Home > Uncategorized > India Mobile Handset Market Share

India Mobile Handset Market Share

August 27th, 2010

With the number of subscribers expected to reach 1bn by FY13 driven by rising penetration in rural areas we expect the Indian handset market to record a 24% CAGR over the next 2-3 years-from 157mn units in FY10 to 300mn units in FY13. We believe that this growth will be driven by both, new subscriber additions and strong replacement demand on a rising subscriber base.

Nokia has been the market leader and has dominated the Indian handset market with over 60% market share historically. However, with the entry of Chinese whitebox phones, Nokia started to lose substantial market share as these phones were not only cheaper but also offered features such as dual sim.

Over the past couple of years, a number of domestic Indian brands including Spice, Micromax, Karbonn etc have come up which simply import phones from various Chinese manufacturers and rebrand and sell them in the Indian market. These companies have been a greater success as they have invested in brand building and better marketing besides having a wider distribution presence than the local Chinese brands.

As such, Indian brands have garnered a market share of 12-14% over the past 2-3 years, largely at the expense of global brands (mainly Nokia).

Why Spice and MicroMax a Big Success ?
THey has been trying to differentiate itself from other domestic brands by designing its own phones and bringing out its own VAS and software that is pre-loaded in its handsets. These companies are also broadening its product portfolio by introducing Qwerty phones, phones with 12 MP camera and Android phones.

Categories: Uncategorized Tags:
Comments are closed.