It’s no longer just a status symbol. Dual SIM mobile handsets are suddenly catching the fancy of Indian consumers, already comprising 10-12 per cent of total mobile handset sales.
“If 10-12 million mobile handsets are sold every month, about two million are from the dual SIM category. The handset market is growing at 15 per cent (annually) but the dual SIM market is growing at 30-40 per cent,” says Pankaj Mahindroo, National President, Indian Cellular Association.
The number of companies that sell dual SIM handsets has also increased. About 18 months earlier, there were only three companies selling dual SIM phones — Micromax, Spice and Intex Technologies. Now, there are about 40 brands in the market offering these. Incidentally, consumer interest for dual SIM phones has also popularised Indian-made mobile phones; traditionally, consumers had preferred foreign brands.
“We started two-three years earlier, when the Indian made phone has lesser value (in consumer minds). As the dual SIM phone segment swelled, the acceptance was visible and good Indian brands are selling quite well,” says Sudhir Kumar, National Sales Manager, Intex Technologies.
The Indian mobile market grew as the Chinese mobile phone market declined in this segment. In October last year, the government banned the import of mobiles without an IMEI (international mobile equipment identification) number. Many Chinese phones do not have this unique number in their handsets, which is tracked by the network provider. “Earlier, the Chinese had 40 per cent market share in the dual SIM market and now it has come down to 20 per cent. In another two quarters, we expect it to come down by 5-10 per cent,” says Kumar.
The dual SIM mobile market is pegged at Rs 2,000 to 2,200 crore annually and experts say even the coming mobile number portability would not spoil the party. The main reason for dual SIM usage is to take advantage of the cheaper rate plans of newer service providers, while retaining their old number. Companies say that in addition to this segment, there are lots of other consumers who like the use of two SIMs. For example, due to connectivity issues, as different service providers give different signal strengths at specific areas. Also, people who travel regularly on business between cities use two SIMs to check cost escalation. Apart from that, people who like to keep business and personal lives separate also use two SIMs.
Analysts say the effect of number portability would be marginal. “It will impact only slightly. I think people like the idea of dual SIMs because they have the choice of two numbers,” says Mahindroo. Many older service providers are also matching the new rates being introduced into the market. “In India, customer churns are high and the customer optimises the tariff rates of different operators,” says Rajiv Khanna, Chairman, Movil Mobile.
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Handset makers, however, have other challenges. Studies say a consumer with two mobile connections is a value-for-money one, and would demand it from the handset maker, too. “A discerning consumer will also look at value-for-money and wants to be assured of the quality of the mobile, as well as the brand acceptance, as a mobile is a very personal statement,” says Shashin Devsare, ED, Karbonn Mobiles.
In a market where four to five models of dual SIM phones are being launched every month, along with multiple players, the competition is intense. “Low cost dual SIM phones had, until now, been associated with ‘Chinese’ phones and mainly at sub-$50 price points. The only way for a brand to stand out here is to offer value-added services, as well as focus more on the key selling features of the phones,” says Alpesh Patel, CEO, Mi-Fone.
As more brands of dual SIM phones are expected to hit the market, the companies to survive would be those which can offer the most features in the limited price range. The preferred features are one-touch SMS, FM radio, long-life battery and extended memory support. Karbonn Mobile is coming with a touch-phone feature and Qwerty ranges of dual SIM phones and Index Technologies is working on a dual SIM phone with smart phone capabilities.
Larger companies have entered this market, too. Such as Samsung; it expects dual SIM phone sales to contribute 15 per cent to total handset volumes by the end of the year. It has also a dual standby mode phone, where a user talking on one SIM would have an active second SIM, wherein he can put a call on hold in case he gets a call on the second SIM. Similarly, as consumer needs in this segment increase, experts say the more innovative companies will get a bigger share of the market.