This report provides key takeaways, competitor profiling and trends of both market segments. In this research, analysts thoroughly examine the following markets: mobile {ultra low-cost mobile handsets (ULCMHs), low-to medium-cost mobile handsets (LCMHs) and high-cost mobile handsets (HCMH)} and smartphones.

Market Overview

Dynamic Ecosystem of Mobile Handset and Smartphones to Yield Unit Shipment of INR 208.4 Million Mobile Handsets and INR 29.4 Million Smartphones in 2016

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 INR 208.4 million in 2016 at a compound annual growth rate (CAGR) of 11.8 per cent from 2010 to 2016. The mature Indian mobile consumers’ increasing preference for high-end handsets and the younger demographics’ desire to use mobile Web 2.0 technologies could see the market revenues soar from INR 255.91 billion in 2010 to INR 350.05 billion in 2016. With 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.

In 2011, the mobile market is likely to witness almost a three-fold increase in the number of participants. This is expected to 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 opened up possibilities of market consolidation. The intense competition is also compelling handset manufacturers to enhance the application ecosystem and invent products. While market entrants are likely to be daunted by the sheer numbers in the market, they will identify abundant opportunities in the rural and semi-rural market for the next three to four years. “For the mobile handset market, the rural market offers exciting prospects due to its significant uptake of feature phones,” says the analyst of this research. “The rural and semi-rural markets accounted for 65 per cent of sales for most Indian manufacturers in FY2010.”

In the case of smartphones, most existing global brands are concentrating on building application stores and improving service quality to offer an attractive value proposition and strengthen their market position. Entrants will be particularly focused on branding, as a smartphone is a high-involvement product and the brand is a vital purchase criterion. While smartphone consumers are also price conscious, it will not be possible for manufacturers to subsidise due to the operation of an open market rather than an operator-leveraged distribution model. Moreover, 70 per cent of the Indian population consumes only voice services, and mobile data services have not yet achieved large-scale popularity. However, this is set to change with the reduction of mobile Internet charges by telecom service providers and the introduction of 3G in India. The market is also witnessing the influx of a new class of affordable handsets, which are classified as ‘smartphone-like’ devices, with touch screens and other smartphone features.

“In the next five years, the revenue share of smartphones in the mobile handset market is expected to rise steadily, as an increasing number of participants are targeting this space for higher margins,” notes the analyst. “This trend is likely to persist, as numerous handset manufacturers are strategizing to deploy more smartphone models in their portfolio.” In the smartphone market, applications will be a key differentiating factor. The mid-tier price bracket is likely to experience high uptake and hence, manufacturers should strategize on deploying more models in this category.

Market Sectors

Analysts thoroughly examine the following market sectors in this research:

Mobile

•     Ultra Low-cost Mobile Handsets (ULCMHs)

•     Low-to Medium-cost Mobile Handsets (LCMHs)

•     High-cost Mobile Handsets (HCMH)

