Replaced handset segment to rise by 15 per cent in UP

Surge of young consumers coupled with cellular phones making inroads as an essential item, the replacement market of mobile handsets in Uttar Pradesh is booming.

With presence of the key players like Nokia, Samsung, Motorola and LG operating in this segment, the sales of replaced handsets is expected to increase nearly by 15 per cent.

According to Pankaj Mohindroo, national president, Indian Cellular Association (ICA) the replacement market for handsets in India is approximately around 2.5 million handsets to which UP accounts to about 200,000 handsets a month.

According to the association, the total cellular phone market in the state is around Rs 2,500 crore. About 10 million cell phones are expected to be sold in the state alone this fiscal

Replacement of mobile handsets implies the incidence wherein a consumer upgrades his handset with another one. This also takes into account the multiple handsets kept by a consumer, if he/she wishes to keep more than one cell phone.

“Youths are leading the mobile market today. They wish to flow with technology, it is here the need to update their handsets arises, giving vent to the replacement mobile set market,” informed Vikram Sharma, manager of a prominent Nokia dealer shop in Lucknow.

Rise in the average income of people is another important factor that seems to be working for the sales of handsets, beside the low cost entry point for first time users.

“Performance of the product that a customer is using and subsequent damage to the handset are other significant reasons which attribute towards replacing of handsets by individuals,” Mohindroo added.

According to the trend, the first time mobile set users usually bout for low-priced handsets. These handsets are available for a price as low as Rs 1,500. After some time, such users wish to graduate to premium handsets their choice and affordability. It is here the replacement market helps them, under which the users can get premium handsets at lower price if taken as a replacement model.

Another factor, according to the industry insiders, that seems to work well for a city like Lucknow is that it is slowly driving away from a first time handset user market to multiple handset usage.

“Consumers replace their handsets as per newer features and technology upgradation available in the market,” informed an official from the ICA.