A t last count, the Indian mobile handset space had 35 players and market leader Nokia saw its market share slipping from 64 per cent in 2009 to 36 per cent in June this year.
According to latest data released by International Data Corporation (IDC), the main beneficiaries have been smaller players such as Micromax and Spice Mobiles which have muscled their way into the top five club. “The influx of new brands led to a spurt in the market and saw emerging vendors corner 33.2 per cent of mobile handset shipments in 2010,” the IDC report said.
In the midst of all this, just one player — Samsung Mobiles — has been able to retain its rank (second largest) and increased its market share from 9 per cent in the previous year to 17 per cent in June 2010. Ranjit Yadav, Head of mobile and IT at Samsung, says the company is confident of adding another 6-7 per cent market share by the end of the year.
That’s a long journey for a company which had only a negligible presence in India five years ago. So what led to the brand’s growth? Pankaj Mohindroo, president of the Indian Cellular Association, attributes this to Samsung’s ability to carve out its “own sweet spots” in segments such as smart phones and touch screen. Also, the company beefed up its quality and distribution network.
In the touch screen space, for example, Samsung has a portfolio of 23 models ranging from the entry-level to the 3G-enabled touch music phones, the Samsung Champ and Samsung Galaxy S. Prices range between Rs 4,250 and Rs 31,500. Galaxy was the company’s answer to Apple’s popular iPhone.
The move coincided with a sharp growth in dual- and triple-SIM card slot phones, which have cornered 38.5 per cent of the mobile handset market in India, from less than 1 per cent in April-June 2009.
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“Samsung’s dual-sim portfolio now boasts of 10 models in the range of Rs 2,020 and Rs 12,300,” Yadav says.
No surprises, therefore, that in the touch screen space, Samsung says it leads the pack with a market share of 30 per cent Samsung, some say, also recreated social networking handsets with its Corby series. Realising that Indians are beginning to change handsets within 18 months, the accent is on adding new features at a fast pace.
At the same time, the company has embarked on a huge campaign (involving actor Aamir Khan) to push its phones at the retail stores. Retailers have been guaranteed a 30 per cent return on all Samsung merchandise. Large multi-brand stores have Samsung attendants to push the brand.
Analysts expect to see more such social networking-focused phones in future but also warn that only those vendors who can balance the right set of functions with competitive pricing will appeal to budget-conscious young people. According to Informate’s mobile tracker, mobile internet browsing commands the highest share of time spent — more than calls and messaging put together — in India.
One of the mainstays of Samsung is that unlike some of its competitors, it offers support on all platforms- Android, bada and Windows7. “We recently introduced our own proprietary Open OS ‘bada’ in India. We remain platform agnostic and will provide consumers open OS handsets for them to make their own choice,” Yadav explains.
So, while there is a Galaxy S that scores on account of its features such as the world’s first Super Amoled screen and applications such as aldiko and e-book among others, the Wave comes with similar features on the Samsung bada platform.
Value-additions include options for phone customisation, by way of online stores, and a well-oiled after-sales service.
But there are a few problems as well. The main challenge, sources say, is the fact that Samsung’s main competitor now is not Nokia, but smaller players which have a cost advantage by way of taxation as well as quality compromises. Also, the limited battery life of its phones is a major issue.
Samsung, however, is aware of the problems and is working on it. For example, it has launched Samsung Guru Power for the rural markets with a long battery life of 2,000mAh providing 22 hours talk time and two months standby time.