India’s mobile handset market touched 100.9 million units in the year ended June 2009, recording a growth of 6.7%* from 94.6 million units in the previous year ended June 2008, according to IDC India.

Market intelligence firm, IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2009, September 2009 release issued today states that in terms of units shipped Nokia had the largest share of 56.8%, followed by Samsung with a 7.7% share while LG stood third with a 5.4% share in the 12-month period ended June 2009.

According to Deepak Kumar, Associate VP, Research, IDC India, "The number of emerging mobile handset vendors in the India market has grown to reach 26 in Q2 CY2009 and their contribution to overall shipments in terms of units crossed 6.3% for the first time during the twelve-month period ended June '09. This is as against only 11 emerging vendors representing a share of 1.2% of overall shipments during the previous twelve-month period (July '07 - June '08)."

“We see the market getting further crowded, especially in the lower- and mid-market segments. At the same time, an accelerated evolution of the market is at work, as the rising competition forces vendors to offer newer, richer features at attractive price points. In other words, a combo of volume and value is at work,” Deepak added.

New Vendors Make a Mark
A number of new vendors entered the India mobile handsets market in the last 12 to 18 months to carve a niche for themselves by offering feature-rich (dual SIM card, full QWERTY keyboard) and application-rich (IM enabled) mobile handsets at attractive price points. They also introduced entry-level models for the ‘price sensitive’ Indian consumer.

Figure 1: India Quarterly Mobile Handsets Market:
New Vendor Shipments Growth

Source: IDC's India Quarterly Mobile Handsets Tracker,
2Q 2009, September 2009 releasee

This development shows that even in a crowded market there is room for vendors to enter with the right product-feature-price mix.

The year 2008-09 saw the launch of high-end smart phones (such as Apple's iPhone 3G, the Blackberry Storm), latest entry-level as well as mid-market models, addressing needs of both the ‘price conscious’ and ‘value conscious’ Indian consumer. The “Marine” handset from Samsung, and the Micromax phone with a 30-day standby time were launched for the adventure enthusiast and the semi-urban and rural buyers, respectively.

According to Naveen Mishra, Lead Analyst, Communications Research, IDC India, “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.”

APRIL-JUNE 2009 QUARTER PERFORMANCE
In the quarter ended June 2009, Nokia retained the top spot with a market share* of 55.9% in terms of units shipped, followed by Samsung with 7.65%.

Smartphone shipments at 700,000 in April-June 2009 Quarter as market matures
“Overall, this trend points to the growing maturity of the India mobile handsets market. Consumers bought nearly 700,000 high end phones also referred to as smart handheld devices”, Naveen added.

*Source: IDC's India Quarterly Mobile Handsets Tracker, 2Q 2009, September 2009 release

Notes to the Editor:
IDC India uses the term “shipments” to describe the number of handsets leaving the factory premises for OEM sales or stocking by distributors and retailers. In the case of handsets imported into the country it represents the number leaving the first warehouse to OEMs, distributors and retailers.

IDC does not track the number of handsets brought on their person by passengers landing on Indian soil or ‘grey market’ handsets. These numbers are, therefore, not part of the IDC numbers reported here.

About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

About IDC India
IDC (India) Ltd., set up in 1987 is an ISO 9001:2008 company. IDC (India) Ltd., a subsidiary of CyberMedia, is regarded as the country’s most comprehensive, dependable and respected source for market intelligence and consulting in the fields of IT, telecommunications and consumer technology. With its head office at Gurgaon (near New Delhi), the company has branches in Bangalore, Chennai, and Mumbai. Additional information about IDC India's research, advisory and Go-To-Market service offerings can be found at www.idcindia.com.

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Vishaal Bhatnagar
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Executive Editor, Dataquest
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