus smartphones and
tablets, although these Google devices are contract manufactured by third-parties.

Mobile subscriber stats ?

As noted earlier, at the close of 2011 there were approximately 6 billion mobile subscribers on a
global basis. This represents a penetration rate of approximately 87 percent based on a current
global population of 7 billion.

Developed countries represent 25 percent of these subscriptions with 122 percent penetration,
while developing countries represent 75 percent of the subscriptions and 78 percent penetration.

Global subscribers are forecasted to grow at 5.4 percent from 2012-2016 according to Portio
Research.

Smartphone and tablet subscriptions growing rapidly

? In a June 2012 report from Ericsson, at year-end 2012 there will be approximately 1 billion
smartphone subscribers and 250 million mobile PC and tablet subscribers globally.

These segments are projected to grow at 30 percent and 25 percent CAGR, respectively, through
2017 such that smartphone and mobile PC/tablet subscriptions (data-heavy devices) total 3.8
billion in 2017, 43 percent of mobile subscriptions.

The segment identified as HT smartphones refers to High-Traffic devices, which typically

generate 5-10 times more traffic than low-traffic devices. It is estimated that the HT share of
total smartphones reached 50 percent at the end of 2011, and will represent the vast majority in
2017.

The Ericsson report also tracks and forecasts mobile broadband subscriptions, which includes
those devices using a Wi-Fi network and a declining number of feature phones with a mobile
Web browser. This subscriber base is also anticipated to grow at a 30 percent CAGR through
2017 to 5.1 billion, a 57 percent penetration rate of total mobile subscriptions.

In the U.S. there are approximately 115 million smartphone and 74 million tablet users currently.

Smartphones now comprise in excess of 50 percent of the mobile handsets in the U.S., while
tablets have penetrated to approximately 31 percent of the U.S. Internet population ages 8-64 and
are found in approximately 25 percent of U.S. homes.

Substantial growth in both smartphone and tablet unit sales remains for the U.S. market,
although projected growth outside the U.S., particularly in the Asia-Pacific region, is even
greater.

Over the next five years mobile subscriptions will continue to grow modestly, while the
penetration of smartphones, HT smartphones and mobile broadband subscribers is forecast to
increase rapidly and substantially. Consider that slightly more than half of the world?s
population will have access to the Internet on their mobile device by 2017.

Mobile data overtakes voice ?

As smartphones have penetrated the consumer market global traffic on mobile networks has
changed dramatically since 2007.

Consistent with the shift in usage to Internet access and information/entertainment consumption,
voice traffic has grown modestly, while data traffic has exploded with rapid growth commencing
in the second half of 2008. Mobile data traffic now exceeds mobile voice traffic by a four times
multiple.

Mobile traffic reflects individual usage, which derives, in part, from the screen size of the mobile
device.

Generally, the larger the screen the more time spent watching video, one of the most traffic
consumptive activities.

By the end of 2011, an average mobile PC/tablet generated approximately four times the mobile
data traffic produced by an HT smartphone, which, in turn, generated two times the traffic of an
average smartphone.

Mobile data traffic is expected to continue to grow rapidly, increasing at a 60 percent CAGR
from 2011 to 2017, while voice traffic remains stable.

Forecasted data traffic in 2017 will be 15 times greater overall compared to 2011, reflecting both
subscription and usage growth, particularly of mobile video, a significant bandwidth hog.

On average, a mobile PC generates approximately four times more traffic than a HT smartphone.

By the end of 2011, an average mobile PC generated approximately 2 GB per month versus 500
MB per month produced by HT smartphones.

An average smartphone generates approximately one-half the volume of an HT smartphone. By

the end of 2017, it is estimated that a mobile PC/tablet will generate 8 GB of traffic per month,
and a smartphone just above 1 GB, such that mobile PCs/tablets generate slightly more than one-
half of mobile data traffic in 2017.
In 2017, approximately one-third of the installed base of mobile PCs is estimated to have a
broadband subscription, with the remaining using Wi-Fi or Ethernet to connect or assumed not to
connect.

At the same time, approximately one-half of tablets are expected to have a built-in broadband
modem, though not all will have an active subscription. It is estimated that currently only 13
percent of tablet users worldwide have a data subscription, choosing to connect via Wi-Fi rather
than the cellular mobile networks.

Entertainment and mobile video rules ?

There are a number of ways to express consumer behavior on mobile devices. One way is to
analyze the type of traffic generated by mobile devices.

From this perspective and measuring traffic during peak period, real-time entertainment is the
dominant traffic category on the mobile network, accounting for 49.9 percent of all bytes sent
and received, followed by Web browsing at 16 percent and social networking at 10.5 percent.

Social networking apps typically generate far less traffic than real-time entertainment apps that
stream audio and video, underscoring further their popularity and usage.

YouTube has become the dominant app on mobile networks (Netflix dominates on fixed
networks) with a 28 percent aggregate traffic share, Facebook is ranked fourth with an 8 percent
share and Pandora is now ranked sixth in upstream-downstream traffic usage. Facebook accounts
for 15.4 percent of the upstream traffic on the mobile network, the largest single share.

From a traffic perspective, Cisco estimates that mobile video will grow at a 90 percent CAGR
between 2011 and 2016, the highest growth rate of any mobile app category forecasted,
generating over 70 percent of mobile data traffic by 2016. The mobile Web is forecast to
generate 20 percent of mobile data traffic in 2017, the second largest category after mobile
video.
Cloud apps globally will account for 71 percent of total mobile data traffic in 2016, compared to
45 percent at the end of 2011. Mobile cloud traffic is projected to grow 28-fold from 2011 to
2016, a compound annual growth rate of 95 percent.

How we spend our time ?

Mobile traffic is one means of identifying consumer mobile behavior, but since different apps
generate greater/lesser amounts of traffic it is also important to understand how much time we
spend on each app.

According to eMarketer, time spent on mobile devices has increased from 22 minutes per day in
2009 to an estimated 82 minutes a day in 2012, a nearly four times increase.

In October 2011, McKinsey & Co. published minute-by-minute mobile device usage based on
findings from its iConsumer survey.

Out of a total of 119 minutes of reported daily use in the U.S., 32 percent of time was spent on
entertainment, nearly one-third of that playing games, while another 32 percent of time was spent
talking or instant messaging.

Further, we spend 10 percent of our time on social networks and a nearly equal amount, 8.4
percent, either browsing/searching on the Internet or shopping/researching and searching locally.

Across most retail categories, mobile accounts for about a third of online consumer research and
44 percent of the time this research is done inside the physical store ? to check out the
competition, to compare prices, or to use mobile-specific tools such as bar code scanners.

Usage does differ modestly from one country to the next and varies considerably by
demographic.

Demographics matter ?

American youths, ages 13-34, have digital lives distinct from older U.S. consumers.
According to another McKinsey report using the same iConsumer survey data, this age group
prefers smartphones or tablets and eschews PCs and many laptops. Landline telephones are
considered almost a curiosity as are CDs and most hard-copy media such as newspapers,
magazines and books.

Compared to consumers ages 35-64, the younger age group is 1.5 times to two times more likely
to own a smartphone, tablet, Internet-enabled gaming console or Internet video box.

Similarly, the 13-34 age grouping is more than 1.5 times more likely to go online to
communicate through social networks and VoIP/video chat or to access entertainment online or
on-demand.

Further, compared to the 35-64 age group, this cohort uses their mobile devices 3x longer each
day and, as a proportion of aggregate time spent, spends twice as long engaged with applications
on mobile versus on the PC.

This tech-savvy cohort is entering its prime spending years and the cultural and consumptive
behavior of this younger generation has important implications for emerging and established
information, lifestyle and technology brands, in particular.

Tablets are not as mobile as smartphones ?

According to the Online Publishers Association, tablet owners are slightly older, more female
and wealthier compared to smartphone owners.

The average age of a tablet owner is 34, compared to 30 for smartphones, while smartphone
owners skew more male at 56 percent male ownership compared to 51 percent male ownership
of tablets. Tablets are more of a shared device and less ?personal? than smartphones while the
larger screen enables more multimedia consumption.

According to Nielsen data, 70 percent of consumers? time spent with tablets occurs at home.
Tablets are used an average of 13.9 hours per week and more frequently at night, particularly
during the 7 p.m. to 10 p.m. prime-time television viewing hours.
Forrester Research has recently reported that 85 percent of U.S. tablet owners use their devices
while in front of the television, while 57 percent of smartphone and tablet owners checked email,
44 percent visited a social network and 19 percent searched for product information while
watching TV.

