Shipments of 4G-enabled smartphones outpaced market growth, comprising 50+% of total smartphones shipped in 4Q15 (vs 30-35% in 3Q15) in India. This is driven by increased roll-out of 4G models by device OEMs, coupled with falling ASPs, in our view. We believe that a maturing 4G eco-system (hardware + services) should prompt consumers to upgrade their devices, leading to increased replacement demand. Further, smartphone penetration in India is still below 25% (vs 60+% in mature markets such as the US, UK and China). Accordingly, we believe that Indian smartphone shipments will continue growing at a healthy rate (c.30% yoy) over the coming two to three years.
