The impact of mobiles in India

The impact of mobile phones in India has been transformative, driving economic growth through the app economy and related industries, and changing consumer behavior by enabling widespread e-commerce. However, this has also led to negative consequences, including a rise in addiction, screen dependency, and health issues like eye strain, sleep disturbances, and mental health problems such as anxiety.

In 2025, mobile technology is profoundly impacting India by driving significant economic growth, enabling comprehensive socio-economic transformation, and leading a strong market shift toward premium and 5G smartphones. The nation has become a major global manufacturing hub for mobile devices, moving from import dependence to being a leading exporter.

India’s smartphone retail landscape in 2025 is undergoing a structural transformation, moving from value-driven mass consumption toward experience-led and premium-oriented purchasing behavior. This shift is being driven by rising disposable incomes, broader access to consumer financing, and growing demand for technologically advanced devices that enhance both productivity and lifestyle.

Another notable trend in India’s smartphone market is premiumization. Global smartphone brands such as Apple and Samsung are capitalizing on this transition by combining local manufacturing with strategic pricing, thereby making their flagship models more accessible to Indian consumers. Apple’s record performance shows the success of its expanding retail footprint and localized assembly operations, while Samsung continues to strengthen its appeal among aspirational buyers through its diversified S Series and Galaxy A lineup.

At the same time, Chinese brands, including Vivo, Oppo, and OnePlus, are broadening the market’s premium segment by offering “affordable premium” devices in the INR 30,000 (US$341.9)- 45,000 (US$512.9) range. These models emphasize camera quality, fast charging, and AI-driven experiences – features that resonate strongly with younger, tech-savvy consumers. OnePlus, in particular, is regaining momentum through renewed collaboration with offline partners and its planned INR 60 billion (US$683.9 million) investment in domestic market expansion, signaling a focused strategy to capture India’s growing mid-to-premium retail base.

In rural areas, mobile ownership jumped from 77.6% to 96.5% between 2011-12 and 2023-24. In urban areas, it increased from 92.2% to 97.7%.

Mobile is a top priority across rural, urban households. The most dramatic shift is visible in how households consume media and information. Mobile phones have reached near-universal ownership across the country.

The report clearly points to a substitution effect. In today’s India, progress is no longer measured only by what families eat, but by the assets they own and the connectivity they enjoy.

Mobile, to many Indians, is not just a device to communicate, but their first and only window to the external world - their first and only window to express their individuality. Mobile allows them to do activities which they could not do freely in the cultural context (express opinions openly, date, buy lingerie, have intimate conversations). Mobile also satisfies the thrifty gene - it allows people to compare prices, read reviews, hunt for sales and discounts, pay cash on delivery and avail of goods returns policies. Mobile technology and digitization have hugely influenced consumers’ system behaviour and decision-making.

A large part of India’s consumption is through traditional business delivered using bricks and mortar channels. This is where the next disruption is likely to occur. It is easy for an e-commerce or shared mobility company to leverage mobile, but it is much tougher for a fast-moving consumer goods company (FMCG) or automotive behemoth to change their business models to harness mobile-first.

Consumers will exhibit more mobile consumption (on-the-go) as well as experiential consumption (products as a service). The role of the point of sale will transform, as consumers search online before purchasing. Businesses will need to match the level of transparency demanded by price-sensitive, connected consumers who compare and critique in real time. Mobile-first will unlock opportunities for location-based targeting, which offers understanding of cross-platform shopping behaviour at a scale unmatched elsewhere in the world.

This is a wake-up call for corporates. Mobile and digital technologies are now part of the very fabric of the world in which we live. We can’t afford to overlook the influence of technology on our ability to reach and serve customers, and on our operational delivery. Organizations will have to disrupt themselves, whether they like it or not. They must revisit their consumers’ aspirations, experiences and journeys, and redefine their business models to reach and engage target audiences.

There is going to be a big transformation in our production, distribution, and consumption systems. There is no escape from having to embrace game-changing technologies, such as artificial intelligence (AI), the Internet of Things (IoT), autonomous vehicles, drones and robotics, and managing the massive transformation of business and operating models that will ensue. Exciting times are ahead.