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India's Smartphone Economy

The World's Second Largest Phone Market

How India became the world's second largest smartphone market after China, with hundreds of millions of users, and how cheap phones and data drove adoption.

India is the world’s second largest smartphone market, after China.

Users

Hundreds of millions of Indians use smartphones, many as their first internet device.

Drivers

  • Cheap phones under ₹10,000.
  • Cheap data after Jio’s 2016 launch.
  • UPI, video and social media apps.

Replacement cycle

Many users now upgrade rather than buy their first phone, so growth slows.

Premiumisation

Sales of expensive phones are growing faster than cheap ones.

Economic impact

Smartphones power digital payments, gig work and e-commerce.

The first internet device

A farmer in Madhya Pradesh uses his first smartphone to check mandi prices and pay via UPI.

Thinking most Indians first used the internet on computers

Most used smartphones.

Key takeaways
  • India is the second largest smartphone market.
  • Cheap phones and data drove adoption.
  • Upgrades now drive sales.
  • Premium phones are growing fast.
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