Handset revenue grows 14.7 pc to touch Rs 35,946 cr in FY13


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The Indian mobile handset market posted revenues of Rs 35,946 crore in FY 13 compared to Rs 31,330 crore in FY12 showing a growth of 14.7%. This was mainly due to the increasing uptake in Smartphones by the Indian consumers.

The 18th annual survey 'V&D 100' covered over 30 mobile handset companies doing business in India across categories like feature phones, multimedia phones, enterprise phones and Smartphones. Both multi-national and Indian mobile phone firms were surveyed for this report.

The biggest surprise of the year was Korean electronics maker Samsung dethroned Nokia from the top position. The Finnish handset maker had been holding the fort for over a decade.

Samsung's rise in the Indian market is attributed to its rich product portfolio that was able to cater to customers of all budget categories. Samsung handset prices range from Rs 1,500 to Rs 50,000. Samsung mobile handsets come in varied screen sizes. These two factors helped the company grabbing customer's attention, besides the product quality and new features.

Samsung ended the year with revenues of Rs 11,328 crore compared to Rs 7,891 crore in FY12 showing a growth of 43.6%. The company also became the market leader with 31.5% market share.

The former king of Indian mobile phone market Nokia dropped a rank to be placed at No. 2 in the Voice&Data survey with 27.2% market share with a significant 18% drop in revenue.

In the 12 months ended March 2013, Nokia revenues from Indian operations were placed at Rs 9,780 crore compared to Rs 11,925 crore in FY12. The revenue loss at Nokia has been staring at Nokia worldwide in view of a few strategic missteps. Nokia's drop in market share started when the company failed to sense the need of a dual-SIM phone for the Indian consumer, and the same was tapped by the Indian players years ahead of global players like Nokia.

On a global ground, not embracing the most popular and most accepted operating system - android - for its Smartphones, gives its potential customers very little choice.

Nokia's Lumia series phones that witnessed huge growth globally in the initial phases could not draw much attention in India.

"The rise of smaller local players like Micromax, Karbon, Lava, and Zen is a clear indication that consumers want cheaper feature rich phones. The next phase of mobile penetration in the bottom of the pyramid India will be driven by these companies", said Ibrahim Ahmad, Group Editor of Voice&Data.

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