Gadgets Ruled In 2016, Hold Out Promise For More Next Year

While affordable devices have done well in terms of shipment numbers, it has been the mid and premium categories that have been the revenue drivers for handset makers.
The likes of HTC, Oppo and OnePlus have continued to 

focus on higher price points, bundling in better specifications and delivering more power-packed devices. 

"We feel there will be a consolidation in the Rs 10,000- 20,000 segment. In 2016, the mid-premium segment jumped to 25 per cent of the category as compared to 17 per cent in 2015 which is a clear 89 per cent growth. Also, average selling prices (ASPs) will creep up in the category," Micromax co- founder Rahul Sharma said. 

The ASPs were Rs 8,400 in 2015. In 2016, it crossed Rs 9,000 while the volumes stagnated. 

"We clearly see this trend to continue in 2017 as well and ASPs will continue to grow upwards," he said. 

Lenovo India Executive Director, Mobile Business Group, Sudhin Mathur agreed, saying even though refresh cycles have reduced to under a year now, users are comfortable shelling out more money for a smartphone with better set of features and looks. 

Manufacturing in India has also gained ground with companies like Xiaomi, Lenovo, Vivo, LeEco and Coolpad now meeting a significant part of their requirement locally. While companies continue to source components from established locations like China and Taiwan, they are hopeful that government initiatives will further help in maturing of the ecosystem and support full-fledged manufacturing domestically. 

A major push in this direction may come in 2017 if Apple starts manufacturing in India. The iconic iPhone maker has sought incentives from the Indian government as it views the country among its fastest growing markets globally. 

The year 2016 also saw Samsung -- the world's largest handset maker -- in the firing line following reports of its flagship 'Note 7' devices catching fire. 

What started as a few stray incidents escalated into bans on aircraft across countries like the US and India, and Samsung was forced to recall and then pull the plug on the device. 

2017 will also mark the return of 'Nokia', with the smartphones being powered by Android operating system this time. Following its association with Microsoft a few years ago, Nokia had adopted Windows Phone OS and that many believed added to the decline in popularity of the brand. 

While Microsoft bought the smartphone business from Nokia, the Finnish company retained the rights for the 'Nokia' brand name and has now inked a 10-year licensing agreement with HMD Global to unveil a fresh line-up of smartphones. HMD is also bringing in feature phones to ensure it does not get left behind this time. 

The year was tough for iconic smartphone brand BlackBerry as well. While it continues to attempt a re-haul to revive fortunes, it will be some time before its efforts like outsourcing manufacturing and focus on software instead of hardware start bearing fruit.

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