JIOPHONE DRAGS DOWN THE SMARTPHONE SALES

As per the latest report from the German research firm GfK, the Smart phone sales in quarter 4 of 2017 ( in comparison to previous year Q4) have declined by at least 3 percent in India. The research firm has stated one of the major reasons behind this fall is the sharp growth of 4G feature phones like JioPhone.

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The JioPhone was launched by Reliance Jio at an effective price of zero rupees with certain conditions imposed. Since then, the poor and middle class section have embraced this phone for enjoying cheaper 4G data offered by the same company. In the beginning, JioPhone was only available after successful pre-booking, but now it is available in various Jio retail outlets across the country for direct purchase.

It has also reported that this is the first ever year on year decline reported for the emerging Asia (which comprises of Asian countries like India, Bangladesh, Indonesia, Cambodia, Malaysia, Philippines, Thailand, Vietnam.

“Emerging Asia saw Smartphone sales of 58.6 million units in 4Q17, down one per cent year-on-year,” the market research firm said. This was dragged by a three per cent decline in India, where a proliferation of low-priced 4G feature phones likely cannibalized Smartphone sales,” it added. However, on an accrual basis, a total of 232.7 million smart phones were sold in 2017 in the Emerging Asia region, an increase of eight per cent compared to 2016.

The firm also reported optimistic growth forecast for the growth of Smartphone market. Yotaro Noguchi, product lead in GfK’s trends and forecasting division, concludes, “The outlook for 2018 is positive as GfK forecasts global Smartphone demand to rise by three percent compared to 2017, driven by Emerging Asia and Central and Eastern Europe. With saturation in developed markets, consumer retention will be a key focus for Smartphone makers, which, alongside increased commoditization, will encourage greater innovation and differentiation in order to spur sales.”