Tablet usage behavior goes beyond interaction with the TV. Research indicates that 30 percent of
tablet users actually spend more time reading news compared to before purchasing the tablet.

While free streaming makes up the majority of content consumed across all platforms, TV has
the highest share of paid content (35 percent), followed by the tablet (29 percent), smartphones
(19 percent) and PCs (17 percent).

Consumers spend more time using tablets for more immersive activities with games, social
networking and entertainment categories accounting for 86 percent of consumption.

Smartphones claim a higher proportion of communication and task-oriented activities with social
networking (24 percent), utilities (17 percent), health and fitness (3 percent) and lifestyle (3
percent) commanding nearly half of all usage on smartphones.

Social networking is altering the way users communicate. Games are the most popular category
on both form factors with 67 percent of time spent using games on tablets and 39 percent of time
spent using games on smartphones.

More broadly, social networking is altering the way users communicate.

According to McKinsey, since 2008 social networking has almost doubled its share of consumer
communications time, from 15 percent to 29 percent, mostly at the expense of the phone.

This change in behavior is even more pronounced when generational differences are considered
as consumers under the age of 25 spend nearly 40 percent of their communications time on social
networks, double the rate of those over age 45.

Wrap-up and looking ahead ?

The rapid proliferation of smartphones and tablets is profoundly changing the way that we
behave, consume content and conduct commerce.

The ubiquity of wireless connectivity combined with increasing functionality and speed of
connected devices and mobile networks will further drive consumer demand for media, content
and advertising while monetization models continue to evolve.

The smartphone and tablet are going mainstream. We have watched mobile usage and uses grow
dramatically since the introduction of the iPhone in 2007, the Android OS in 2008 and the iPad
in 2010.

The research of Cisco, Ericsson, Sandvine and others provides reasonable visibility regarding
continued growth and adoption of smartphones and tablets, their population and household
penetration five years from now and growth in data consumption. We know that time spent on
these devices has increased substantially and that mobile consumption of video and social
networks will continue to expand.

The McKinsey study on the digital consumption behavior of the 13-34 age grouping provides
insights as to consumer behavior in the future.

We know that consumer behavior on a smartphone is different than on a tablet. We know that
tablets are increasingly becoming available in different sizes, potentially representing additional
distinct consumer use cases.

It is also apparent that mobile consumers are becoming active mobile shoppers. As smartphones
and tablets go mainstream and consumers spend more time engaging on their devices, publishers
continue to explore various monetization models, while advertisers, brands, and marketers shift
increasing advertising budgets and spend, both response and brand, through the mobile medium.

Media, entertainment and information companies are investing to mobilize their Web sites and in
new services and technologies to capitalize on resulting fundamental shifts in consumer
behavior.
Established and emerging mobile advertising technology companies are also developing and
providing solutions to enable marketers and advertisers to reach cost-effectively this vast mobile
audience on a targeted basis at scale.

The mobile market is complex, fragmented and both growing and evolving rapidly. We are in the
early innings of a mobile revolution engendered by more affordable mobile computing and
Internet access on a global basis.
 INDIAN CONSUMER MARKET

INTRODUCTION

Indian consumer segment is broadly segregated into urban and rural markets, and is attracting
marketers from across the world. The sector comprises of a huge middle class, relatively large
affluent class and a small economically disadvantaged class, with spending anticipated to more
than double by 2025.

India hit ten-year high and stood first among the 63 nations surveyed in the global consumer
confidence index with a score of 136 points for the quarter ending December 2016.
Global corporations view India as one of the key markets from where future growth is likely to
emerge. The growth in Indias consumer market would be primarily driven by a favourable
population composition and increasing disposable incomes.

Indias robust economic growth and rising household incomes are expected to increase consumer
spending to US$ 4 trillion by 2025#. The maximum consumer spending is likely to occur in
food, housing, consumer durables, and transport and communication sectors.
 MARKET SIZE

The growing purchasing power and rising influence of the social media have enabled Indian
consumers to splurge on good things.

By 2020, the electronics market in India is expected to increase to US$ 100 billion from US$ 28
billion in FY17. The production is expected to reach to US$ 104 billion by 2020. By 2018, the
television industry in India is expected to grow to US$ 11.78 billion from US$ 9.23 billion in
2016, registering a growth of 12.97 per cent.

