"An examination of the present scenario, coupled with an analysis of historical trends tells us that the market for India mobile handsets will settle around 250 million units in 2016, a 4 per cent growth compared to 2015," the report, India Mobile Handsets Market, by CyberMedia Research (CMR) said.
The smartphone segment grew at an annual average rate of 32 per cent to about 95 million in 2015 from 77 million a year ago. The report said it expects 4G shipments to cross 50 million units in 2016.
"The decline in feature phone shipments was 17 per cent (from 180 million in 2014 to 144 million in 2015) on an annual average basis," the report said.
In 2015, 3 out of every 4 smartphones shipped were priced at less than or equal to Rs 10,000, the report said.
Also Read
"Understanding this price sensitivity, handset vendors will continue to widen their portfolio for this sub Rs 10,000 segment. In 2016, we do not expect this structure to change broadly; however, the contribution of less than Rs 5,000 sub segment is likely to increase," the report said.
The depreciating value of rupee against US dollar can lead to pressure on margins of mobile phone companies making phone in India, the report said.