India mobile handset sales to reach 251 million units in 2013: Gartner

11 Oct 2012

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Mobile device sales in India are forecast to reach 251 million units in 2013, a 13.5-per cent rise over 2012 sales of 221 million units, predicts technology research firm Gartner.

According to Gartner, the mobile handset market is expected to show steady growth through 2016 with end-user sales surpassing 326 million units.

''The Indian mobile phone market is competitive with more than 150 device manufacturers selling devices to consumers. Most of these manufacturers remain focused on the low-cost feature phone market, which still constitutes over 91 per cent of overall mobile phone sales, offering a huge market to compete in,'' said Anshul Gupta, principal research analyst at Gartner.

''The increase in share of smartphone device sales, declining sales to first time buyers and the continuous focus of global manufacturers on the low cost feature phone market, has put many of the 150 plus local and Chinese device manufacturers under survival mode. Many of them are already struggling to maintain share in the growing market,'' Gupta added.

Some of these local and Chinese manufacturers are building capabilities, distribution and brand to compete with the big global players as they prepare to compete at a larger level covering broader consumer segments.

Manufacturers such as ZTE, Micromax, Karbonn Mobile, Huawei ranked sixth, seventh and twelfth in the Indian smartphone market in 1H12 and are constantly expanding their smartphone portfolio to compete at a larger level with bigger global manufacturers Samsung and Nokia, who hold the first and second position respectively.

Samsung's brand strength and wide device portfolio has allowed it to take advantage of the high growth opportunities in the Indian market. Samsung's share has risen from 15 per cent in the first quarter of 2011 to 49.8 per cent in 2Q12. If Samsung continues this pace of growth, it could end 2012 with more than a 60 per cent market share - exactly where Nokia was at the start of 2011.

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