Sie sind auf Seite 1von 13







India is the
fastest growing
smartphone market in Asia-pacific, making it a lucrative market for major players. Market is divers
The India smartphone market grew by a whopping 186% year-on-year in 1Q 2014. According to IDC
Asia Pacific Quarterly Mobile Phone Tracker (excluding Japan), vendors shipped a total of 17.59 million
smartphones in 1Q 2014 compared to 6.14 million units in the same period of 2013.
As more vendors continue to launch low priced smartphone models, the price gap between feature
phones and smartphones will be narrowed, driving rampant user migration in the price sensitive Indian
market. This rapid pace of growth in smartphones is expected to continue in India. While we notice that
much of the growth is coming from low-cost devices using the Android operating system, Windows is
making adequate gains too based on the strength of the entry level product mix in smartphones.
The rivalry amongst competitors in the market and presence of considerable key companies in different
segments makes the Indian market to be an ideal place to study consumer behavior and company
strategies. We have tried to study the consumer behavior by survey method. The Second part of the
report consists of research and analysis, collected through a survey done audience of 30 (time
constraints). The study was carried out at Indore at various outlets and educational institutes of the city.
The data collected have been well organized and presented.
The study revealed that, there is a large variation in the consumer perception towards smartphone.
Being a cost driven market most of the consumer are concern about the features being offered along
with affordability tag.


A smartphone (or smart phone) is a mobile phone with an advanced operating system. Smartphones
typically include the features of a phone with those of other popular mobile devices, such as personal
digital assistant, media player and GPS navigation unit. Most have a touchscreen interface and can run
third-party apps, and are camera phones. Later smartphones add broadband internet web browsing,
Wi-Fi, motion sensors and mobile payment mechanisms. Devices that combined telephony and
computing were first conceptualized by Theodore G. Paraskevakos in 1971 and patented in 1974, and
were offered for sale beginning in 1993.
The first mobile phone to incorporate PDA features was an IBM prototype developed in 1992 and
demonstrated that year at the COMDEX computer industry trade show. In 1996, Nokia released the
Nokia 9000 which combined a PDA based on the GEOS V3.0 operating system from Geoworks with a
digital cellular phone based on the Nokia 2110. The two devices were fixed together via a hinge in what
became known as a clamshell design. When opened, the display was on the inside top surface and
with a physical QWERTY keyboard on the bottom. The personal organizer provided e-mail, calendar,
address book, calculator and notebook with text-based web browsing, and the ability to send and
receive faxes. When the personal organizer was closed, it could be used as a digital cellular phone.
Smartphones before Android, iOS, and Blackberry, typically ran on Symbian, which was originally
developed by Psion. It was the world's most widely used smartphone operating system until Q4 2010.
Symbian was the most popular smartphone OS in Europe during the mid- and late 2000s. Initially,
Nokia's Symbian devices were focused on business, similar to Windows Mobile and BlackBerry devices
at the time. From 2006 onwards, Nokia started producing entertainment-focused smartphones,
popularized by the N-series. In Asia, with the exception of Japan, the trend was similar to that of
Android is an open-source platform founded in October 2003 by Andy Rubin and backed by Google,
along with major hardware and software developers (such as Intel, HTC, ARM, Motorola and Samsung)
that form the Open Handset Alliance. In October 2008, HTC released the HTC Dream, the first phone to
use Android. The software suite included on the phone consists of integration with Google's proprietary
applications, such as Maps, Calendar, and Gmail, and a full HTML web browser. Android supports the
execution of native applications and third-party apps which are available via Google Play, which
launched in October 2008 as Android Market. By Q4 2010, Android became the best-selling
smartphone platform.
In 2007, Apple Inc. introduced the iPhone, one of the first mobile phones to use a multi-touch interface.
The iPhone was notable for its use of a large touchscreen for direct finger input as its main means of
interaction, instead of a stylus, keyboard, or keypad as typical for smartphones at the time. In July
2008, Apple introduced its second generation iPhone with a much lower list price and 3G support.
Simultaneously, they introduced the App Store, which allowed any iPhone to install third-party native
applications. Featuring over 500 applications at launch, the App Store eventually achieved 1 billion
downloads in the first year, and 15 billion by 2011.

Windows Phone

In February 2010, Microsoft unveiled Windows Phone 7 with a User Interface inspired by Microsoft's
"Metro Design Language", to replace Windows Mobile. Windows Phone 7 integrates with Microsoft
services such as Microsoft SkyDrive, Office, Xbox and Bing, as well as non-Microsoft services such as
Facebook, Twitter and Google accounts. This software platform runs the Microsoft Mobile smartphones,
and has received some positive reception from the technology press and been praised for its
uniqueness and differentiation.
Firefox OS
Firefox OS (originally called the boot to gecko project) was demonstrated by Mozilla in February 2012.
It was designed to have a complete community based alternative system for mobile devices, using
open standards and HTML5 applications. The first commercially available Firefox OS phones were ZTE
Open and Alcatel One Touch Fire. As of 2014 more companies have partnered with Mozilla including
Panasonic (which is making a smart TV with Firefox OS) and Sony.
Blackberry OS
In 1999, RIM released its first BlackBerry devices, providing secure real-time push-email
communications on wireless devices. Services such as BlackBerry Messenger provide the integration
of all communications into a single inbox. There are 80 million active BlackBerry service subscribers
and the 200 millionth BlackBerry smartphone was shipped in September 2012. Most recently, RIM has
undergone a platform transition, changing its name to BlackBerry and making new devices on a new
platform named "BlackBerry 10."
Symbian was originally developed by Psion as EPOC32. It was the world's most widely used
smartphone operating system until Q4 2010, though the platform never gained popularity or widespread
awareness in the U.S., as it did in Europe and Asia. The first Symbian phone, the touchscreen Ericsson
R380 Smartphone, was released in 2000, and was the first device marketed as a "smartphone". It
combined a PDA with a mobile phone. In February 2011, Nokia announced that it would replace
Symbian with Windows Phone as the operating system on all of its future smartphones, with the
platform getting abandoned throughout the following few years.
Application stores
The introduction of Apple's App Store for the iPhone and iPod Touch in July 2008 popularized
manufacturer-hosted online distribution for third-party applications (software, computer programs)
focused on a single platform. Up until that point, smartphone application distribution depended on thirdparty sources providing applications for multiple platforms, such as GetJar, Handango, Handmark, and
PocketGear. Following the success of the App Store, other smartphone manufacturers launched
application stores, such as Google's Android Market in October 2008 and RIM's BlackBerry App World
in April 2009.
One of the main characteristics of smartphones is their screen. It usually fills virtually the entire phone
surface; screen size usually defines the size of a smartphone. They are measured in diagonal inches,
starting from 2.45 inches. Phones with screens larger than 5.2 inches are called "phablets".
Smartphones with screens over 4.5 inches commonly are moved around in the hand or used with both
hands, since the average thumb cannot reach the entire screen surface. Types of screen include LCD,
LED, OLED, AMOLED, IPS and others.


