Handset sales to rise by 18.5%, says Gartner

Mobile device sales in India are forecast to reach 138.6 million in 2010 — an increase of 18.5 per cent over the 117 million units sold in India, according to Gartner. The mobile handset market is expected to show a steady growth through 2014, when end user sales will surpass 206 million units.

India, contributing approximately 10 per cent of worldwide sales, is an important market for manufacturers with aspirations to grow their global market share. Due to its sheer size and open nature (mobile devices being sold independently of cellular connection), it has attracted many global mobile device manufacturers. The market was previously dominated by just a few vendors such as Nokia, Motorola, Reliance and Vodafone.

However, the market is also supported by many local manufacturers. This has led to more than 50 brands vying for consumer attention in India, besides the many brands in the black markets (selling without invoices).

“Established global device manufacturers are losing ground due to fierce competition from local and Chinese manufacturers in the low-cost segment,” says Anshul Gupta, principal research analyst at Gartner. The entry of Indian mobile handset 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. The average selling price (ASP) of a mobile device is approximately $52, with 85 per cent of devices sold costing below $100, according to Gupta.