Nokia grabs 19% market share of dual-SIM mobile phones in India
Just when it seemed that Nokia and Blackberry handsets are dying a slow death in the Indian smartphone market; Finnish handset manufacturer Nokia has made a sweeping comeback to claim its edge over Indian brands, powered by its recent lead in dual-SIM mobile market, according to a latest Cyber Media research report.
Nokia, the world’s largest seller of mobile phones by volumes, had recently lost substantial market share in India to domestic phone makers such as Micromax, Lava and Maxx Mobile, which were riding on low-cost, dual-SIM mobile handsets sourced mainly from China.
The Finnish major had witnessed declining shipments mired by pressures from open sourced Android system of Google which recently overtook Symbian, competition from low-cost Indian brands and whole new range of multi-SIM phones that accounted for 54% of the total Indian mobile handset market during Nov 2011.
Finally, Nokia took corrective steps by joining the bandwagon of dual-SIM mobile phones by launching its first ever C1-00 and C2-00 phones in mid-2010. However, Nokia, a late entrant in the multi-SIM device category, fast tracked the process of consolidation by rolling out five models by Sept 2011, to make its presence felt in every price segment in India.
Surprisingly, Nokia has briskly crowded the smartphone market by launching seven phones in the dual-SIM category to grab 19% market share, in order to obstruct domestic brands, such as Micromax (7.1%) and Karbonn (6.9%), from making further inroads into the Finnish major’s Indian dreams.
Further elaborating on this while announcing Nokia Q3 results, Mr Stephen Elop of Nokia was quoted as, “Nokia shipped approximately 18 million dual SIM devices globally, and in markets such as India where dual SIM is pervasive, we gained market share.”
Further, the report indicates that the local brands were forced to increase prices of their products, hit by margin erosion from dearer imports of components from China and other Asian nations. Contrastingly, Nokia managed to cope with forex fluctuations as it sourced its requirements for the low-end handsets from the domestic market.
Mr Ajjay Agarwal, Chairman and MD, Maxx Group ascertained this by saying:
“The sharp depreciation of the rupee over the last couple of months has understandably had an impact on margins in the industry. Many players have had to increase their prices to protect margins. And, we at MAXX have selectively revised the prices of some models, post the festive season.”
Will Nokia succeed in creeping back to its glorious, unchallenged leadership in India?