Smart phones sale in India grows at 150% in 2010; replacement market to grow 90% by 2017

The mobile handset market in India is driven by two major factors including mobile
subscriber base and handset replacement rate.

The handset replacement rate in India is expected to increase to more than 90
percent by 2017.

Emerging Indian and Chinese handset brands, such as Micromax, Karbonn, Lava,
Maxx, G’Five, etc. are fast gaining market share, giving competition to
erstwhile dominant multinational brands like Nokia, Samsung, LG etc.

Falling manufacturing costs and increasing competition have resulted in a steep
decline in the price of handsets and other mobility devices.

With the increasing adoption of mobile broadband and data intensive
applications, the end users in India are opting to go for Smartphones over
other legacy handsets.

Smartphones sales stood at 7.7 million out of a total of 172.1 million handset
shipments in 2010 recording a 150 percent year-on-year growth, according to Frost & Sullivan.

Smartphones are gaining market traction. While smartphone accounted for 4.5
percent of total handset shipments in 2010, its share in the pie is expected to
increase to 6.8 percent by 2011 and touch 30 percent by 2017.

While the overall handset market is expected to record a CAGR of 11 percent to
reach 354 million by 2017, smartphones are expected to outgrow the market and
record a CAGR of 45 percent to reach 103 million units accounting for 30
percent of the handsets market.

By Team
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