India mobile handset sales to reach 138.6 million units in 2010, says Gartner
Mobile handset sales in India are forecast to reach 138.6 million units in 2010, an increase of 18.5% over 2009's 117 million units, according to Gartner. India's handset market is expected to show steady growth through 2014 when end-user sales surpass 206 million units.
India's handset market is a very dynamic and crowded market. Intense competition has led to very low call rates and low-cost devices from multiple manufacturers and vendors.
"Established global device manufacturers are losing ground due to fierce competition from local and China-based manufacturers in the low-cost segment," said Anshul Gupta, principal research analyst at Gartner. "Price remains the main criteria when buying any consumer electronics device in India, including a mobile device. Carrier strategies, lower tariffs and/or 3G data plans will continue to shape the mobile device market in India."
India, representing approximately 10% of worldwide sales, is an important market for handset players with aspirations to grow their global market share. Due to its sheer size and open market (handsets being sold independently of carrier service plans), there are currently more than 50 handset brands sold in the country.
"The entry of Indian mobile handset players focusing on low-end, value conscious consumers has intensified competition in the Indian mobile device market. A large volume of mobile device sales in India come from the low-end device segment. The average selling price (ASP) of a mobile device is approximately US$52, with 85% of devices sold costing below US$100," said Gupta.
With the growing influence of local handset vendors in the low-end segment, the bigger global players are losing ground. Meanwhile, the mid-range to high-end market has become increasingly competitive as well, with a greater focus from global players on the India market and the launch of competitively priced handsets.
The India market is highly voice-centric with just 10% of carriers' revenues coming from data services, of which short message service accounted for 85%. Less than 2% of overall revenues come from data access.
Approximately 95% of existing subscribers are on prepaid schemes, and 98% of new subscribers go for prepaid plans.
Despite 3G services have yet to go online, 3G handsets are expected to account for a 16.7% share of total sales in 2010, up from 9.2% in 2009. By 2014, 3G handsets are projected to represent a 69% share.
Smartphone sales in India made up 5.2% of total sales in the first quarter of 2010, and will rise to 18% in 2014.
"Cellular phone penetration in India stood at 45% in 2009, and the market is entering into a second phase of growth, with replacement sales increasing from 45% in 2009 to 50% of total sales in 2010. Moves to high-speed 3G networks is bringing in more challenges in terms of innovation and keeping up with fast changing consumer demand. Shortening product life cycle times and declining sales of voice-centric devices will bring changes to the market during the next five years," said Gupta.
India's handset market is a very dynamic and crowded market. Intense competition has led to very low call rates and low-cost devices from multiple manufacturers and vendors.
"Established global device manufacturers are losing ground due to fierce competition from local and China-based manufacturers in the low-cost segment," said Anshul Gupta, principal research analyst at Gartner. "Price remains the main criteria when buying any consumer electronics device in India, including a mobile device. Carrier strategies, lower tariffs and/or 3G data plans will continue to shape the mobile device market in India."
India, representing approximately 10% of worldwide sales, is an important market for handset players with aspirations to grow their global market share. Due to its sheer size and open market (handsets being sold independently of carrier service plans), there are currently more than 50 handset brands sold in the country.
"The entry of Indian mobile handset players focusing on low-end, value conscious consumers has intensified competition in the Indian mobile device market. A large volume of mobile device sales in India come from the low-end device segment. The average selling price (ASP) of a mobile device is approximately US$52, with 85% of devices sold costing below US$100," said Gupta.
With the growing influence of local handset vendors in the low-end segment, the bigger global players are losing ground. Meanwhile, the mid-range to high-end market has become increasingly competitive as well, with a greater focus from global players on the India market and the launch of competitively priced handsets.
The India market is highly voice-centric with just 10% of carriers' revenues coming from data services, of which short message service accounted for 85%. Less than 2% of overall revenues come from data access.
Approximately 95% of existing subscribers are on prepaid schemes, and 98% of new subscribers go for prepaid plans.
Despite 3G services have yet to go online, 3G handsets are expected to account for a 16.7% share of total sales in 2010, up from 9.2% in 2009. By 2014, 3G handsets are projected to represent a 69% share.
Smartphone sales in India made up 5.2% of total sales in the first quarter of 2010, and will rise to 18% in 2014.
"Cellular phone penetration in India stood at 45% in 2009, and the market is entering into a second phase of growth, with replacement sales increasing from 45% in 2009 to 50% of total sales in 2010. Moves to high-speed 3G networks is bringing in more challenges in terms of innovation and keeping up with fast changing consumer demand. Shortening product life cycle times and declining sales of voice-centric devices will bring changes to the market during the next five years," said Gupta.
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