Micromax predicts increase in demand for cheaper smartphones in 2016

The year has just begun to witness greater demand in large screens and videos for cheaper smart-phones that will enable suitable growth of 3G and 2G, Micromax, one of the country's leading smartphone makers, has predicted.

In 2016, entry of Chinese and Indian brands in mobile manufacturing market would be a key driver for new business models to emerge to ensure unit level profitability, the Micromax study noted, adding that it may be difficult for Chinese companies to enter and flourish if the Goods and Service Tax (GST) is implemented.

Samsung and Micromax dominated the handset market last year by ramping up domestic manufacturing. "The massification of smartphones will continue in India to keep on catering to the needs of first time smartphone users and the growth will depend on vernacular usage, access costs and penetrating distribution and awareness," the findings showed.

The study states that in 2016, e-commerce websites may flatten out as these platforms will cut back their cash burns. However, the reach will expand to newer towns. Mobile-led services across sectors like entertainment, travel, healthcare and banking will become mainstay and mobile internet ecosystem will grow beyond the 150-200 million smartphone users