Smart-phones business in INDIA: Getting bigger, brighter, and even smarter!

One out of every 7 persons in the world will have a smart phone this year. According to a new forecast from market research firm IDC, more than 1 billion new ‘smart phones’ will make their way into consumers' hands in 2013, the first time it will reach that mark in a single year! India’s total population 1.27 billion. Population between 15 and 50 years: 640 millions (approx.) Number of smart phone users in India: 67 Millions. This proves that the penetration of the smart-phones will be much higher in the upcoming days. When we talk about the smart-phones, we must talk about the types of smart-phones those are popular in India. Low price, high memory, bigger displays, better music system, better camera. “Indian market is too much price sensitive and competitive.” says Alcatel Lucent CEO Michel Combes. Major smart-phone providers in India: Samsung, Micromax, Apple, Blackberry, NOKIA, htc etc…

Samsung: According to the report, Samsung had 43.1 percent smartphone market share at the end of 2012, which does not include the Galaxy Note and the Galaxy Note II, which the market research outfit classifies as phablets and does not include in its smartphone shipment numbers. The actual reason for the success is they targeted customers very well. However, they did not innovate but they have launched their products at proper time and with proper price. The most noticeable thing about Samsung is they have targeted all the segments whether it is high-end customer segment or low-end customer segment. When in 2007 Apple comes with its first iPhones suddenly in 2007 end Samsung adapted Android operating system and launched many smart phones that helps them really well in grabbing the market. Recent news is that Samsung is going to release 2 new smart phones ranging around 15000Rs in 2014 targeting the youth.

NOKIA: Microsoft and Nokia have been more aggressive about pushing new phones running the platform onto the market, particularly by showing off camera-focused models such as the Nokia Lumia 925 and 1020. Nokia, in fact, recently pushed out an ad directly challenging the iPhone by lampooning Apple’s “Photos Every Day” ad that touted the fact that the iPhone is the most-used camera on the market. Once NOKIA was the market leader in India. Then, what went wrong with NOKIA? When apple came with its innovative iPhones for the first time in 2007, companies like Samsung realizes that it is a market transition point and to sustain in this market they need to give better products with competitive features. However, at that time rather than adapting a new operating system NOKIA stuck to his old symbian OS. Then as we all know the market of NOKIA started falling. Then back in 2011 NOKIA adapted windows OS and tried to catch the market that it has lost earlier. But it will take time to compete with widely acceptable android OS. Analysts are expecting that Windows Phone to eclipse iPhone's market share by the year 2016 due to the recent release of the Nokia Lumia 925 to emerging markets.

Micro-Max: In 2008, it entered mobile handset business and by 2010 it became one of the largest Indian domestic mobile handsets company by offering unique affordable innovations. The company has a 22% market share in the smartphone segment in India As per IDC Asia/ Pacific Quarterly Mobile Phone Tracker 2013 Q2. The reason for micro-max’s success is it has adapted new technologies at the right moment. It’s main target is youth and lower-end segment. It has also introduced segment specific phones like for young girls BLING 2.This strategy has helped it in growing rapidly.

Apple: Apple is known for its innovations. Apple was the one who changed the definition of a smart phone. Earlier smart phones were for business people but apple changed the whole conception in 2007 by launching iPhones with innovative apps. Apple’s concept is to provide best and most innovative phones to its customers. Apple recently launched iPhone 5S and 5C. 5C is the cheaper version and made to target especially Asian market. It is seen that iphone 5C has copied the style of LUMIA’s covers; it may be a point that can tamper its innovative image.

Htc: HTC is aiming to capture 25 percent smartphone market share in India in 2013, Faisal Siddiqui, country head, HTC India told at the sidelines of the HTC Butterfly launch. What went wrong with htc is they did not target the market properly in the earlier stage of the smartphone era. What Samsung did is they targeted every segment by launching different phones but htc stuck with the high-end customers only. That went wrong but letter it realizes and launches low-end phones like htc explorer, desire etc. But the question rises here is it sufficient to grab the market back?

Blackberry: Once upon a time, they were so-called one and only business phones. But Samsung and Android OS together broke it. The problem that has happened with blackberry is they responded late while Apple and Samsung are competing in to the markets. Their main flagship feature BBM is expensive while whatsapp OTT player has provided the same on iOS, android and windows phones for free. This has smacked blackberry very badly. Now blackberry has responded and launched 3 back to back smart-phones in 2013.

Now, we will have to wait and watch to see who wins the race.

MONIL THAKER

Class of 2013-15