Mobile handsets market in India is likely to increase 8.5% to 231 million units in 2012, compared to 213 million units expected this year, research firm Gartner said today.
"The Indian mobile device market is driven by the lowest call rates in the world and dominated by low-cost devices, which account for 75% of overall sales in India in 2011," Gartner's Principal Research Analyst Anshul Gupta said in a statement.
On the other hand, home-grown brands are gearing up to give stiff competition to global brands by ramping up capacity and expanding product portfolio.
"The big global brands will continue to face competition from local and Chinese brands as some of these brands are building capabilities to compete at a larger level covering broader consumer segments," Gupta said.
The Indian mobile device market is very competitive with over 150 manufacturers and growing influence of local handset players in the low-end segment that has weakened position of traditionally stronger big global players, he added.
By the end of third quarter of 2011, Nokia led the market, followed by Samsung, Gartner said.
Chinese mobile handset company G'five has taken the third spot in terms of unit sales. Karbonn Mobile and Micromax occupied fourth and fifth positions, the statement said
India accounts for approximately 12% of worldwide sales and is an important market for device manufacturers with aspirations to grow their global share. The market is also supported by many local manufacturers.
"Mobile manufacturers also are competing against many brands in the black markets who are selling without invoices," Gupta said.
He added that the average selling price (ASP) of a mobile device is approximately $45, with 75% of devices sold costing below $75 in India.
"Smartphone sales in India made up 6% of total device sales in the first three quarters of 2011, and this share is expected to increase to 6% in 2012," Gupta said.
