Feature phones register negative growth,Nokia,Samsung still largest vendors

Smartphone segment has grown 152 pct y-o-y in comparison to a -0.8 pct growth for feature phones.

Written by Nandagopal Rajan | New Delhi | Published: November 19, 2013 5:46:28 pm

Both Nokia and Samsung have managed to hang on to their top slots in the overall mobile and smartphones segments respectively,according to CMR’s India Mobile Handsets Market Review 3Q 2013 released on Tuesday.

India registered 62.9 million mobile handset shipments for the period July-September (3Q) 2013,of which 11.1 million units were smartphones. The smartphone segment has grown 152 per cent year-over-year in comparison to a -0.8 per cent growth for feature phones. Smartphones now account for 17.6 per cent of the total mobile handset shipments.

CMR Telecoms Practice’s Lead Analyst Faisal Kawoosa said: “We have been saying the way forward is smartphones. Vendors can expect to see large opportunities in the upgrades market where many featurephone users will upgrade to a smartphone. It may also so happen that new smartphone purchases register lower volumes vis-à-vis upgrades. But this phenomenon may be a few quarters away.” He added that there is going to be a huge opportunity as well as competition in the entry- to mid-level smartphone segments,which is where the volumes would remain for a while.

Even though local handset brands now have 47 per cent of the market,analyst Tarun Pathak said the competition for these companies will get tougher when their China-based ODM partners directly enter the Indian market early next year. One such ODM,Gionee has already started making an impact in the market. “Going forward 3G smartphone shipments will continue to rise and we can expect to see a few smartphone vendors introduce 4G-enabled devices by the end of 2013,” he concluded.

However,Micromax has not been able to significantly close the gap with market leader Samsung in the smartphone space. It commands 19.7 per cent of the market in comparison with Samsung’s 33.9 per cent.

Nokia is still the top handset vendor with 18.9 per cent market share. Samsung is next with 12 per cent,followed by MIcromax at 10 per cent.

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