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Indian Mobile Device Market in the Coming Days

By P. K. Chatterjee
Mumbai, Apr 29, 2008

In a recent ABI research report on mobile device market, the research group's vice president Jake Saunders states,"Operators and distributors continued to top up their inventories in 1Q 2008 after a particularly strong 4Q 2007. Year on year, 1Q 2008 was up 13.7%, but 2Q 2008 is likely to be softer than in previous years".

The report also communicates that shipment volumes in the developed markets have softened slightly due to the credit crisis, but emerging markets such as Asia-Pacific, South America, and the Middle East/Africa are delivering growth rate percentages in the mid-20s. Mobile devices have proved to be a 'lifestyle necessity', rather than a mere luxury accessory.

What does this indicate for us? Obviously, mobile penetration will further increase in our country. However, as the urban areas are nearing the saturation mark fast, the actual huge growth will take place in the semi-urban and/or rural areas.

Contextually, even in urban areas, every year a fairly large population of students and job-entrants pick up new connections. And the demand of this age-group is Value Added Service (VAS). The new generation needs something beyond SMS, caller tune varieties, even movie clips.

What type of sets'll find more sales? Obviously, in rural and parts of semi-urban areas, where the main stress will be on wireless tele-connectivity than anything else, coupled by non-availability of VAS- low-priced, sturdy handsets are expected to sell more.

However, in urban areas, especially, the young generation including the student community will prefer - E-mail, Search and Music download facilities in their mobile phones. Businessmen or corporate executives will require little more - GPS and M-commerce ability.

Who are the prominent vendors? According to the ABI Research report, "The market is still very much dominated by the 'Big 5' (Nokia, Samsung, LG, Motorola and Sony Ericsson) manufacturers, but an innovative tier of manufacturers (RIM, HTC, Apple) has been stirring up interest in smartphones, and will soon be joined by a new class of mobile device: Mobile Internet Devices (MIDs). MIDs made their debut last year, but vendors such as Lenovo, Aigo, and Asus are expected to drive growth rapidly."

In Indian context, however, realizing all these growth potentials is depending on highly efficient, effective and economic VAS. VAS creators have to be active to supply most relevant contents to the operators. They have to stress on components, such as financial services, mobile-commerce elements and money transfer opportunities. Contextually, localization of content is also very important. In other words, sell of the devices will largely depend on overall quality of services available. Above all, creating awareness among the potential users will play the major role.


Related Links

Samsung Adopts Brand New Strategy in Mobile Space

High-end Mobile Phones Won't Replace Laptops
What s your view on the Mobile Market in India?

     
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