Smartphone shipments rose 15 per cent year-on-year to 29 million between January-March 2017.
India's tablet PC shipments increased 2.9 per cent to 722,000 between April-June 2017 over the
previous quarter,
 INVESTMENTS

According to the data released by the Department of Industrial Policy and Promotion (DIPP), the
electronics sector attracted foreign direct investment (FDI) worth US$ 1.78 billion between April
2000 and June 2017.

Following are some major investments and developments in the Indian consumer market sector.

Japan-based imaging major, Nikon, expects India to be one of its top five markets in the
world over the coming 3-4 years as it retains its lead in the DSLR segment and expands
its retail presence in India by adding 10-15 Nikon Experience Zone stores.
South Korean electronics major, LG, is planning to make India as its export hub, on the
back of improved ties between South Korea and India, as per Mr Ki Wan Kim, Managing
Director, LG Electronics India (LGEI).
Amazon India has set up seven new warehouses in India, which will be used exclusively
for large appliances and furniture, with an aim to boost the sales of its high-priced
products such as televisions, refrigerators and furniture.
Dyson, the UK-based manufacturer of innovative vacuum cleaners and air purifiers, plans
to enter Indian consumer market by 2017 and invest GBP 154 million (US$ 190 million)
over the next five years in areas of retail infrastructure, marketing, promotion and taxes to
the government.
AO Smith, a US based water technology and air purification solutions company, sees
India as one of key markets and plans to grow at double-digit growth rate, having
invested US$ 75 million so far.
 GOVERNMENT INITIATIVES

In the Union Budget 2017-18, the Government of India increased the allocation for
incentive schemes like the Modified Special Incentive Package Scheme (M-SIPS) and the
Electronic Development Fund (EDF) to Rs 745 crore (US$ 111 million) for providing a
boost to the semiconductor as well as the electronics manufacturing industry.
In the Union Budget 2017, the government has proposed to spend more on the rural side
with an aim to double the farmers income in five years; as well as the cut in income tax
rate targeting mainly the small tax payers, focus on affordable housing and infrastructure
development will provide multiple growth drivers for the consumer market industry.
The Union Cabinet has approved incentives up to Rs 10,000 crore (US$ 1.47 billion) for
investors by amending the M-SIPS scheme, in order to further incentivise investments in
electronics sector, create employment opportunities and reduce dependence on imports
by 2020.
The Ministry of Electronics and Information Technology plans to revise its policy
framework, which would involve the government taking a more active role in developing
the sector by providing initial capital, with the aim to attract more private players and
make India a global semiconductor hub.
The Government of India has allowed 100 per cent Foreign Direct Investment (FDI)
under the automatic route in Electronics Systems Design & Manufacturing sector. FDI
into single brand retail has been increased from 51 per cent to 100 per cent; the
government is planning to hike FDI limit in multi-brand retail to 51 per cent
 ROAD AHEAD

By 2025, India would rise from the 12th to the 5th largest position in the consumer durables
market in the world. The consumer durables market in India is expected to reach US$ 20.6
billion by 2020. Demand growth is likely to accelerate with rising disposable incomes and easy
access to credit. Increasing electrification of rural areas and wide usability of online sales would
also aid growth in demand.

Exchange Rate Used:

INR 1 = US$ 0.015 as of October 6, 2017

INR 1 = GBP 0.012 as on February 9, 2017

References: Media reports, press releases, Press Information Bureau (PIB), Union Budget 2017-
18, Boston Consulting Group, International Data Corporation.

In 2015, revenue from consumer durables sector in India stood at US$ 9.7 billion, which
further increased to US$ 12.5 billion in FY16.
Consumer durable market expected to grow at CAGR of 13 per cent from FY05 to FY20.
Around two third of the total revenue is generated from urban population and rest is
generated from rural population.
Godrej group, Onida Electronics, Blue Star and Videocon Industries are few of the major
domestic players operating in India consumer durable market
Statistics on consumer mobile usage and adoption to inform
your mobile marketing strategy mobile site design and app
development

"Mobile to overtake fixed Internet access by 2014" was the huge headline summarising the bold
prediction from 2008 by Mary Meeker, an analyst at Kleiner Perkins Caufield Byers who
reviews technology trends annually in May.

