Scribd Logo
Upload

Welcome to Scribd!

  • 83 views

    Mobile Industry India

    Uploaded by

    santoshsequeira
    Emerging Indian handset brands are gaining market share from established players like Nokia, with brands like Micromax and Lava now controlling 10% of the market. However, with over 50 local brands competing, not all will survive. While low-cost brands have established themselves, consumers are increasingly demanding smartphones and 3G devices. Nokia plans to compete at the lower end of the market with low-cost touchscreen phones. Local brands that focus on innovation and develop credible high-value smartphone offerings will be best positioned for long-term sustainability in the growing but competitive Indian market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    Mobile Industry India

    Uploaded by

    santoshsequeira
    83 views4 pages
    Emerging Indian handset brands are gaining market share from established players like Nokia, with brands like Micromax and Lava now controlling 10% of the market. However, with over 50 local brands competing, not all will survive. While low-cost brands have established themselves, consumers are increasingly demanding smartphones and 3G devices. Nokia plans to compete at the lower end of the market with low-cost touchscreen phones. Local brands that focus on innovation and develop credible high-value smartphone offerings will be best positioned for long-term sustainability in the growing but competitive Indian market.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Emerging Indian handset brands are gaining market share from established players like Nokia, with brands like Micromax and Lava now controlling 10% of the market. However, with over 50 local brands competing, not all will survive. While low-cost brands have established themselves, consumers are increasingly demanding smartphones and 3G devices. Nokia plans to compete at the lower end of the market with low-cost touchscreen phones. Local brands that focus on innovation and develop credible high-value smartphone offerings will be best positioned for long-term sustainability in the growing but competitive Indian market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    83 views4 pages

    Mobile Industry India

    Uploaded by

    santoshsequeira
    Emerging Indian handset brands are gaining market share from established players like Nokia, with brands like Micromax and Lava now controlling 10% of the market. However, with over 50 local brands competing, not all will survive. While low-cost brands have established themselves, consumers are increasingly demanding smartphones and 3G devices. Nokia plans to compete at the lower end of the market with low-cost touchscreen phones. Local brands that focus on innovation and develop credible high-value smartphone offerings will be best positioned for long-term sustainability in the growing but competitive Indian market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    Emerging Indian handset brands swarm over established mobile players -

    short-term blip or long-term shift?

    Low cost mobile handset manufacturers are taking on larger players and gaining
    market share, but as market demand changes can they survive?

    Gartner research estimates that Indian handset sales will hit 138.6 million units during
    2010 - 10% of global sales for the year - an 18.5% increase on last year. And it's just the
    beginning, sales are expected to hit 206 million in 2014.

    Challenger brands taking on Nokia


    While Nokia still leads the way with market share of 52%, evidence shows that cheaper
    domestic challengers are making a dent in their business. The Finnish company saw their
    slice of the action shrink by 11.8% in 2009-10.

    Others are feeling the squeeze, Sony Ericsson's share is down to 3%, from 6% and
    Motorola's has dropped 2.5%, to 1% market share.

    Is low-cost enough?
    On the back of heavy celebrity led marketing, low cost brands including Micromax
    (endorsed by Akshay Kumar), Lava, Spice, Karbonn and Lemon now control 10% of the
    market. But competition is intense - there are believed to be 50 local brands fighting it
    out - and despite the size of the market, not all can survive.

    While low cost entrants have a toehold in the market, "low cost" wont be enough alone,
    more Indian consumers are trading up to smart-phones and 3G devices. Gartner conclude
    that 16.7% of mobile devices sold in India this year will support 3G, up from 9.2% last
    year, this figure will leap to 69% of sales by 2014.

    Nokia set to hit back


    Nokia also plans to take them on at the value end of the market. The brand currently
    doen't offer a low cost touch screen handsest but this will change. D. Shivakumar, MD of
    Nokia India believes that, "when Nokia fills in that (gap), there is no reason why
    consumers will not choose it". Casting further doubt on lower cost rivals he says, "hit and
    run tactics don't win".

    Future outlook
    Those domestic brands that do survive will focus on innovation in line with market
    demand. Jaideep Ghosh of KPMG believes, "research and development will play a major
    factor in the sustainability of the Indian brands".

    While domestic brands have created emotional attachment through use of celebrity
    endorsements the real challenge is whether they can create credible higher value smart-
    phone services.

    In addition, they need to protect their hard fought share at the lower end of India's value
    pyramid.

    July 31, 2010 Add a comment

    Study concludes room for Indian mobile and web improvement

    Research proves how the mobile phone has helped millions of rural and urban
    Indian's tap in to and gain from economic growth.

    Government clearly understands the potential (or at least the value) of India's mobile
    market; an auction of next generation 3G licenses is delayed as they attempt to double -
    from US$ 1 billion - the existing agreed minimum bid price. With international telco's
    clambering to set up local JV's, buyers money is no object.
    Mobile users growing at 10 million a month
    The headlines are compelling; India is one of the worlds fastest growing markets with
    350 million users, growing at 10 million per month. And its importance has become
    clearer as recent research by Vodafone and Indian Council for Research on International
    Economic Relations shows.

    Mobile phone is catalyst for economic growth


    The study, India: The Impact of Mobile Phones, successfully demonstrates how the
    mobile phone acts as a catalyst to realizing productivity and efficiency. It provides
    evidence of how mobile communication has helped people within the agriculture and
    SME sectors, and urban slum dwellers tap in to Indian economic growth.

    More phones = accelerated growth


    Indian phone usage is still inconsistent, Delhi has 'teledensity' of 100%, Uttar Pradesh,
    India's most populous state has just 18%. States with higher mobile penetration can
    expect faster growth, 1.2% higher for every 10% increase in mobile penetration rate.

    Penetration rate of 25% appears to be the threshold to aim for; at this point the impact on
    economic development is amplified.
    While remote WiFi networks are revolutionizing rural communications in some areas,
    internet penetration countrywide is still less that 5%, of which only 0.4% is broadband.
    Some states - Bihar and Assam - have a complete lack of internet service.

    Mobile web connections


    The mobile is fast becoming the preferred way to access the web; 32 million mobile
    subscribers go on-line using wireless networks, yet Indian mobile coverage covers just
    61% of India's population, pitiful compared with Pakistan (90% coverage), Sri Lanka
    (95%), and China (97%).

    Tough decisions about investment in high speed data networks and broadband need to be
    made, if the worlds third largest mobile market is to fulfill its potential and the benefits of
    growth are to be more widely felt.

    Improved mobile and broadband connections


    To stay ahead of other mobile rampant emerging markets and protect its status as a global
    IT hub, India must take steps to increase mobile coverage and internet access, or risk
    harm to its global competitiveness.

    You might also like