TABLE OF CONTENTS

1. Executive Summary


2. Definition and Research Methodology
 

3. Mobile Market

   3.1 Market Overview

   3.2 Mobile Handset Ecosystem

   3.3 Product Segmentation

   3.4 Market Engineering Measurements

   3.5 Market Drivers

   3.6 Market Restraints

   3.7 Unit Shipment Forecasts

   3.8 Revenue Forecasts

   3.9 Growth of Rural and Urban Markets

   3.10 Unit Shipment Forecasts for the Rural and Urban Markets

   3.11 GSM and CDMA Breakup

   3.12 Multi-SIM Mobile Handset Market

   3.13 Replacement Market

   3.14 Grey Handset Market

   3.15 3G Mobile Market Overview
 

4. Competitor Profiling

   4.1 Market Share Analysis

   4.2 International versus Indian Brands

   4.3 Business Models for Indian Manufacturers

   4.4 Competitor Profiling-Local Handset Manufacturers


5. Trends-Mobile Market

   5.1 Pricing

   5.2 Distribution Models

   5.3 Feature Phone Chipsets

   5.4 Mobile Handset Features

   5.5 Operating Systems

   5.6 Mobile Applications


6. Key Takeaways


7. Smartphone Market

   7.1 Market Overview

   7.2 Value Chain

   7.3 Application Development Community

   7.4 Technology Adoption


8. Smartphone Market Analysis

   8.1 Market Engineering Measurements

   8.2 Market Drivers

   8.3 Market Restraints

   8.4 Restraint Analysis Reasons for Low Cost of Chinese Devices

   8.5 Force Field Analysis

   8.6 Impact of Force Field Analysis for Different Participants

   8.7 Unit Shipment Forecasts

   8.8 Revenue Forecasts

   8.9 Distribution Models (Open Market and Operator Leveraged)

   8.10 7Price Analysis
 

9. Competitor Profiling

   9.1 Market Share

   9.2 Strategic Roadmaps

   9.3 Profiles of Participants


10. Smartphone-like Devices

   10.1 Classification of Wireless Devices

   10.2 Smartphone-like Devices Market

   10.3 Smartphone-like Devices Comparison
 

11. Smartphone Chipset Market

   11.1 Qualcomm

   11.2 MediaTek

   11.3 Texas Instruments and Broadcom
 

12. Smartphone Operating System

   12.1 Types of Smartphone OS

   12.2 Business Models around Operating Systems

   12.3 Profiles of Operating Systems

   12.4 Operating System Analysis

   12.5 Operating System-Perception Mapping


13. Trends in Application Development

   13.1 Application/Content Development by Global OEMs

   13.2 Mobile Applications Market

   13.3 Mobile Applications Market-Revenue Models


14. Key Takeaways

15. Appendix

LIST OF FIGURES

    Mobile Handset Market: Market Drivers Ranked in Order of Impact (India), FY2011-FY2016
    Mobile Handset Market: Market Restraints Ranked in Order of Impact (India), FY2011-FY2016
    Mobile Handset Market: Summary (India), FY2010
    Mobile Handset Market: Classification of Portfolio (India), FY2010
    Mobile Handset Market: Reasons for Declining Price (India), FY2010
    Mobile Handset Market: Average Selling Price Trend (India), FY2009-FY2011
    Mobile Handset Market: Channel Margin for Global and Indian Brands (India), FY2010
    Mobile Handset Market: Reasons for Declining Average Selling Price (India), FY2010
    Mobile Handset Market: Operating Systems Used by OEMs on their Feature Phones (India), FY2010
    Smartphone Market: Market Drivers Ranked in Order of Impact (India), FY2011-FY2016
    Smartphone Market: Market Restraints Ranked in Order of Impact (India), FY2011-FY2016
    Mobile Handset Market: Wireless Device Classification (India), FY2010
    Smartphone Market: Operating System-Perception Mapping (India), FY2010

LIST OF CHARTS

    Mobile Handset Market: Unit Shipment Forecasts (India), FY2009-FY2016
    Mobile Handset Market: Revenue Forecasts (India), FY2009-FY2016
    Mobile Handset Market: Rural and Urban Markets Breakup (India), FY2010
    Mobile Handset Market: Penetration Rate in Rural and Urban Markets (India), FY2006-FY2010
    Mobile Handset Market: Unit Shipment Forecasts for the Rural and Urban Markets (India), FY2009-FY2016
    Mobile Handset Market: Percent of the Mobile Market for GSM and CDMA (India), FY2010
    Mobile Handset Market: Percent of Revenues by SIM Type (India), FY2010
    Mobile Market: Replacement Market Forecasts (India), FY2009-FY2016
    Mobile Handset Market: Percent of Unit Shipment (India), FY2010
    3G Market: 3G Subscriber Forecasts (India), FY2010-FY2016
    Mobile Handset Market: Company Market Share by Unit Shipment (India), FY2010
    Mobile Handset Market: International versus National Brands (India), FY2010
    Mobile Handset Market: Effect of Declining Price of Smartphones (India), FY2010-FY2011
    Mobile Handset Market: Reasons for Declining Price (India), FY2010
    Mobile Handset Market: Chipsets Used by Indian Manufacturers (India), FY2010
    Consumer Mobile Applications Market: Percent of Revenues by Delivery Channels (India), FY2010
    Mobile Handset Market: Stages of Technology Adoption (India), FY2010
    Smartphone Market: Market Engineering Measurements (India), FY2010
    Smartphone Market: Force Field Analysis of Participants (India), FY2010
    Smartphone Market: Unit Shipment Forecasts (India), FY2009-FY2016
    Smartphone Market: Revenue Forecasts (India), FY2009-FY2016
    Smartphone Market: Unit Shipment Forecasts of Smartphones and Feature Phones (India), FY2009-FY2016
    Smartphone Market: Revenue Forecasts of Smartphones and Feature Phones (India), FY2009-FY2016
    Smartphone Market: Mobile Device Revenue Breakup Analysis (India), FY2010
    Smartphone Market: Average Selling Price (India), FY2009-FY2010
    Smartphone Market: Factors Determining Price (India), FY2009-FY2010
    Smartphone Market: Chipset and BOM Cost Analysis (India), FY2010
    Smartphone Market: Company Market Share by Unit Shipment (India), FY2010
    Smartphone Market: Operating System-Perception Mapping (India), FY2010
    Smartphone Market: Number of Applications on Each Store (World), CY2010
    Smartphone Market: Number of Applications Added Per Month (World), CY2010
    Smartphone Market: Share of Free Apps in Application Stores (World), CY2010
    Smartphone Market: ASP of Downloaded Applications (World), CY2010
    Smartphone Market: Total Downloads (World), CY2010
    Smartphone Market: Revenue Generated through Applications (World), CY2010
    Mobile Handset Market: ASP (India), FY2010
    Mobile Handset Market: Monthly Unit Sales (India), FY2010
    Mobile Handset Market: Number of Retailers (India), FY2010
    Mobile Handset Market: Number of Service Centers (India), FY2010