The mobile statistics that the team at Smart Insights curate in the regular updates to this article
are grouped under these headings for key questions marketers need to answer about mobile to
help them compete:

Q1. Time spent using mobile media

Q2. Percentage of consumers using mobile devices
Q3. How many website visits are on mobile vs desktop devices?
Q4. Mobile conversion rates vs desktop and visit share for Ecommerce sites?
Q5. Mobile app vs mobile site usage?
Q6. How important are mobile ads
Q7. What percentage of Google Searches are on mobile?

The United States and United Kingdom are the main countries covered for which there are many
reports. At the end of the article we also cover the main European markets featured in a recent
Nielsen online media report, i.e. France, Germany and Italy (Spain not covered)

Well, we're now past the mobile Tipping Point shown in the chart below as this 2017 mobile
usage report from comScore shows, based on percent of mobile minutes spent online.

So it's no longer a case of asking whether mobile marketing important, we know it is! It's now a
question of using the statistics to understand how consumers behave when using different types
of mobile devices, often alongside larger format devices and what their preferences are.
To help you keep up-to-date with the rise in consumer and company adoption of mobile and its
impact on mobile marketing, I will keep this post updated throughout 2016 as the new stats come
through to support our 120 page Expert members Ebook explaining how to create a mobile
marketing strategy. We also have this free briefing for Basic members explaining how to create
an overall digital marketing strategy - which many businesses today still lack.

Our Digital Marketing Strategy briefing explains how to create an integrated digital marketing
strategy using the Smart Insights RACE planning framework.

Download our Free Digital Strategy Guide.

So that's the intro showing the importance of mobile, let's dig into the details to prove it.

Q1. How much time do consumers spend using mobile media?

Mobile media use varies through the day. This is important to understand for dayparting, i.e.
buying AdWords and display media. This daypart media use from comScore Global Digital
Future in Focus shows how desktop is still important for daytime at work audiences, but Tablet
and smartphone dominate in the evening.

The latest figures, also from comScore Mobile Metrix presented in the OfCom Communications
Market report show the total browse time per month is much higher on smartphones - these
figures compare to 34 hours and 29 hourse for the United States and United Kingdom on
desktop.

Mary Meeker's annual spring updates on mobile are a must-read if you follow consumer
adoption of technology platforms, so we have used some of the key findings from the
latest KPCB mobile technology trends by Mary Meeker. Her deck is nearly 200 slides, so we
have selected the statistics which best summarise the importance of mobile devices today.
The latest data shows that we are now well past the tipping point mentioned at the top of this
post. Mobile digital media time in the US is now significantly higher at 51% compared to
desktop (42%).

The implications are clear - if you're not able to reach your audience through mobile search or
display, or you're not providing a satisfactory mobile experience you will miss out compared to
competitors who are. Mobile only

Mobile-only social Networks like Snapchat are also growing rapidly in popularity, and this is
driving increases in time spent on mobile devices. For more information, see our article on
Snapchat Marketing Statistics.

Q2. Percentage of consumers using mobile devices?

This Ofcom international benchmark shows the global popularity of using different digital
devices in representative countries.

This interesting visual from comScore also part of their digital future in focus shows the picture
that marketers need to build up. This panel data shows that the majority of consumers are
multiplatform and will often be multi-screening, accessing sites on mobile or desktop, so
consistent experiences across device need to be deployed.

Here's another visualisation from a more recent 2017 comScore report on Mobiles Hierarchy of
Needs . Here you can see that in most countries multiplatform ownership dominates, so we
switch between mobile and desktop, particularly when selecting products and services.

We recommend you understand this multichannel switching behaviour for your own brand. As
Rob Thurner explained in his post on KPIs to review m-commerce effectiveness, it's important to
keep track of the split between users of mobile and desktop devices visiting your site(s). Using
segments in Google Analytics is the best way to do this.

Q3. How many website visits are on mobile vs desktop devices?

