India the last big untapped market for the Tech Behemoths?
The WSJ analyses the appeal of India as the last great untapped tech market. There are still several 100s of million people who will join the market in the next few years. Comparing this to for example the US, the appeal is clearly visible;
So, we can expert the market to increase by possibly 700 million people.
An important consideration is of course if these people can afford a phone. The WSJ shows that the average price of a phone is much lower in India. Phone prices can probably go even lower, as companies such as Xiaomi, Samsung, Lenovo, and Oppo will be eager to gain market share in India. Indian players are nowhere to be found in the top 5 Smartphone brands in India. The following chart also shows that Data is becoming increasingly cheaper.
Data also show that Indians for the first have downloaded more than Americans. They are playing catch-up, and the year on year growth in users on Social Media in India is was 31% in 2017.
A big appeal of course is that smartphones facilitate mobile payment. India is actively moving to a cashless society, and this has been facilitated by the Unified Payment Interface (UPI) an instant real-time payment system for smartphones facilitating inter-bank transactions. As people get more used to mobile payments, E-commerce is projected to skyrocket.
It is not as easy to monetize the Indian market, however. A major issue is that India is still a relatively poor country.
A second issue is that mobile internet speeds are still quite slow, and don’t we all know that’s big issue.