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INTRODUCTUION INDUSTRY ANALYSIS

INDIAN MOBILE PHONE INDUSTRY

India is the second largest mobile handset market in the world after China and is poised to become an even larger market with unit shipment of INR 208.4 million in 2016 at a compound annual growth rate (CAGR) of 11.8 per cent from 2010 to 2016. The mature Indian mobile consumers increasing preference for high-end handsets and the younger demographics desire to use mobile Web 2.0 technologies could see the market revenues soar from INR 255.91 billion in 2010 to INR 350.05 billion in 2016. With end users need for converged devices and original equipment manufacturers (OEMs) accelerated adoption of open-source operating systems (OSs) such as Android and Symbian, the mobile handsetSmartphone combination is emerging as the future growth engine of the telecom industry. In 2011, the mobile market is likely to witness almost a three-fold increase in the number of participants. This is expected to result in a price war and a consequent squeezing of profit margins. In 2010, the decline in the average selling price (ASP) of mobiles by 11.3 per cent opened up possibilities of market consolidation. The intense competition is also compelling handset manufacturers to enhance the application ecosystem and invent products. While market entrants are likely to be daunted by the sheer numbers in the market, they will identify abundant opportunities in the rural and semi-rural market for the next three to four years. For the mobile handset market, the rural market offers exciting prospects due to its significant uptake of feature phones, says the analyst of this research. The rural and semi-rural markets accounted for 65 per cent of sales for most Indian manufacturers in FY2010. In the case of smart phones, most existing global brands are concentrating on building application stores and improving service quality to offer an attractive value proposition and strengthen their market position. Entrants will be particularly focused on branding, as a Smartphone is a high-involvement product and the brand is a vital purchase criterion. While Smartphone consumers are also price conscious, it will not be possible for manufacturers to subsidies due to the operation of an open market rather than an operatorleveraged distribution model. Moreover, 70 per cent of the Indian population consumes only voice services, and mobile data services have not yet achieved large-scale popularity. However, this is set to change with the reduction of mobile Internet charges by telecom service providers and the introduction of 3G in India. The market is also witnessing the influx of a new class of affordable handsets, which are classified as Smartphone-like devices, with touch screens and other Smartphone features. In the next five years, the revenue share of smart phones in the mobile handset market is expected to rise steadily, as an increasing number of participants are targeting this space for higher margins, notes the analyst. This trend is likely to persist, as numerous handset manufacturers are strategizing to deploy more Smartphone models in their portfolio. In the Smartphone market, applications will be a key differentiating factor. The mid-tier price

bracket is likely to experience high uptake and hence, manufacturers should strategize on deploying more models in this category. TRENDS OF THE INDUSTRY The Indian mobile handset market is expected to continue its upward trajectory if a recent report by Frost and Sullivan is to be believed. The report continues to portray the happy sentiments in the mobile industry in the country. India has reached the coveted position of the second largest mobile handset market in the world after China. And it is expected to become even bigger with 208.4 million phones being shipped by 2016 at a CAGR of 11.4% between the periods of 2010 2016. This is the reason the mobile handset market expects the revenue to rise from US $255 billion to US $350 billion. The Smartphone market is expected to grow tenfold to 30 Million units by 2016 from just about Rs 2.9 million units currently. The fact that more than 70% of the Indian population still consumes only voice services. But with the onset of 3G and cheaper data usage options, this is expected to change in the near future.

THE PLAYERS PRESENT IN THE MOBILE PHONE MANUFACTURING INDUSTRY INCLUDE: The mobile handset manufacturers in India are:
Accord Ace Acer Airfone AirNet Ajanta Amplicom Apple Aqua Aroma Blackberry Bleu Boss Bossh Brado Byond Tech Celkon Colors Dell DigiBee Fly Fortune Frio Fujezone G-Fone G7 Gee Pee Grapes Hansum Hi-Tech HTC Huawei I-Tel I4 I5 I cube Intex INQ IO Sound ION Joy JXD Karbonn Kenson Lava Lemon LG Lima Longtel Magicon Mark son Maxx Melbon Micromax Motorola Movil MTS Munoth Murphy MVL Nokia Olyne Onida Orpat OSCAR Pagaria Paxma Pine Rage Ray Reliance Rey sol Sony Ericsson Spark Sun sky T-Series Tekshiv Wespro Wynncom Xcite Zen

UshaLexus Riviera Videocon Sagetel Viva Samsung Vodafone Simoco Voice Sky VOX

MARKET SHARE OF MAJOR PLAYER OF INDIAN MOBILE PHONE INDUSTRY

Handset market in India is now highly competitive. New players are entering the market with rich features, low cost gadgets and dual SIM features. Still the largest handset manufacturer Nokia has grabbed most of the market share (56.8%) which is followed by the Korean companies Samsung (7.7%) and LG (5.4%) last year. However Micromax a new entrant is competing with LG to gain third position in the handset market. Talking about the statistics, about 26 new players entered the market in the past few months itself. The Indian brands gained 14% market share in the handset industry, in particular in the mid and low end consumer market. Smart phones are gaining momentum and it is assumed to rise by 14% within 2-3 years. The GSM handsets are on higher demand compared to CDMA.

REVIEW OF LITERATURE
A brief literature would be of immense help to the researcher in gaining insight into selected problem. The researcher would gain good background knowledge of the problem by reviewing certain studies. A reference to these entire studies will be related in the contest of the shaping the present study.