However, we need to be careful with interpreting data on hours spent, since we spend most of
our time on smartphones checking email and using social media. This has led to the common
mantra of 'Mobile-First' design which I think is dangerous, or at least oversimplistic! Eric
Schmidt, then Chairman of Google talked about a Mobile-First approach. The reality is that
while smartphone use is overwhelmingly popular for some activities such as social media,
messaging and catching up with news and gossip, the majority of consumers in western markets
also have desktop (and tablet) devices which they tend to use for more detailed review and
purchasing. So we need to think about strategies to engage what comScore call the
Multichannel Majority not simply 'mobile first' or 'smartphone adoption'. This explains why
mobile conversion rates are much lower in retail and why the breakdown between traffic for
retail sites is broadly equal between smartphone and desktop. Audience measurement platform
comScore has talked for some time about strategies to engage and measure the multiplatform
majority across devices and I think there will, or should be more focus on that in the years ahead.

This UK data also shows the importance of the multichannel majority in sectors like Retail and
to a lesser extent banking, but that for some niches like weather 'mobile first' is more accurate.

Their latest data for the US is striking in shows how the multi-device majority dominate,
particularly amongst millenials.

Although mobile is growing in importance, this older data from Adobe's latest Digital Index (not
updated yet) shows that in all industries the majority of visits are still on desktop.

So with so many site visits still on desktop, it's important when designing using a responsive web
design that the desktop experience isn't degraded and this has led to many larger businesses using
an adaptive web design where layout and content are tailored for desktop, tablet and smartphone
screen dimensions.

Q4. Mobile device conversion rates and visit share for Ecommerce sites?

We have a separate compilation of Ecommerce conversion stats if you're creating a business case
for mobile optimised sites as explained in our mobile marketing strategy guide, this data is also
valuable since it shows the variation in conversion rate by mobile type. This is the latest data
from Monetate for their retail clients showing conversion rates.

Their latest quarterly update from November 2016 shows conversion rates to add-to-basket or
cart and below sale across the last 4 quarters, up to the Q3 2016:

The data clearly shows that Smartphone conversion rates are much lower than for desktop -
important if you're making the business case for a mobile responsive site.

This source is useful since it's a regular survey showing the growth in use of mobile site visitors.
enables you to drill down to see usage by device type, for example iPad is still the dominant
tablet, but Kindle Fire and Android tablets now account for over 10% of tablets. You can see that
tablet and smartphone use nearly doubled in the year based on 500 million plus visits for these
retail clients (see link above for methodology).

Q5. Mobile media time - app vs mobile site usage? App usage (90% of time) dominates
browsers in mobile usage

Consumer preference for mobile apps vs mobile sites should also be thought through as part of
mobile strategy.
 Indian Scenario

Why India Will Be the World's Second Biggest Smartphone Market

When it comes to the computing products I study TVs, smartphones, tablets and PCs I tend
to talk primarily about whats happening in China and the West. Thats mostly because China
and the U.S. are the largest markets by population for consumer tech.

And while theres a great deal of competition in these two markets, theyre quickly becoming
replacement-focused that is, most consumers arent buying entirely new products, but
replacing older models. Thats sending growth rates for things like smartphones, tablets, and
even PCs plummeting.

India, however, is a completely different story.

India will be the worlds second largest smartphone market. With a population of just over 1.2
billion, India has nearly as many people as China. Yet, unlike China, Indias smartphone
penetration is still extremely low. More than 900 million Indians have a mobile subscription, but
only about 110-120 million have a smartphone, according to most estimates.

Amazing Sale - All Prices were Reduced by 10%

What does that mean? India represents the next big growth opportunity for smartphone makers
yet it will also come with many challenges for global players looking to compete in the
region.

As Ive studied China, the U.S., and India, it became clear each of these populous regions are
very different when it comes to consumer tech. Each countrys unique culture plays a role in how
local consumers view, purchase and use technology. This explains why local hardware
companies are gaining an edge over foreign ones.
As I pointed out in this analysis of regional smartphone market trends, India is still anyones
game from a hardware standpoint:

This model predicts that Micromax, an Indian brand, is poised to overtake Samsung as the
number one smartphone vendor by quarter within the next six months.

Watching local brands rise to power in China and now in India is truly fascinating. While China
is a relatively price-sensitive region, India may be even more so. Thats not entirely due to
economics, but largely because Indian consumers have what is called a value for the money
mentality. They tend not to pay more for something when a lower-priced product gives them
more value for their cash.

A customer tries out an Apple Inc. iPhone 5C at a Reliance Digital store, a subsidiary of
Reliance Industries Ltd., in New Delhi, India, on Saturday, Nov. 2, 2013.
BloombergBloomberg via Getty Images
By Ben Bajarin
December 2, 2014

When it comes to the computing products I study TVs, smartphones, tablets and PCs I tend
to talk primarily about whats happening in China and the West. Thats mostly because China
and the U.S. are the largest markets by population for consumer tech.

And while theres a great deal of competition in these two markets, theyre quickly becoming
replacement-focused that is, most consumers arent buying entirely new products, but
replacing older models. Thats sending growth rates for things like smartphones, tablets, and
even PCs plummeting.

India, however, is a completely different story.

India will be the worlds second largest smartphone market. With a population of just over 1.2
billion, India has nearly as many people as China. Yet, unlike China, Indias smartphone
penetration is still extremely low. More than 900 million Indians have a mobile subscription, but
only about 110-120 million have a smartphone, according to most estimates.

What does that mean? India represents the next big growth opportunity for smartphone makers
yet it will also come with many challenges for global players looking to compete in the
region.

As Ive studied China, the U.S., and India, it became clear each of these populous regions are
very different when it comes to consumer tech. Each countrys unique culture plays a role in how
local consumers view, purchase and use technology. This explains why local hardware
companies are gaining an edge over foreign ones.

As I pointed out in this analysis of regional smartphone market trends, India is still anyones
game from a hardware standpoint:

This model predicts that Micromax, an Indian brand, is poised to overtake Samsung as the
number one smartphone vendor by quarter within the next six months.

Watching local brands rise to power in China and now in India is truly fascinating. While China
is a relatively price-sensitive region, India may be even more so. Thats not entirely due to
economics, but largely because Indian consumers have what is called a value for the money
mentality. They tend not to pay more for something when a lower-priced product gives them
more value for their cash.

But Indian consumers, like many consumers, dont want cheap products their focus is on finding good
specs at a good price. This will be a key metric as smartphone vendors look to convert Indias large
feature phone userbase to smartphones. Android One, Googles developing-world focused smartphone
software, will play a role in driving feature phone to smartphone conversion. Google is aggressively
looking to gain a foothold in India, and Android One serves a key role in that strategy. Currently, Android
One has a number of hardware restrictions in order to keep the price down. I believe this will change
over time as Google continues to keep Android One hardware both price- and spec-competitive.
Still, it will be tremendously difficult for any company to make money on hardware in India.
Instead, companies will have to look to monetize services more than hardware. This is why
Google could be well positioned to compete, but also perhaps Chinas Xiaomi. Given the green
field that is India, Xiaomis services model, which is many ways competes directly with Google,
has as good of a chance as any to gain a foothold.

Apple, meanwhile, will find its current India model challenged. There are likely less than 10
million iPhones in use in India, based on my estimate model. Older generation iPhones seem to
be perceived as higher value for the money than current generation iPhones, and accordingly
appear to move in more volume than current generation iPhones. While Apple may not find great
success with current generation products in India, it seems their older products could be an angle
to grow in the region.

Outside of Xiaomi and Apple, Motorola is the other foreign brand that Im keeping an eye on.
Motorola has been catering strongly to the value for the money mentality and seeing steady
growth in sales from India.

Ultimately, this is exciting for both the country and the technology industry. As we saw with
China, as smartphones have gained in popularity, a tech boom has emerged. Well soon see even
more interesting innovations, particularly in software and services, come from India.
Samsungs Tablet Market is Growing in India: Leads in 4G Tablet
Segment

The tablet market in India has become very uncertain due to the increasing popularity of
phablets. According to the recent report by IDC, tablet shipment in India grew 7.8% QoQ in
the third quarter of 2016. A total of 1.06 million units of tablets (including slates and
detachable) were shipped in India in Q3 2016, compared to 0.98 million units in Q2 2016.

Even though Samsung is losing its smartphone market share and profits, the company posted the
highest QoQ growth, 26.2%, in terms of tablet market share. Apparently, the growth is credited
to the Galaxy J max tablet which was launched in July this year. Other than Samsung, it was only
Lenovo that posted QoQ and YoY growth out of the top five vendors in India.

The low-cost device manufacturer Datawind retained the top position with 26.1% share in
Q3 2016, registering 73% YoY growth. The numbers arent surprising since most of the
Datawind tablets are tagged around Rs. 5k and are popular under the brand name of Akash in
India. The Canadian company is known for manufacturing low-cost devices for developing
markets.

