The report also notes that that smartphone demand in Tier 2 and 3 cities is outgrowing demand from Tier 1 cities because urban markets have begun to saturate
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It seems like expansion of 4G networks, led by Reliance Jio, is making Indian citizens make more careful considerations before buying a smartphone. According to a report by IDC, the expansion of 4G is driving customers to choose 4G device over 3G. In its report, the firm notes that the “rapid expansion and promotion of 4G network footprint by telecom operators in India, led by Reliance Jio. This is compelling customers across city tiers to be future ready, by choosing more 4G than 3G devices, with more than 80 percent of the smartphones being 4G compatible across all city tiers.”
IDC also noted in its report that the smartphone demand in Tier 2 and 3 cities is outgrowing demand from Tier 1 cities because urban markets have begun to saturate. It states that vendors are now looking to tap consumer base in Tier 2 and 3 cities by setting up an offline distribution market.
IDC’s report also talks about purchase influences and states that 70 percent of smartphone consumers prefer offline channels over online due to the comfort and experience of touching and feeling the phone before making their decision. Further, it notes that offline retail is still the biggest sales channel in India contributing two-thirds of smartphone sales in India. As for online sales, IDC notes that around one third of consumers prefer to make their purchases online. One out of every two online consumers prefer e-commerce due to the convenience and ease of comparing different smartphone models.
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