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India's Mobile Handset Market Touches 100.9 Million Units
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The number of emerging mobile handset vendors in the India market has grown to reach 26 in Q2 CY2009.
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Monday, October 12, 2009:
India's mobile handset market touched 100.9 million units in the year ended June 2009, recording a growth of 6.7 per cent from 94.6 million units in the previous year ended June 2008, according to IDC India. In terms of units shipped Nokia had the largest share of 56.8 per cent, followed by Samsung with a 7.7 per cent share while LG stood third with a 5.4 per cent share during the period.
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According to Deepak Kumar, associate vice president, research, IDC India, "The number of emerging mobile handset vendors in the India market has grown to reach 26 in Q2 CY2009 and their contribution to overall shipments in terms of units crossed 6.3 per cent for the first time during the 12-month period ended June '09. This is as against only 11 emerging vendors representing a share of 1.2 per cent of overall shipments during the previous 12-month period (July '07-June '08)."
"We see the market getting further crowded, especially in the lower- and mid-market segments. At the same time, an accelerated evolution of the market is at work, as the rising competition forces vendors to offer newer, richer features at attractive price points. In other words, a combo of volume and value is at work," Deepak added.
A number of new vendors entered the India mobile handsets market in the last 12 to 18 months to carve a niche for themselves by offering feature-rich (dual SIM card, full QWERTY keyboard) and application-rich (IM enabled) mobile handsets at attractive price points. They also introduced entry-level models for the 'price sensitive' Indian consumer. This development shows that even in a crowded market there is room for vendors to enter with the right product-feature-price mix, as per IDC.
The year 2008-09 saw the launch of high-end smartphones (such as Apple's iPhone 3G, the Blackberry Storm), latest entry-level as well as mid-market models, addressing needs of both the 'price conscious' and 'value conscious' Indian consumer. The 'Marine' handset from Samsung, and the Micromax phone with a 30-day standby time were launched for the adventure enthusiast and the semi-urban and rural buyers, respectively.
According to Naveen Mishra, lead analyst, communications research, IDC India, "With the mobile handsets market in India growing in volumes, device manufacturers have started focussing on niche and emerging segments based on lifestyle profiling of buyers."
"Overall, this trend points to the growing maturity of the India mobile handsets market. Consumers bought nearly 700,000 high-end phones (in the quarter ended June 2009) also referred to as smart handheld devices," Naveen added.
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