Monday, February 28, 2011

Indian market is full of chinese mobile handsets

Here we go for our curvy topic…..yes…..….in my languages …living without mobile….nooo….can’t even imagine.

Today mobile phones have moved beyond their primary role of voice communications and have graduated to become an essential entertaining device for mobile users. We are in an era where users buy mobile phones not just to be in touch, today’s youth use it to express their thoughts, for social networking, to show their interests, play games, read news, surf on the internet, listen to music, chat instantly with friends & families and even check their bank balances. There are various phone manufacturers providing handsets.

Report 1

As per the report of IDC, 38.63 million mobile handsets were sold during the period of April-June 2010. This is a growth of over 6.3 percent quarter on quarter. On the other hand the low cost handsets have a market share of 15 percent as against 20 percent cornered by unbranded handsets.
As per the ICA            report, the average selling price of mobile handsets has come down from 5000 to 2500. "Around 92 percent of handsets have a price tag less than Rs. 6000, while 73 percent cost less than 3000. With higher mobility penetration, the low-cost handsets are bound to thrive”.

Report 2

According to the second report, the import of unbranded Chinese handsets has grown four fold in just 3 years from 5.5 million handsets in 07-08.
So, my question here is about when these 3.5 million substandard and non-IMEI imported (per month) handsets will vanish from markets, when the small players are likely to gain???

The second question is about the various measures taken by the govt. to prevent entry of unbranded and non IMEI no. handsets.

The third question is all about the tax benefits/tax holidays, which is provided to the power and infrastructure not to the SEZ’s. I believe that it can be provided to the mobile manufacturing units in the country, which will make them to capture the domestic market as well as help in competing in the global market also.
As expected, most of India’s sales come from low-end, high volume handsets.


·       Nokia and Samsung still hold on to the No.1 and No.2 positions, according the report
·       Chinese manufacturer G’Five is at No.3 – garnering 7.3 percent of the market share.
·       Nokia and Samsung hold 36.3 percent and 8.2 percent respectively.

·     Micromax Mobiles and Spice Mobiles are at the 4th and the 5th spot respectively. 

What has come as a surprise to us is the growth of small players like G’Five and who are now right at the heels of far bigger players like Samsung and Nokia. Other mobile giants like Motorola, LG and Sony Ericsson, who used to prominently feature in the top five lists of the yesteryears, are no longer up there.

The report also adds that multi SIM handsets are getting popular by the day in India. In fact, sales of dual SIM handsets have increased from accounting for less than 1 percent in 2009 to garnering over 38.5 percent in a span of just one year!

One question always twitting on my mind is about dual SIM sets, why big companies like Nokia and Samsung are coming so let with such interesting innovations. When it is a matter of past for the down base mobile giants.DESPITE CURBS,IMPORT OF UNBRANDED MOBILES GROWS 90%
how it is answer.......

 When your neighbor using a costly blackberry mobile set, and at the time feeling jealousy of your cheap smart phone. Represent’s the rate at which these small players are advancing, who knows if you see Micromax, G’Five or Spice ending up as the top phone makers in the country in the years to come.
What I concluded here is that their game plan is to push the envelope on providing increasingly feature-rich handsets at aggressive price-points.


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