Samsung retained the second position, followed by iBall with 13.6% share, Lenovo with 12%
and Micromax with 10.1% share of total tablet devices shipments in Q3 2016. iBall shipment
went up by 2.9% and has emerged as the leading Indian vendor of 4G tablets, but
its Samsung that dominates the list of top 4G tablet vendors in India, all thanks to the Galaxy J
max tablet.

The biggest surprise came in the form of Apple which failed to find a spot in the list of top five
vendors despite being the leader of the global tablet market with 21.5% share in Q3 2016.
Samsung Tablets Meeting Market Needs

Indian market is highly price sensitive, and 4G/LTE is a major driving force of tablet/smartphone
industry in India. With J max, Samsung has fulfilled both of the major market needs. The
increasing penetration of mobile internet in India has made Tablets popular in the non-tech
commercial field, like Education, Government and large Enterprise segments. While the
commercial segment showed continuous growth at a healthy pace, accounting 20% of tablet
shipments in Q3 2016, the shipment of 4G tablet shot up by 55%, accounting one-fourth of the
total tablets sold.

Matching with the industry trends, Samsung tablets are performing efficiently in the Indian
market.
 What is the Future of Tablet Market?

The growing adoption of phablets is the major reason which is killing the tablet market in India.
Phablets are a larger version of smartphones sporting 5-inches or larger screens. Phablets are
more convenient in terms of portability and usage due to which non-tech consumers prefer them
over tablets. The number of tablet users in India is estimated to reach 47.1 million in 2016. 90%
of smartphones that were launched in India in the last 12 months were sporting 5-inch or bigger
screen size display.

Samsung posting 26.2% growth over the previous quarter amidst such a challenging market is a
commendable achievement, especially after the recent Note 7 debacle which affected the interest
of the stakeholders and even companys profit share. It is Samsungs strong distribution chain
and market strategies which helped the company to tackle these challenges. However, it was the
festive season due to which Samsung and the entire tablet market performed positively.

The future of the tablet market looks very uncertain as, besides Phablet devices, Ultrabooks and
Chromebooks have also started eating into the tablet market. For Samsung, its going to a
challenging task to keep strengthening its presence and market share. It would be interesting to
see what strategy will the company be employing in India when the global tablet market is
showing no signs of recovery.
 Indian Online Smartphone Market : An analysis (Conclusion)

The journey of Indian online smartphone market has been very interesting due to following
points:

It surged very fast - Except China, no other Asian country has this much lion share of
Online sales.
It has unique model - 'Cash on delivery' has been an unique part of Indian e-commerce
market. Easy return policy also soothed the customer anxiety.
It did the unexpected - Where else do you find new brands launching itself on online
portals!

Market Size

Lets try to calculate the market size.

Total size of Mobile phone market in India : 25 to 30 million of local assembly/direct import
each month. (Dec-2015 data)

Total share of Smartphone : 40% (since September-2015).

Current share of Smartphone online sales market : 29.5% of the total Smart phone sales. (Jan-
2016 data)

Size of online Smartphone market in India: 25 Million x 40% x 29% = 2.9 million per month.
Impressive numbers !!

Market Growth Rate

Online Smart phone market share growth chart:

Online Smartphone brands

Here are list of online only selling smartphone brands in India:

Motorola, Lenovo, One Plus, Xiaomi, Letv, Yu, Asus, Infocus, Coolpad, Huawei Honor, ZTE
Nubia, Phicomm, Alcatel, Meizu, Xolo, Obi.

(Note : Almost all successful Chinese smartphone brands entered India through online only
route.)

Online Business Model advantages

Multiple layer channel margin saved and same cost advantage of 15-20% can be passed
on to customer.
Different states (in India) has different VAT rate. Typically, to keep price same across
India, company has to bear some Tax part. This Tax part is saved in online channel.
Direct sales to customer means no more inventory stuck in the channel.
Time to market and width of channel are achieved immediately.
 Conclusion

In conclusion, we can list following points about success or failure in Indian online smartphone
market :

Critical reason for Success in Online

Highly Aggressive Price

Strong Product Differentiator
Strong PR & Marketing

Critical reason for Failure in Online

Lack any killer differentiator in the Product

Wrong online partner selection
Me too phone or Brand