Mobile device sales in India are forecast to reach 231mn units in 2012, an increase of 8.5% over 2011 sales of 213mn units, according to Gartner, Inc. The mobile handset market is expected to show steady growth through 2015 when end user sales will surpass 322mn units.
The Indian mobile device market is very competitive with more than 150 manufacturers selling devices to consumers. While most of the local and Chinese manufacturers have remained focused on low cost devices, some manufacturers have built capabilities to deliver smartphone devices and even ventured into other global markets.
“The big global brands will continue to face competition from local and Chinese brands as some of these brands are building capabilities to compete at a larger level covering broader consumer segments,” said Anshul Gupta, principal research analyst at Gartner. “G’five, Karbonn Mobile and Micromax occupied third, fourth, and fifth positions after Nokia and Samsung in the third quarter. “
India, accounting for approximately 12% of worldwide sales, is an important market for device manufacturers, with aspirations to grow their global market share. Due to its sheer size and open market (mobile devices being sold independently of cellular connection), it has attracted many global mobile device manufacturers. The market is also supported by many local manufacturers. Mobile manufacturers also are competing against many brands in the black markets who areselling without invoices.
“The entry of Indian mobile handset players focusing on low-end, value conscious consumers has intensified competition in the Indian mobile device market. he average selling price (ASP) of a mobile device is approximately $45, with 75% of devices sold costing below $75,” said Gupta.” Smartphone sales in India made up 6% of total device sales in the first three quarters of 2011, and this share is expected to increase to 8% in 2012”