Devices that use more than two SIM cards have also been developed and released, notably the LG
A290 triple SIM phone, and even handsets that can run on four SIMs. Dual SIMs are popular in
locations where lower prices apply to calls between clients of the same provider; they also allow
separate numbers for personal and business calls on the same handset.
Dual SIM phones allow users to keep separate contact lists on each SIM, and allow easier roaming by
being able to access a foreign network while keeping the existing local card. Vendors of foreign SIMs
for travel often promote dual-SIM operation as a means to substitute their card for a home country
provider's card seamlessly on the same handset. The phones, which also usually include touch screen
interfaces and other modern features, typically retail for a much lower price than branded models.
The best user experience, and a robust ecosystem. Apple's biggest advantages lies in its interface and
ecosystem. For the average user, iOS is the superior mobile operating system, with the best apps, and
greatest continuity across all devices. Unlike Android, where devices can be hit or miss, all of Apple's
mobile products have been well received, and they work well together. Apple goes to great lengths to
have all of its devices running the latest version of its mobile operating system, and Apple's iTunes
remains the single hub for all things iOS.
This sort of polished, curated experience has resulted in unparalleled consumer loyalty: Surveys
indicate that more than 90% of current iPhone owners intend to stick with Apple over their next upgrade
cycle. The "stickiness" of the ecosystem is something other mobile giants can only envy.
Google Android has taken over the world. In contrast to Apple's walled garden, Google's Android is
fragmented. That might be seen as a weakness, but it also doubles as Google's biggest strength.
Android devices run the gamut: There are dozens of different manufacturers, screen sizes, and
hardware configurations; all delivered at wildly varying price points. That means there's an Android
device out there for just about anyone. That sort of variety has allowed Google's mobile operating
system to conquer the world. Last quarter, about 79% of the smartphones shipped worldwide were
running Google's operating system, up dramatically from just a few years prior. China is among the
markets that have been completely overrun, with the Chinese government going so far as to label
Android's dominance a cause for concern.
Integrated supply chain gives huge hardware advantage although, there are tons of different Android
smartphones, and majority are made by Samsung. Analytics group Flurry estimates that Samsung
manufactured about 60% of existing Android devices and as rivals like HTC struggle that dominance
could grow in the coming quarters.
Samsung's strength lies in its supply chain: Unlike its rivals, Samsung makes most of the components
that go into its Galaxy devices, including the screens, chips, and memory. Samsung's supply chain
advantage is meaningful; Apple isn't vertically integrated, and it's forced to rely on its suppliers for
certain components. Samsung's vertical integration was great enough to scare off Nokia.

Windows Phone
Microsoft's services, solid hardware to back it up Microsoft's mobile operating system, Windows Phone,
remains in distant third place behind Apple's iOS and Google's Android. Nevertheless, Microsoft has
some advantages when it comes to mobile. Microsoft's move to acquire Nokia's handset business gives
it some of the best phones (hardware-wise) on the market. The Lumia 1020's 41-megapixel camera is
unmatched, while Nokia's midrange phones, including the Lumia 620, have been well received. Critics
have praised Windows Phone's interface, with its live tiles and customizability falling somewhere
between Apple's iOS (more controlled), and Google's Android (more customizable). Most important is
Windows Phone's integration with Microsoft's services, particularly Office and Skype, which could make
it more attractive to enterprise users.
Microsoft's pursuit of an integrated strategy is about to be taken to the next level with the Nokia deal.
The company is hoping that it can increase gross profit per unit from $10 to $40 in the coming years
after realizing cost-saving synergies, and other integration benefits.
Micromax Informatics Limited is one of the leading consumer electronics company in India and the 10th
largest mobile phone player in the world. Over the past decade, Micromax has pioneered the
democratization of technology in India by offering affordable innovations through their product offerings
and removing barriers for large scale adoption of advanced technologies. Micromax is currently the 2nd
largest smartphone company in India. Micromax is a brand which is close to the heart of the youth and
celebrates the vibrancies of life and empowerment
Micromax products have become an extension of the Indian youth's lifestyle and dynamism. The
company has many firsts to its credit when it comes to the mobile handset market including the 30-day
battery backup, Dual SIM Dual Standby phones, QWERTY keypads, universal remote control mobile
phones, first quad-core budget smart phone etc. The brand's product portfolio embraces more than 60
models today, ranging from feature rich, dual-SIM phones, 3G Android smartphones, tablets, LED
televisions and data cards. Micromax sells around 2.3 million Mobility Devices every month, with a
presence in more than 560 districts through 1, 25,000 retail outlets in India.
With sales presence across India and global presence in Russia and SAARC markets, the Indian brand
is reaching out to the global frontier with innovative products that challenge the status quo that
Innovation comes with a price.
The India smartphone market grew by a whopping 186% year-on-year in 1Q 2014. According to IDC
Asia Pacific Quarterly Mobile Phone Tracker (excluding Japan), vendors shipped a total of 17.59 million
smartphones in 1Q 2014 compared to 6.14 million units in the same period of 2013. The shipment
contribution of phablets (which IDC defines as 5.5 inch-6.99 inch screen size smartphones) in 1Q
2014 was noted to be around 5% of the overall market. The category grew by 125% in 1Q 2014 in
terms of sheer volume over 4Q 2013. The primary reason behind this trend is the launch of low-end
phablets by international and local vendors alike.
The sub-200 USD category in smartphones contributed to about 78% hinting at the fact that the growth
in the India Smartphone market still remains constrained towards the low-end of the spectrum.

