Krishna Baidya’s Random Musings

27 handset vendors enter Indian telecom space in a quarter ???

Posted on: October 15, 2009

Indian telecom industry has not been impacted much by global economic slowdown and many new vendors see this as opportunity to enter Indian telecom space. With the 3G auction around the corner, 27 new handset vendors have entered the market in just one quarter, according to Economic Times.

These new mobile companies are coming up with dual SIM cards, full Qwerty keyboard and at a cheaper price to attract more customers. Mobile handset sales in India recorded a 6.7 percent increase to 100.9 million in the year ended June 30, as compared to 94.6 million in the year before. Even Mindtree has entered the telecom space through its acquired company Kyocera Wireless. China Wireless Technologies’ Indian subsidiary, Coolpad Communications, is targeting Rs. 800 crore revenue in next five years in India. The company is set to invest Rs. 400 crore as capex and opex over the next three years.

According to a new research study by IDC India, the new vendors have ensured that the overall mobile handset shipments touched 6.3 percent as compared to 1.2 percent during the June 2008 quarter, when the new vendors totaled 11 percent. “The shipments from such new players who have entered the Indian market in the last 12 to 18 months grew six-fold with 6.41 million unit sales,” said Deepak Kumar, Associate Vice-President (Research) of IDC, India.

In terms of shipment, Nokia still leads the market share in India with 56.8 percent followed by Samsung with a 7.7 percent share and LG with 5.4 percent share in the 12-month period ended June 30, according to the report. ‘With the mobile handsets market in India growing in volumes , device manufacturers have started focusing on niche and emerging segments based on lifestyle profiling of buyers ,” said Naveen Mishra, an Analyst at IDC India.

“We see the market getting further crowded. At the same time, an accelerated evolution of the market is at work, as rising competition forces vendors to offer a combo of volume and value,” said Kumar.

Source: SI

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