iWorld

×

Small Indian cities fuel smartphone sales; global consumer spend on digi content to rise: IDC

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2017/01/10/Smartphone-800x800.jpg?itok=E3OpA3OR

NEW DELHI: Non-metro Indian cities, mainly those in Tier 2 and 3 (population between 20,000-100,000), have fuelled growth in smartphone sales during the festive season between August and October, according to International Data Corporation (IDC), which said total sales in such cities grew 23.3 per cent over the previous month as per Monthly City Level Smartphone tracker.

In another forecast, IDC said global consumer spending on digital devices, services and content will reach $3.4 trillion in 2020, rising 4.7 per cent annually from 2015. The global forecast is from a newly launched research program, Consumer Spending Priorities: Tech and Services, which provides a holistic view of consumer spending across all goods and services.

Meanwhile, Retail Asia, quoting IDC data relating to Indian smartphone sales, said the growth was largely due to vendors focusing on new affordable launches, higher spending on marketing and innovative payment options. IDC India senior market analyst Upasana Joshi said the key four months from July to October 2016 made up more than 40 per cent of annual smartphone sales. The festive season in India started in August with Independence Day and ran until Diwali in October.

“Multiple sales by all major e-commerce players in October with their high-decibel marketing, attractive payment options, and exchange offers also helped in growing the market. The top 8 to 10 cities of India constitute the major portion of online sales, leaving a yawning gap between these markets and the still largely untapped smaller towns,” Joshi was quoted as having said.

Joshi, who disclosed that China-based players contributed significantly to the growth at the offline retail counters while continuing to dominate the online channel, said, “These vendors collectively accounted for more than 40 per cent market share in the top 30 cities during Diwali month, primarily driven by 4G enabled handsets. Oppo and Vivo continue to shake the traditional line up of Indian vendors with their superior build quality, massive marketing investments in the offline channel.”

Global Digital Spending on Content To Rise By 2020

Coming to market research firm’s latest data on global digital spending by consumers, IDC said the share of consumer digital spending on devices will fall from 28 per cent in 2015 to only 22 per cent by 2020, but consumer spending on digital content will rise at a 12.6 per cent annual clip, according to the CSP, a twice-annual pivot table. Digital services, however, will maintain its 61 per cent share of consumer digital spending by growing 4.9 per cent annually.

According to IDC, a global provider of market intelligence, advisory services, and events for the IT, telecommunications, and consumer technology markets, while total consumer digital spending is going up, the nature of spend is changing. For example, just as consumers shift spending towards digital content, consumers worldwide are moving digital spending towards online media and away from entertainment devices.

Consumer spending on online media will grow 12.6 per cent from 2015 to 2020, while spending on digital communications devices and services will grow at a mere 1.6 per cent annual rate as consumer spending on voice services, both fixed and mobile, declines in absolute terms from 2015 to 2020.

"Clearly the value of the devices is derived primarily as conduits for the content and services that they transport and the applications that they enable," said Jonathan Gaw, research manager for IDC's Consumer Spending Priorities: Tech and Services program.

Much of the change in consumer spending categories is driven by regions outside of the United States, where the shift among spending categories continues but is largely complete and the share of spending by solution type is largely stable, IDC said, adding that in developing countries, however, consumer spending on digital content and services vs. devices, is still gaining, while online media spending also increases in wallet share.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/24/akirtel.jpg?itok=vsm7xIzJ
Airtel offers up to 1,000 GB free data on broadband plans

After Jio announced its upcoming broadband plans, other players have also announced changes in their own. Airtel broadband is now offering its basic plan with 200GB additional data. The entertainment plan offers 500GB of additional data and the premium plan offers 1,000 GB of additional data that...

iWorld Broadband
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/netflix.jpg?itok=IxVhHdRh
Special episode of man v/s wild, featuring pm Modi on Netflix

MUMBAI: Indian Prime Minister, Narendra Modi’s special interaction with celebrity survivalist anchor, Bear Grylls is now streaming exclusively on Netflix across the world. The special edition of Man vs Wild, the global reality TV sensation hosted by Grylls has already broken Super Bowl 53s record...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/ballers.jpg?itok=stp-9No-
Ballers starring Dwayne Johnson returns with Season 5 on Hotstar Premium

MUMBAI: After a successful four season run, Comedy series Ballers returns with its fifth season! Starring Dwayne Johnson (Spenser Strasmore) and Created by Stephen Levinson, Ballers explores the glamorous and often cutthroat world of pro football through a group of past and present players striving...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/flipkart.jpg?itok=RyAmgYZu
Flipkart's entry into video streaming space more of an e-commerce play

Ever since Flipkart announced its entry into India’s booming video streaming space, it’s been the talk of the town. The Walmart-owned e-commerce platform will open it up for Flipkart Plus loyalty program members in a fashion similar to Amazon Prime Video.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/22/power.jpg?itok=QWT2VZnd
Witness the ultimate betrayal in Power season 6

MUMBAI: Success is the best revenge and James 'Ghost' St Patrick is here to claim both. Up against his son, it’s time for the ultimate showdown in New York and everyone will be slurped into this vortex. But by the end of it all who will remain standing?  SonyLIV, India’s first premium video on...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/22/rangbaaz.jpg?itok=NGpoc7eY
ZEE5 announces season 2 of flagship franchise Rangbaaz

MUMBAI: After the phenomenal success of the first season of its marquee gangster drama, ZEE5, India’s fastest growing OTT platform, announces Rangbaaz Season 2 starring Jimmy Shergill and Gul Panag in lead roles. Written by Siddharth Mishra (who also wrote Season 1), directed by Sachin Pathak and...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/21/netflix.jpg?itok=vhpNbWR9
Netflix sees 83% rise in price-related search after India-specific plan

MUMBAI: SEMrush, the online visibility management and content marketing SaaS Platform, recently conducted data analysis on three most trending media services in India – Netflix, Amazon Prime, and Tata Sky. The case study revealed amazingly interesting facts regarding the growth of traffic from...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/21/hotstar.jpg?itok=C6AWsALl
From novels to personal screen – these book adaptations on Hotstar Premium are a must watch

MUMBAI: While some people find joy in turning pages and letting imagination take over, others simply prefer enjoying the celluloid version of the same story. As the constants debate of ‘which is better’ continues, here’s a look at some TV shows based on books that you can enjoy right away on...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/21/mobile-analytics.jpg?itok=zUD0NdtO
Digital segment projected to reach Rs 386 billion by FY22: KPMG

The digital segment of the India media and entertainment industry is projected to reach Rs 386 billion by FY22 from Rs 173 billion in FY19. The burgeoning sector is set to overtake print media and be behind TV within the same period, according to India’s Digital Future, a report by KPMG. By FY24,...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories