Annual handset sale to cross 206 mn by 2014: Gartner

Driven by low-cost handsets, the sale of mobile phones in the country is expected to cross 206 million units in a year by 2014, from 117 million units in 2009, according to research firm Gartner.

While sale of cellphones in India is forecast to touch 138.6 million in 2010, registering an increase of 18.5 per cent over 2009, it is expected to surpass 206 million units by 2014.

"Established global device manufacturers are losing ground due to fierce competition from local and Chinese manufacturers in the low-cost segment," Gartner Principal Research Analyst Anshul Gupta said.

According to the report, India contributes to about 10 per cent of worldwide sales, and is an important market for manufacturers globally.

"The market is supported by many local manufacturers, which has led to more than 50 brands vying for consumer attention in India, besides the many brands in the black markets (selling without invoices)," the report added.

Gupta said pricing of the handsets would continue to be an important factor for sales.

"The entry of Indian players focusing on low-end, value conscious consumers has intensified competition in the Indian mobile device market. A large volume of mobile device sales in India come from the low-end device segment," Gupta said.

The average selling price (ASP) of a mobile device is approximately $52, with 85 per cent of devices sold costing below $100, he added.

As a result, the positions of the likes of Nokia, Samsung and Sony Ericsson, which were previously dominating the Indian market, are weakening.

With telecom operators planning to roll out 3G services soon, sales of 3G-enabled handsets are expected to account for 16.7 per cent of the total sales in 2010, up from 9.2 per cent in 2009.

By 2014, 3G devices sales are expected to account for 69 per cent of the total sales.

Smartphones, which comprised 5.2 per cent of total handset sales in the first quarter of 2010, is expected to contribute to 18 per cent of the total handset sales in 2014.