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November 24, 2011

Indian mobile handset sales to touch 231m units in 2012: Gartner

Mobile handset market is expected to surpass 322 million units in 2015

By CBR Staff Writer

Research firm Gartner says mobile device sales in India would reach 231 million units in 2012, an increase of 8.5% over 2011 sales of 213m units.

The mobile handset market is expected grow steadily through 2015 when end user sales are expected to surpass 322 million units.

The report notes that the Indian mobile device market is very competitive with over 150 makers selling devices to consumers.

Gartner principal research analyst Anshul Gupta said that the big global brands would have to vie with Indian and Chinese brands as some of these brands are building capabilities to compete at a larger level covering broader consumer segments.

He added, "G’five, Karbonn Mobile and Micromax occupied third, fourth, and fifth positions after Nokia and Samsung in the third quarter."

India, which accounts approximately for 12% of worldwide sales, is an important market for device manufacturers. Therefore, it has also has attracted many global mobile device manufacturers.

Gupta said, "The entry of Indian mobile handset players focusing on low-end, value conscious consumers has intensified competition in the Indian mobile device market"

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He added that smartphone sales in India made up 6% of total device sales in the first three quarters of 2011 and this share is only expected to increase to 8% in 2012.

In the low-end segment, the traditionally stronger, big global players have seen their marketshares decrease, owing to the growing influence of local handset players.

The midrange to high-end market is getting increasingly competitive too, with a greater focus from global players on the Indian market and the launch of competitively priced midrange and high-end mobile devices.

The Indian mobile device market is driven by the lowest call rates in the world and dominated by low-cost devices, which account for 75% of overall sales in India in 2011, Gartner said.

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