Most mobile users in India plan to upgrade to a new smartphone in 12 months: Counterpoint

The user's intent to upgrade in 4G smartphones is mainly driven by VoLTE-only Reliance Jio, as the mobile network operator is offering free data plans

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Mobile phone replacement cycle is gradually shortening in India. The latest report from Counterpoint Research claims that most of the mobile phone users in the country plan to upgrade to a new mobile phone in the next twelve months.

“As per the survey, two in three users plan to upgrade to a new mobile phone in the next twelve months. This is a departure from an average of 24-30 months to under 20 months upgrade cycle,” the report cited. The shift towards upgrading to a new smartphone is driven by the need to choose for a smartphones that comes with 4G LTE capability. Furthermore, the users also desire to go for a phone that has ‘better memory, storage or battery capacity.’ The survey report indicates that the user’s interest in 4G smartphones is mainly driven by VoLTE-only Reliance Jio, as the mobile network operator is offering free data plans, most users now desire to purchase a 4G VoLTE enabled smartphone to get free internet access.

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Source: Counterpoint

Besides, the report cited another interesting factor that almost one in three repsondents consider phones with a fingerprint sensor and a better front camera as key features in their next purchase. Notably the online reviews of a product have also become the most important source of information for the user’s pre-purchase research. “Seven out of ten respondents consider online stores as their preferred point of purchase. Furthermore, Flipkart is the most preferred online retail platform for buying a mobile phone,” the report added.

Source: Counterpoint
Source: Counterpoint

Pavel Naiya, a Senior Analyst at Counterpoint Research said, “Online retail platform competition is heating up. While Amazon is investing heavily in India, Flipkart has successfully secured $1.4 Billion in funding to secure its place as leading online channel. We expect ultimately there will be three dominant online sales channels. Paytm is currently in a minority position, but the strategic investment by Alibaba suggests it will grow in strength while Snapdeal fades.” Naiya further said, “With rising competition, these platforms need to create differential push and pull strategy. Firstly, by adopting an effective social commerce strategy and secondly investing in next generation technologies such as Artificial Intelligence (AI) to utilize the huge data on online purchase patterns.”

Essentially, the Global Consumer Insights is a primary consumer survey conducted by Counterpoint Technology Market Research through a random sample of 1500+ respondents in India.