Apple and Google Block Indian eSIM Apps Following Government Directive
Tech giants Google and Apple have removed the international eSIM apps Airalo and Holafly from their Indian app stores following directives from the Department of Telecommunications (DoT). The DoT has also instructed internet service providers and telecom companies to block access to websites associated with these apps. The decision to ban these apps came after it was found that fraudsters were exploiting unauthorized eSIMs with international phone numbers for cybercrimes and defrauding people. Both Airalo and Holafly were removed from the Google Play Store and Apple App Store in India, but there is no official statement from either Apple or Google on this action. Providers of eSIM services, which offer digital SIM cards for voice calls and internet data without requiring a physical SIM card, are required to obtain a no-objection certificate (NoC) from the DoT. In contrast, other eSIM providers like Nomad eSIM and aloSIM remain accessible for users in India to download and use through these app stores. Airalo and Holafly sell eSIMs for multiple countries and regions.
Indian IT Firms Expected to Report Soft Q3 as Furloughs Impact Revenue Growth
Indian IT companies are expected to report a “soft” third quarter with higher-than-usual furloughs weighing on revenue growth. Demand outlook commentary is likely to be unchanged as clients continue to scrutinize discretionary spends and prioritize cost optimization. Top tier IT companies are slated to announce December quarter earnings this week. Tata Consultancy Services and Infosys will declare their Q3FY24 report card on January 11, followed by Wipro and HCLTech a day later. All eyes will be on management commentary from the IT pack on prevailing customer sentiment across BFSI and technology services, as well as the demand scenario panning out in key markets such as the US and Europe.
EaseMyTrip Suspends Maldives Flight Bookings Amidst India-Maldives Row
Online travel platform EaseMyTrip has suspended all flight reservations for the Maldives following derogatory remarks made by Maldivian ministers against Prime Minister Narendra Modi and India. Three deputy ministers in the Ministry of Youth Affairs in Maldives made the comments following Modi’s recent visit to Lakshadweep to promote local tourism. Following the controversy, several people on social media claimed to have canceled their trips to the island nation. In solidarity with the nation, EaseMyTrip cofounder and CEO Nishant Pitti posted on Twitter that they have suspended all Maldives flight bookings. The CEO expressed a desire for Ayodhya and Lakshadweep to turn out as international destinations. Searches for Lakshadweep have surged, with a 3,400% increase in on-platform searches on MakeMyTrip and a 2,900% increase on Ixigo since Modi’s visit.
Foodfluencing’s Monetization Challenges: Not Enough Money for All Influencers
Foodfluencing now has various subcategories of content creators, but the monetization opportunities have not grown proportionately. The launch of any food brand needs foodfluencers to create content around reviews and recipes, but the monetary growth has not been exponential. Unlike finance, which has fewer creators attracting larger audiences, food content is saturated with participants. The ability to make money is directly proportional to social media reach. Top tech influencers command higher rates than celebrity chef creators, while nano influencers rely on online reviews for income. Brand collaborations mainly benefit regional influencers, but compensations can still be meager. Foodfluencers also face challenges such as pressure to keep posting new recipes constantly, leading to fatigue.
Consumer Landscape of India: Growth Potential and Digital Adoption
India’s consumer tech sector is projected to grow from $100 billion in FY22 to $300 billion by 2027, at a compound annual growth rate (CAGR) of around 25%. Tier-II and tier-III cities are rapidly adopting digital technology and are aware of various platforms and apps. Fintech platforms, driven by payment apps, have wide usage even in remote areas. There is a growing willingness to pay for premium and personalized subscription models. These findings are from a report titled “Cracking the code: Unveiling India’s consumer landscape” by Chiratae Ventures in partnership with Google and 1Lattice. This report highlights India’s consumption potential and the increasing digital adoption in non-metro cities.
Analyst comment
News 1: Negative news. Apple and Google blocking Indian eSIM apps due to cybercrime concerns. Market impact: Other eSIM providers may face increased scrutiny and potential restrictions.
News 2: Negative news. Indian IT firms expected to report soft Q3 due to furloughs impacting revenue growth. Market impact: Decreased confidence in the IT sector, potential slowdown in IT spending.
News 3: Negative news. EaseMyTrip suspends Maldives flight bookings due to derogatory remarks against Indian PM. Market impact: Potential decrease in tourist travel to the Maldives, impact on the travel industry.
News 4: Neutral news. Monetization challenges for foodfluencers due to saturation and varying social media reach. Market impact: Minimal impact on the overall market.
News 5: Positive news. India’s consumer tech sector projected to grow, with increased digital adoption in non-metro cities. Market impact: Potential opportunities for growth in the consumer tech industry, especially in non-metro areas.
