Domestic handset manufacturers are coming up with feature-rich products at cost-effective price points, which is helping them to pose stiff competition to global handset makers  The Indian mobile industry is passing through an exciting phase. According to a recent report by Gartner Inc., mobile connections in India are poised to grow by 27.3% in 2010 to reach in excess of 660 million, whereas revenues from mobile services will reach US$19.8 billion by the year-end, up by 19.7% from 2009.The report also states that mobile penetration, which stood approximately at 44.5% at the end of 2009, is expected to touch 55.9% in 2010. It is anticipated that mobile penetration in India will increase to 72.5% by 2012 and further to 82% by 2014. However, it is worth mentioning that in comparison to a market share of just 3-4% during 2008-09, the domestic handset manufacturers have been able to capture 14% of the domestic mobile phone market in 2009-10. In fact, the domestic handset manufacturers are posing stiff competition to the multi-national players by strengthening their presence in the Indian market.
Factors propelling growth
The big question is where will this growth come from? It is for a fact that urban markets are gradually getting saturated with multiple mobile connections. On the other hand, there is huge untapped potential in the rural areas but the needs and aspirations of the rural market are very different as compared to urban markets. The foreign brands available in the Indian market largely failed to understand the needs of the rural consumers till very late and catered to the needs of the urban audience only.
It is this need-gap in the market that gives me the conviction to say that growth of domestic handset manufacturing catering to specific market requirements is imperative for the next wave of telecom growth and local players will play crucial role in extending the reach of mobile phones to every Indian. Indeed if we look at the recent handset launches, it will become visible that Indian manufacturers have tried to cater to the needs of rural consumers in all possible manner. From offering a torchlight in the phone to ensuring longer battery life—which is suitable for villages where power shortage is an acute problem—domestic handset manufacturers are providing all this and more to rural consumers.
Mobile companies have recently shifted their focus to QWERTY keypad handsets equipped with multimedia features. However, we believe in making a difference in the sector by launching products, which comply with our customer needs while adding value to our product portfolio. Although, cell phones at present come with advanced technology features, technical barriers prevent their adoption to a great deal. The focus has now shifted towards making user friendly handsets loaded with the latest features. We have been able to ensure the same as handsets manufactured by Zen Mobile are loaded with user-friendly features.
We firmly believe that this deep understanding of consumer needs and attractive pricing pattern have been the driving forces behind new players in the sector registering a collective market share of 12.3% of the total 101.54 million mobile handset sales in 2009. These domestic handset manufacturers are also proving their mettle by providing competent after-sales service. As far as after-sales service is concerned, for us, it has always been an important issue. Currently, we support our customers from 200 service centres and plan to take it up to 400 by this year-end.
Not only mobile service providers but even mobile applications developers are looking at Indian handset manufacturers as their growth drivers. At the recent Mobile Application Developers meet organised by the Internet and Mobile Association of India held at IIM Bangalore on July 28, most of the speakers opined that the mobile applications market would be controlled by domestic handset manufacturers in the near future.
Deepesh Gupta, managing director of Zen Mobile, a prominent handset manufacturer in India |
