As Smartphone Usage Rises, India SMBs Are Set to Spend US$173M In 2011

With the world spending more on smart phones, India SMBs are as well. With 54% of India medium businesses (MBs, companies with 100-999 employees) currently using these devices and a clutch of innovations on the horizon, smartphone penetration and spending are poised for growth. In 2011, India SMBs (companies with less than 1000 employees) are set to grow that spending to $173M, according to New York-based Access Markets International (AMI) Partners.

"At present many smartphone users in India do not use the data services that these phones offer," says Priti Verma, Research Analyst at AMI-Partners, Bangalore. "Insufficient data bandwidth is hindering usage of these services. With the advent of 3G spectrum we are observing an increase in the coverage that phone companies are able to offer and in turn smartphone penetration levels and data plan usage are on the rise," continues Verma.

Smartphone vendors can improve demand for smart phones by continuing to reduce prices as well as offering more and varied plan options. "Users prefer using only one device for presentations, email or downloading information," adds Verma. "This eliminates the need to have multiple devices such as a projector, computer and a phone when conducting normal business and personal transactions."

The landscape of mobile internet usage has changed to such an extent that in some cases the first internet experience is now through a mobile phone rather than a PC. "Search, financial services, sports, online trading and entertainment get a big share of smartphone usage," says Verma, "and people spend more time on smartphone entertainment than talking or sending messages."

Currently India SMBs' installed base of smartphones is less than one million with the maximum penetration of these devices understandably in the professional services vertical. Data show that India SMBs are planning increased spending on smartphone data plan services. With many more companies recognizing the advantages of using social networking, podcasting and micro-blogging, it seems natural that the adoption of the smart phone is on the rise throughout India.

As India continues to move towards a more mobile workforce, the smart phone will become an essential tool that all employees will require. With the improvement in the quality of navigation maps and simplification of licensing terms, phones with GPS capabilities are expected to become more in demand. And the emergence of open source operating systems and 2GHz processors will also help also boost smart phones. Looking forward, all of these changes together will forge a new paradigm of a true collaborative ecosystem.