Smartphones' Economic Value In India 50% Higher For The Rich Compared To Middle Class: Study Finds

A recent study found that the economic value of smartphones for the rich is nearly 50 per cent higher than that of the middle class. 

According to the research, the middle class, characterised by an annual household income ranging from Rs 5-30 lakh, experiences economic value from their smartphones at a rate 10.1 times greater. Although this value is less than half of what the rich segment enjoys (22.5 times).

The Vivo study also highlighted the economic value derived from the different digital activities that a consumer performs on his phone. It said that service booking and hiring emerged as the most profitable, with a return of 8 times the investment, followed closely by grocery purchases at 7.9 times, utility bills and shopping at 7.6 times, essentials at 7.4 times, and digital cash at 6.9 times. It was observed that affluent segments contributed the most to digital services, including travel ticket bookings, hiring service professionals, and booking cabs, among others.

Furthermore, the study indicated that individuals between the ages of 41 and 60 derived the highest average economic value of 7.7 from their smartphones, only slightly surpassing young adults aged 25 to 40, who recorded a value of 7.6. Meanwhile, individuals between the ages of 18 and 24 attained an economic value of 5.5. 

On a geographical scale, metro cities exhibited an average economic value of 7.6, followed by non-metro cities with a value of 6.2.