Two powerful research agencies have published their reports pertaining to Internet usage in India, and there is both good news and bad news: 300 million gadgets which can access Internet will be sold in India during 2015, but sadly only 44% of Indians can afford to buy one as of today.
300 Million Internet Enabled Devices To Be Shipped In 2015
Gartner has released a report based on their findings for Internet enabled devices in India, and the news is certainly encouraging. As per the data, total of 300 million gadgets which include PCs, Tablets, Ultra mobiles and Smartphones would be shipped across India in 2015.
Compared to 2014, it is an increase of 4.5%.
Here is the breakthrough for 2015:
- Traditional PC Market: Growth of 2%
- Laptop & Notebook Market: Growth of 9%
- Tablets: Decline of 3%
- Mobile Phones: Growth of 5%
| Device Type | 2014 | 2015 | 2016 | 2017 |
| Traditional PC (Desk based and Notebook) | 9,024 | 9,206 | 9,493 | 9,587 |
| Ultra mobile (Premium) | 631 | 829 | 1,102 | 1,428 |
| PC Market | 9,655 | 10,035 | 10,595 | 11,015 |
| Other Ultra mobile (Tablets and Clamshells) | 6,683 | 5,773 | 5,854 | 5,945 |
| Computing Devices Market | 16,338 | 15,807 | 16,449 | 16,960 |
| Mobile Phones | 275482 | 289146 | 309537 | 324,251 |
| Total Devices Market | 291,820 | 304,954 | 325,986 | 341,210 |
In this research, they have included a new category called Ultra mobile which includes devices such as Microsoft’s Windows 8 Intel x86 products and Apple’s MacBook Air. For Ultra mobile (Tablets category), devices which have been included are: iPad, iPad Mini, Samsung Galaxy Tab S 10.5, Nexus 7 and Acer Iconia Tab 8, HP Pavilion 11, Lenovo Yoga 2 11 and Dell Inspiron 13.
This explosion in the shipment of Internet enabled devices is definitely a good news for the Indian economy, business and consumers, along with telecom players and ISPs.
But the question which arises is: How many Indians can afford Internet?
44% of Indians Cant Afford an Internet Connectivity
Boston Consultancy Group (BCG) has also released a report, which projects a very optimistic future for the Digital industry in India, but alongside, it also states that majority of Indians simply can’t afford to buy such a device.
As per the report, the proportion of households which can afford Internet connectivity must have an annual income of $3300 or Rs 2,00,000+. And as per a 2013 report, only 56% of such households exist in India, which means that 44% of Indians can’t even afford Internet. The report states that by 2018, 67% would be able to afford one, as annual income is projected to rise along with the GDP of the nation.
The report specifically mentions that handset vendors and manufacturers should ensure that the devices they launch in the market are of low cost if they want rapid adaptation of Internet in rural India. Nearly 65% of all mobiles sold in India are Internet enabled (smartphone) but the least expensive ones are still above $60, which makes it tough for majority of Indians to purchase one.
The report says, “.. the availability of low-cost Internet-enabled devices will be key to increasing Internet penetration among the lower-income population”
Other challenges which India faces when it comes to expansion of Internet enabled mobiles and Internet connectivity in India are: Network availability and infrastructure, for which Govt. needs to collaborate with Telecom players to make the coverage and speed even better and Awareness. As per the report, 70% of non-users of Internet enabled mobiles phones in India are not even aware of the benefits which Internet can bring into their lives.
Some highlights from BCG report:
- Total number of Internet users will increase to 55 crore by 2018, up from 20 crore right now. This, in the next 3 years, 40% of the Indian population would be connected with the Internet
- By 2020, Internet will contribute 5% of the national GDP ( Rs 12 lakh crore)
- By 2018, 54% of all Internet users would be 25 years or older, which means that users will spend more compared to now when only 40% of users are 25 years or older
- By 2019, almost 50% of all Internet users will be residing in villages. As of now its 29%
- Although women control 44% of household spending in India, they only constitute 25% of Internet users. By 2018, it will increase to 30% and by 2025, more than 40% of Internet users would be women
- Regional content will result in 60% of all content consumption in India by 2018, which was 45% in 2013
You can access the report: “The Changing Connected Consumer in India” here.
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