Indian Mobile Handset Market

Posted on | September 14, 2005 |

According to a study by Research and Markets, the Indian mobile handset market is now worth about $2 billion, but will surge by over 60 percent in two years. Nokia dominates the market with a 59 percent market share, followed by Samsung with 13 percent and Motorola with 7 percent.

Handset manufacturers including world’s top 3 viz. Nokia, Motorola, Samsung besides LG, Hyundai, Elcoteq have plans to set up Indian manufacturing plants.

Wireless NewsFactor takes the angle of India becoming a handset manufacturing hub.

Manufacturing in India could shave costs by two-three percent — an attractive edge for handset makers whose margins are being eroded by competition and heavy advertising costs, says Pankaj Mohindroo, chief of the Indian Cellular Association.

“India is a natural choice because it compares favorably in terms of wage costs globally. Also, it offers one of finest demographic profiles for companies because about half the population is below 25 years of age,” Mr. Mohindroo said.

Local manufacturing is expected to help India cut the pounds 92 million it spends each month to import phones.

With more than 60 million users, India’s mobile base exceeds the population of Italy. But handset ownership remains clustered in urban centers because networks cover just 30 per cent of the country, which will increase to 75 percent of the population by 2006.

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