India Mobile Handset Revenues drop 5% to Rs 31,215 Cr in 2011-12

Mixed bag for Top 10 players:

  • Samsung, Karbonn, HTC and Huawei record growth
  • Nokia, Micromax, Blackberry, Spice, LG and G’Five drop revenues

Bangalore New Delhi, July 9, 2012: The Indian mobile handset market saw a drop of 5% in revenues in the just concluded FY 2011-12. The revenues dropped to Rs 31,215 crore from Rs 33,031 crore a year back. The annual survey by Indian Telecom industry by CyberMedia group’s flagship journal for the telecom industry Voice&Data attributes this drop two de-growth in the feature phones sales as well as lower average selling values (ASVs).

The 17th annual study ‘V&D 100’ surveyed over 30 mobile handset firms–both multi-national and Indian–selling feature phones, multimedia phones, enterprise phones and smartphones in India.

The disappearing act done by the homegrown handset makers was a big surprise of the year Barring Karbonn and Lava, none of the Indian handset players could face intense competition. Their main stay-feature phones-saw a negative growth while the entry level smartphones of various companies saw a marginal rise.

“Indian mobile phone brands that had hoped to make a mark by sourcing Chinese handsets and selling them only on the price plank were in for a big surprise. These players will have to quickly rethink their product, marketing and service strategy afresh to put their house in order,” said Ibrahim Ahmad, Group Editor, Voice&Data.

Top 10 India Mobile Handset Vendors: Voice&Data 100 survey 2012
Revenue in Rs Crore
Rank 2011-12 2010-11 Change Mkt Share in %age
1 Nokia 11925 12929 -8 38.2
2 Samsung 7891 5720 38 25.3
3 Micromax 1978.0 2289 -14 6.3
4 Blackberry 1460.0 1950 -25 4.7
5 Karbonn 1327.0 1004 32 4.3
6 HTC 923.0 450 105 3.0
7 Spice 790.0 920 -14 2.5
8 LG 780.0 1834 -57 2.5
9 Huawei 750.0 626 20 2.4
10 G’Five 670.0 1326 -49 2.1
Total 31,215.0 33,031.0 -5 100.0

Source: Cybermedia’s Voice&Data Annual survey of the industry 2012

Nokia remained the No.1 player in the handset business in FY 2011-12 with revenue of Rs 11,925 crore, despite 8% drop over Rs 12,929 crore revenues posted in FY11. The Finnish company lost market share in smartphones and multi-media segment to Samsung, HTC and Apple, among others.

Nokia that caters to all mobile segments saw its absence in the Android ecosystem dent its performance. Nokia however, made a head way in the dual SIM phones category but lost out in the smartphone market. Nokia ended FY12, with a market share of 38.2%

The Korean giant Samsung, grew its revenues 38% to Rs 7,891 crore at the No. 2 spot with a market share of 25.3%. Voice&Data analysts attribute Samsung’s success to its rich product portfolio based on Windows, Android and Bada operating systems.

Samsung’s Galaxy Note, a hybrid between smartphone and tablet was a trail blazer selling 40,000 units each month since launch in late 2011.

“As consumers look for applications beyond voice and SMS the market will see fight for high end feature phones and smart phones intensify further. Consumers can also look forward to steeper price drops and more features in the same price.” according to Ahmad.

Homegrown handset company Micromax with revenues of Rs 1,978 crore ranked No 3 among Voice&Data100 Top10 mobile handset brands recorded a 13% negative growth. Micromax had a market share of 6.3%.

Other Indian player to post revenues of over Rs 1000 crore was Karbonn. The company grew its revenues 32% to emerge as the No 5 player with a market share of 4.3%.

Among the global companies in the V&D100 Top 10 players, Canadian BlackBerry maker Research In Motion dropped the most–25%–to post revenues of Rs 1,460 crore At No 4 Blackberry had a market share of 4.7% on the back of entry level smart phones last year.

Taiwanese handset maker HTC saw maximum growth-105%–among all the brands surveyed by Voice&Data. HTC’s revenue more than doubled to Rs 923 crore, from Rs 450 crore, to inch a 3% market share.

The other key players in the Top 10 list include spice Telecom (Rs 790 crore), LG (Rs 780 crore), Huawei (Rs 760 crore) and G’Five (Rs 670 crore)

About V&D100
V&D100 is the most comprehensive annual survey of the Indian equipment industries and telecom services. It is the most trusted and widely used survey for those seeking authentic information on Indian communications. It is also the most comprehensive, as it covers a wide range of segments and is the only ‘single source’ of such diverse information.

The V&D100 (volume II) for 2011-12 survey will focus on telecom services and service providers, and is slated for release in July 2012.

For more details please visit: www.voicenData.com