Mobile handset revenues drop 5% to Rs 31k cr

10 Jul,2012

By A Correspondent


The Indian mobile handset market saw a drop of 5 per cent in revenues in FY 2011-12. The revenues dropped to Rs31,215 crore from Rs33,031 crore a year back. The annual survey of the Indian telecom industry by CyberMedia Group’s flagship journal for the telecom industry – Voice&Data attributes this drop to 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 by the home-grown 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 10IndiaMobileHandset Vendors: Voice&Data 100 survey 2012
Revenue in Rs Crore
Rank 2011-12 2010-11 Change Mkt Share in %
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 number 1 player in the handset business in FY 2011-12 with revenue of Rs11,925 crore, despite a 8 per cent  drop. The Finnish company lost market share in smartphones and multi-media segment to Samsung, HTC and Apple, among others.


Nokia felt its absence in the Android ecosystem dent its performance, it made a head way in the dual SIM phones category but lost out in the smartphone market and ended the year with a market share of 38.2 per cent.


The Korean giant Samsung, grew its revenues 38 per cent to Rs7,891 crore at the second spot with a market share of 25.3 per cent. 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,” said Mr Ahmad.


Homegrown handset company Micromax with revenues of Rs1,978 crore ranked third among Voice&Data100 Top10 mobile handset brands, recording a 13 per cent negative growth and a market share of 6.3 per cent.


The only other Indian player to post revenues of over Rs1,000 crore was Karbonn. The company grew its revenues 32 per cent to emerge as the No 5 player with a market share of 4.3 per cent.


Among the global companies in the V&D100 Top 10 players, BlackBerry maker Research In Motion dropped the most- 25 per cent – to post revenues of Rs1,460 crore. At No 4, Blackberry had a market share of 4.7 per cent on the back of entry level smart phones last year.


Taiwanese handset maker HTC saw maximum growth among all the brands surveyed by Voice&Data. HTC’s revenue more than doubled to Rs923 crore to inch a 3 per cent market share.


The other key players in the Top 10 list include Spice Telecom (Rs790 crore), LG (Rs780 crore), Huawei (Rs760 crore) and G’Five (Rs670 crore),


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