Top Five Smartphone Vendor Highlights

Samsung maintained its leadership in the smartphone market with 35% market share in 1Q
2014. High volumes came in from the low-end devices like S7262 Galaxy Star Pro Dual SIM
and Galaxy S Duos 2 S7582.

Micromax held onto its 2nd position with approximately 15% market share. The top selling
models for Micromax came in from the low-end Bolt Series.

Karbonn was 3rd position with approximately 10% market share. Its low-end range of 2G
smartphones did well in 1Q 2014.

LAVA climbed up to the 4th position with close to 6% market share. New XOLO launches like
A500S and A500 have fared well.

Nokia made its way back to the top 5 list with about 4% market share. The Nokia X launch
coupled with other low-end Lumia phones helped in improving the overall performance of the

IDC anticipates that the migration from feature phones to smartphones will increase as cheaper
variants of smartphones are launched in the market. Growth in the smartphone segment is expected to
outshine the overall handset market growth in the foreseeable future. According to the 1Q 2014 lDC
forecast, the India smartphone shipments will reach 80.57 million units by the end of CY 2014. IDC
expects that the Indian smartphone market will grow at a CAGR of about 40% for the next 5 years.


To analyze the consumers behavior towards buying of a smart phone.

Study and analyze the need, alternatives and the means by which a consumer purchases a
What are the factors affecting consumers choice.
To identify the various roles that people play towards the purchase of a consumers choice
of a smartphone.

Research Methodology
Research Design:
It is the plan, structure of investigation conceived so as to obtain answer to research question. It is the
specification of methods and procedures for acquiring the information needed.
It is concerned with:

Overall operational pattern

Framework of the project
Stipulates what information is needed

The first step that undertakes in the report was the selection of research. The research design, which
was adopted for the study was descriptive in nature.
Descriptive research: They are well structured. It can be complex, a high degree of scientific skill on
the part of the demanding a high degree of scientific skill on the part of the researcher. It can be taken
in certain circumstances. When the researcher is interested in knowing the characteristics of certain
groups such as, gender, profession, a descriptive study may be necessary.
Descriptive research method was used to know about the consumer buying behavior and preferences
towards smart phone.
Primary Data
The descriptive nature of research necessitated collection of primary data from smart phone users
through survey. Personal Interview method was used to collect the data, however the interviews were
conducted based on the structure questionnaire to collect data which can be analyzed later on.
Secondary Data
Internet, Online journals etc.
Research Instruments
Structured questionnaire was prepared to collect the data and it consisted of Multiple-choice questions,
direct questions and open-ended question.
Survey Limitations

Constraint - Sampling was not a perfect representation of the Indian population in larger extent
in terms of ethnicity, education, demographics etc.

Survey Length - Questions, the group could have captured more critical data but there were
concerns about the impact on participation.

Sample Size - The sample size considered was 30 from people of different age groups.

Method of Sampling - Convenience sampling method was used.


The data obtained was analyzed using MS Excel and was interpreted towards linking the same with
research objective. Data analysis reveals following in context of the behavior of the Indian smartphone

Motivation or need for buying a smartphone: 64% of consumers said the reason for them to
purchase a smartphone is to do multi-tasking followed by its utility for work.

Most preferred brand: Though there is a steep decline in sales and new entrants in affordable
smartphone segment 44% of the sample preferred SAMSUNG brand followed by 28% for
APPLE and 12% for Nokia.

