Smartphone makers dial up growth in India

Smartphone-makers are in a race to the bottom of India's economic pyramid as they battle for customers in the fast-growing low-end market segment where analysts say opportunities are vast. India is now the quickest-expanding smartphone market globally and the third-largest market after China and the United States, according to Britain-based consultancy Canalys. India 'is a market that offers huge potential as hundreds of millions of users have yet to upgrade', said Jessica Kwee, an analyst at Canalys. Sales in the country of 1.25 billion people rose by 84 per cent in the quarter to June from a year earlier as users traded up from basic handsets to more sophisticated models, spurred by ever lower prices. Local and foreign companies alike are sacrificing profit margins to build market share in India, which counts 914 million mobile users, according to government data. The cheapest smartphones now retail at 2,000 rupees ($A35.70), down from an average 15,000 rupees two years ago, according to AAP.