Key Points
- 53 per cent of Indian smartphone buyers purchased devices online in 2016
- 45 per cent of respondents planned to subscribe to 4G within 12 months
- Security fears prevented 29 per cent from using mobile payments
More than half of Indian smartphone buyers purchased their devices online in 2016, while nearly half planned to adopt 4G networks within the following year, according to a Deloitte survey that tracked shifting consumer behaviour in the country’s mobile market.
The Mobile Consumer Survey 2016 found that 53 per cent of Indians bought smartphones through online channels, while 39 per cent continued to prefer traditional retail stores. The findings pointed to a significant shift in purchasing patterns as e-commerce platforms expanded their reach across urban India.
4G, a fourth-generation mobile network standard that enables faster data speeds and smoother video streaming compared to older 3G networks, emerged as a key growth area in the survey. About 45 per cent of respondents said they planned to subscribe to 4G or LTE, a related high-speed network technology, within the next 12 months.
Consumer trends
“With internet becoming cheaper and higher mobile data penetration, consumers are becoming extremely data hungry. Thus, usage of smartphone is only expected to grow from here onwards,” said Neeraj Jain, partner at Deloitte Touche Tohmatsu India LLP.
The survey revealed that communication services dominated early-morning smartphone usage. Social networks and instant messaging applications were the first things consumers checked on their devices after waking up, the findings showed.
Mobile banking emerged as a significant use case among smartphone owners. The survey found that 54 per cent of users checked their bank balances on their phones, while an equal proportion used their devices to pay utility bills. Service bill payments followed closely at 53 per cent.
Domestic money transfers accounted for 38 per cent of mobile banking activity, while international remittances stood at 31 per cent. These figures suggested growing confidence in mobile financial services among urban Indian consumers.
However, security concerns remained a barrier to wider adoption of mobile payments. The survey found that 29 per cent of respondents cited fears about security as their primary reason for avoiding phone-based payment transactions.
“The most common reason given for not using phone to make a payment was fear about security, cited by 29 per cent of respondents,” the survey noted.
The findings came at a time when telecom operators were expanding 4G network coverage across major cities, and mobile wallet services were competing for market share in the digital payments space.
Upgrading to faster networks
The Deloitte survey analysed mobile usage habits of over 2,000 Indian consumers as part of a larger global study covering 53,000 respondents across five continents and 31 countries.
By the numbers
- 53%
- Indians who bought smartphones online in 2016
- 45%
- respondents planning 4G adoption within 12 months
- 29%
- cited security fears for avoiding mobile payments
The India sample comprised representatives from eight urban cities. All respondents had internet access and fell within the 18 to 54 age bracket, indicating that the findings reflected the behaviour of digitally connected urban adults rather than the broader Indian population.
The concentration on urban, internet-enabled users meant the survey captured trends among early adopters of mobile technology rather than the mass market. Rural consumers and those without regular internet access were not represented in the sample.
The distinction mattered for understanding the trajectory of smartphone adoption and 4G uptake. While urban consumers showed strong interest in upgrading to faster networks, the pace of adoption in smaller towns and rural areas would depend on infrastructure expansion and device affordability.
Your Questions, Answered
What percentage of Indians bought smartphones online in 2016?
According to the Deloitte Mobile Consumer Survey 2016, 53 per cent of Indian smartphone buyers purchased their devices online, while 39 per cent preferred retail stores.
How many Indians planned to adopt 4G in 2016?
The Deloitte survey found that 45 per cent of respondents said they would subscribe to 4G or LTE networks within the next 12 months.
What was the main barrier to mobile payment adoption in India?
Security concerns were the primary barrier, with 29 per cent of respondents citing fears about security as their main reason for not using mobile payments.
How many people did Deloitte survey in India?
Deloitte surveyed over 2,000 Indian consumers from eight urban cities as part of a global study covering 53,000 respondents across 31 countries.
