Local handset makers hike market share by 15%

CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)

14 December 2009  

The domestic mobile handset market, which has been a happy playground for global players like Nokia and Samsung, has begun to see sizeable home-bred presence.

With the government’s crackdown on Chinese handsets, Indian brands like Karbonn, Lava, Micromax and Movil have usurped the vacated space and increased their share of the market to 15 per cent, which is projected to rise to 25-30 per cent by the next three-five years.

Most of the home brands are designed in India, manufactured in China and at Rs 1,700-6,500 compete with Chinese handsets. Besides, the Indian brands hold the upper hand because they come equipped with the 15-digit International Mobile Equipment Identity (IMEI) number, whose absence was the stick used to beat the Chinese brands.

The IMEI number helps in tracking or blocking a mobile phone. Handsets without this number are perceived as a security risk. The Indian ones also offer more features for the same price, and a wider distribution and after-sales network.

The Indian mobile handset market grew by 23.6 per cent to 122 million in calendar year (CY) 2008, up from 98.7 million in CY 2007, according to Gartner. Nokia is market leader with 58 per cent share, Samsung comes second with 15 per cent.