Why India is the Next Frontier for Mobile

Girl Talking by Ramesh LalwaniUnmodified picture by Ramesh Lalwani under Creative Commons 2.0

All over the world, opportunities are flourishing for mobile development (and investment). In some countries, like the U.S.,64% of adults owned a smartphone in 2015. In China, 68% of adults have a smartphone. Yes, these countries still offer room for growth. But not like India.

Indian use of smartphones is rapidly growing. Google-sized companies will be created over the next decade to satisfy user demand, which is significantly more than in the U.S. and China over the same time period. Here’s why India is primed for massive mobile growth. This is why we are getting more aggressive in India.

Mobile Growth All Over the World

It’s hard to believe that just 20 years ago, the world had about only 80 million mobile phone users, representing 1% of the world’s total population.

By 2014, the world’s mobile phone user base had grown to 5.2 billion, or 73% of the population. 40% of that user base had a smartphone.

Based on these stats, it’s hard to argue against mobile development as a lucrative business endeavor all over the world. Even so, growth in countries like China and the U.S. is slowing. Based on what I’m seeing as I invest and work with Indian companies, India offers the greatest opportunity for mobile investment. According to a report by IAMAI and KPMG, the number of mobile Internet users is set to double by 2017 to 300 million!

India already has over 900 million mobile phones, representing 79.39% of the population, and it’s on the path to having more smartphones than the entire U.S. population. It has the second highest number of mobile phones in use, after China and before the U.S.

In 2014, the number of smartphones in India grew 54%, and is expected to reach 651 million by 2019.  In 2013,  only 6.2% of Indian people owned a smartphone. India’s smartphone usage is growing faster than any other country. It’s currently the third largest smartphone market in the world.  

Indian internet penetration is also rapidly increasing. India currently has an internet userbase of at least 232 MM users. This is only 19% of the population, which leaves quite a bit of room for growth.

Scalability

Having a population that is four times bigger than that of the U.S at 1.27 billion people, offers a massive opportunity to scale a business. Though, margins in India are typically pretty low, the numbers are massive. There are hundreds of millions of people across India  who will access new technology for the first time via their mobile phones. They will want entertainment, content, services, and communication. Startups that can figure out how to meet the demands of mobile-first urban and rural Indians will create multibillion dollar companies. Even now, most people use a mobile phone to access the Internet vs a computer or desktop – “According to Meeker’s report 65% of people accessing the internet in India do so from a mobile device and 41% of e-commerce in India takes place on mobile.”

Growth in India

According to the App Annie Index, “Emerging markets grew as low-cost smartphones continue to penetrate India and Southeast Asia. First-time smartphone owner numbers are on the rise.”

I also think that people are inspirational at their core. If you provide the best hardware, QoS, content, and services, they will pay for it as long as their payment options become easier and ubiquitous.”

Takeaways

Indian use of smartphones is growing rapidly. The cost of smartphones continue to decline. “In 2015, the number of mobile internet users from rural area doubled from 2014, and in 2016 the growth percentage is estimated to surpass all the previous figures.”

  • India is a market that can’t be ignored by corporations, investors, and startups
  • Growth in mobile usage and GDP is surpassing the US and China
  • Internet penetration is second to China and there’s still a tremendous amount of growth left with less than 25% of the population online
  • India is one of the youngest countries on the planet with a massive workforce