Features preferred most in a smartphone: 44% of the sample considered that, having a good
Operating system/ Processor is essential for a smartphone. From the aesthetics and
convenience point of view 24% customers value the higher resolution of touchscreen and dualsim options in the smartphone.

Advice before purchasing a smartphone: 56% of the audience sought advice from Peers,
followed by 20 % from Technical expert and then family.

Information before purchasing a smartphone: with internet becoming a necessity it has also
empowered the Indian customer. It was observed 68% of the sample took information from
online retailers/reviews /technology websites followed by information received by word of mouth.

Method of buying: With the advent of online marketing and efficient distribution the
smartphone sales has significantly risen to 56% from online retailers as compared to 44% from
brand stores/retailers

Aspirations about future smartphone ownership: 44% of the audience preferred to retain
their current brand of phone with huge inclination 32% to own i-Phone with no substantial

Most influential media for marketing smartphone: Most of the smartphone manufacturers
are increasing profits by cutting on the advertising budget, though 38% of audience preferred to
treat TV commercials more influential followed by 29 % online advertisement and Magazines/
Newspapers (21%)

Influencer: 76% of audience made decision of smartphone purchase themselves followed by

12 % said that, their friend and spouse influenced them whilst purchase.

Most preferred time to buy a smartphone: 60% of audience would wait for a few months until a
discount sale is announced by the smartphone stores followed by 28% who said that they would
buy it online where they would get better deals than the retailers.


Based on the survey conducted following can be understood about an Indian consumers choice and
need to purchase a smartphone in the current scenario and conclusion can be drawn about future

Today most consumers prefer to have a smartphone because of the benefits it allows them to
multi task, than just use it for specific purposes which was the case earlier when specific brands
offered specific features only used for specific tasks.

The most preferred brand by consumers is Samsung, followed by Apple. This reinstates that
SAMSUNG is the Market Leader in smartphone in the current scenario in Indian market as
shown in the secondary data collected.

The consumers prefer good OS / Processors since most of them feel that it is the core feature of
the smartphone that will help them to multi-task faster.

Todays consumer is more aware and likes to purchase a smartphone if he/shes peer group is
convinced about the smartphone. The Peer group therefore acts as the Influencer to a
consumers choice.

Most consumers preferred to buy smartphones from the online stores/retailers making it the
best alternative over buying it from an authorized store available at market.

Consumers were also most influenced by the TV commercials followed by the online
Advertisements, thus showing the popularity of TV commercials though being slowly diminished
by the virtual medium of the internet world.

Most consumers were decision- makers and buyers for the smartphone purchase. Thus
showing that the consumer today is not just more economically capable but is also more socially
and technologically aware regarding purchase of smartphone.

Most consumers take a decision to buy a smartphone after collecting information from online
reviews or websites showing the growing power and reach of the internet in the consumers
search options for purchasing a smartphone.

After analyzing a consumers behavior towards the purchase of a smartphone in the current scenario
the 2
group feels that for a product to be sold by B2C, the following can be suggested to make the sale of

smartphone :

Since the customers need for a smartphone is primarily that of Multi-tasking, companies can
focus on phones with more utility features that have fast processors and good Operating
systems that help a consumer perform all the tasks simultaneously.

Since consumers prefer to buy the SAMSUNG brand of smartphone, the company should focus
on retaining its position as the market leader and look at launching more products which serve
as cheaper alternatives in comparison to their market competitors like APPLE ( global market
competitor) and MICROMAX ( Indian Market competitor).

SAMSUNG can also try and retain their spot as market leaders if they focus not only on TV ads
but also by catering to the field of digital / online advertising which has the potential of not just
retaining its present consumers but also drawing newer customers in purchasing their brand.

Since consumers are always looking for advice on the online websites and by reading reviews
left by consumers / technical experts online, before buying a smartphone; the respective brands
should make an exclusive online mechanism such that there are ample ways of not just
receiving a receiving an existing customers feedback about the brand of smartphone they are
using, but also post it in various websites and social networking sites too.