Indian mobile handset market to generate Rs350 billion in 2016: Frost & Sullivan
21 Mar 2011
Indian mobile handset revenues could soar to Rs350.04 billion in 2016 from Rs255.91 billion in 2010, considering mobile consumers' rising preference for high-end handsets and desire to use mobile Web 2.0 technologies, an analysis from Frost & Sullivan reveals.
India is the second largest mobile handset market in the world after China and is poised to become an even larger market with unit shipment of 208.4 million in 2016 at a compound annual growth rate (CAGR) of 11.8 per cent from 2010 to 2016.
According to the report, The Mobile Handset and Smartphone Market in India, the smartphone market, which had a unit shipment of 2.9 million in 2010, will grow to 29.4 million in 2016.
With the end users' need for converged devices and original equipment manufacturers' (OEMs') accelerated adoption of open-source operating systems (OSs) such as Android and Symbian, the mobile handset-smartphone combination is emerging as the future growth engine of the telecom industry, says Frost & Sullivan.
The study reveals that the mobile market is likely to witness almost a three-fold increase in the number of participants in 2011, which will result in a price war and a consequent squeezing of profit margins.
In 2010, the decline in the average selling price (ASP) of mobiles by 11.3 per cent had opened up possibilities of market consolidation.
