BANGALORE: Every now and then, there have been news like, “A new smartphone with lowest price”, or  Indian markets are receiving a continuous decrease in the smartphone prices, in spite of being recognized as the fastest growing smartphone market. Surely, for the smartphone market to aspire, the software sells could do the needful, reports Economic Times.

An enterprise mainly comprises of three parts, hardware, software, and services. With the passage of time, its sales keep on changing and India’s market is booming in software sector.

The app makers, content, and value-added service providers are making successful deals for the device makers, therefore the vendors are interested in growing business with software and content distribution deals.

According to Suneet Singh Tuli, the CEO of low-cost tablet maker Datawind, “We don’t lose money on the hardware. Five years down the line, it is reasonable to expect half our revenues from the recurring stream.”

In a country like India, where a smartphone is easily available within the range of Rs 6,000, the profit margin is not up to the mark, but these smartphone vendors boost up their profits from  value-added services i.e., heavily banking on the software sales for  profits.

Karan Thakkar, senior market analyst at IDC says, “Chinese Vendors who have services strategy are targeting a higher price point where the consumers are more likely to buy services, whereas with the lower price point devices, vendors will have to rely on deals with service providers.”

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