Indian Mobile handset Brands like Micromax and G’Five were talk of the town just couple of years back. Everyone (including yours truly) were singing praises on how they were taking the global giants head on. But the sprint that started at highest pace is now loosing steam.
Global Handset makers like Samsung & HTC seem to have immediately figured out the way to overcome the challenge thrown at them by local Indian mobile handset brands.
A study carried out by CIOL’s flagship journal Voice & Data on Indian mobile handset market has revealed that large Indian players like Micromax have faltered in their growth and registered lower revenues and drop in their market share.
According to the V&D 100, HTC registered maximum growth in 2011-12 more than doubling its revenue from 450 crore in 2010-11 to Rs. 923 crore. While Nokia still held the largest Market share (38.2%) their revenue fell 8 percentage points as compared to previous year.
Samsung’s growth of 38% is quite impressive because unlike HTC, they already had a much larger market share in India. They increased revenues by INR 2171 crore which is more than double of HTC’s entire revenue for 2011-12. Samsung has learned the dynamics of Indian mobile market well, and have launched products that Indian consumers fancy. They now rule over quarter of Indian handset market.
Among the Indian mobile handset makers, Micromax witnessed 14% fall in their revenue and their market share has come down to 6.3% which in previous year was over 8%.
Karbonn is now ranked 5th and is the only Indian handset maker that gained on revenues and market share with 32% growth. Their revenue in Indian market now stands at 1327 Crore and hold 4.3% of Indian market.
The Top 10 Indian Handset Makers
|Rank||Brand name||2011-12||2010-11||Change||Market Share (%age)|
|Revenue in Rs crore|
[source: Voice & Data – V&D 100]
In overall terms, the total revenues declined by 5% this fiscal 2011-12. Its revenue dropped to Rs 31,215 crore from Rs 33,031 crore a year back. In previous year it has registered 15% growth.
The primary reason for this I presume is the dropping mobile handset prices and also tapering of growth of new mobile subscriber additions in India.