The sale of mobile devices in India is set to reach 231 million units in 2012, an increase of 8.5% compared with this year’s total of 213 million units, according to a study by Gartner Inc.
According to Gartner, an information technology research and advisory company, the Indian mobile handset market is expected to show steady growth through 2015, when end user sales will surpass 322 million 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 study said.
“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.
In the third quarter, G’five, Karbonn Mobile and Micromax ranked third, fourth, and fifth after Nokia (NOK) and Samsung, according to the study.
India, which accounts for about 12% of worldwide sales, is an important market for device manufacturers, with aspirations to increase 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 are selling without invoices, Gartner said.
“The entry of Indian mobile handset players focusing on low-end, value conscious consumers has intensified competition in the Indian mobile device market. The average selling price of a mobile device is approximately $45, with 75% of devices sold costing below $75,” Gupta said. “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.”
The study also stated that with the growing influence of local handset players in the low-end segment, the traditionally stronger, big global players have seen their positions weaken. At the same time, the midrange to high-end market is getting increasingly competitive, with a greater focus from global players on the Indian market, and the launch of competitively priced midrange and high-end mobile devices.
The Indian mobile device market is driven by the lowest call rates in the world and dominated by low-cost devices, which account for 75% of overall sales in India in 2011, the release said.
