Mobile device sales in India are forecast
to reach 231 million units in 2012, an increase of 8.5 percent over 2011 sales
of 213 million units.

The mobile handset market is expected to
show steady growth through 2015 when end user sales will surpass 322 million
units.

Global handset vendors’ share is declining
as local and Chinese manufacturers are on pace to control more than 50 percent
of the market in 2011, according to Gartner.

The Indian mobile device market is
competitive with more than 150 manufacturers selling devices to consumers.
While most of the local and Chinese manufacturers including Huawei and ZTE 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,” Gupta added.

India, accounting for approximately 12
percent 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, 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.

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 (ASP) of a mobile device is
approximately $45, with 75 percent of devices sold costing below $75.

Smartphone sales in India made up 6 percent
of total device sales in the first three quarters of 2011, and this share is
expected to increase to 8 percent in 2012.

With the growing influence of local handset
players in the low-end segment, the traditionally stronger, big global players
have had their positions weakened. At the same time, the midrange to high-end
market is getting increasingly competitive too, 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 percent of overall sales in India in 2011.

By Telecomlead.com Team
[email protected]