According to the HSBC Report, India has pipped China to drive the smartphone volume growth in the world. The main reasons are falling prices of high-end devices and growing adoption of 3G services. The report says China was the volume growth engine since 2013. As China’s smartphone penetration having reached 95% in 2014, further growth will be derived from other emerging countries.

The smartphone shipments will grow at a 2014-19 CAGR (Compound Annual Growth Rate ) of 26% in India, followed by 19% in Middle East (West Asia), 8% in Latin America and 5% in China. India’s smartphone penetration was merely 30% in 2014. This is far below 95% for China and 72% at the global level.

India will account for 12% of global smartphone market with a penetration rate of 65% in 2019. The report noted that the online channel currently accounts for less than 10% of smartphone sales in India compared to 20% in China.