Mobile phones sale to touch 206 Million in 2014

Bangalore: Over 139 million mobile phones will be sold in India this year and this will be an 18.5 percent jump over the last year figure, which was recorded at 117 million. According to a report by Gartner, the number might touch 206 million in 2014.

"Established global device manufacturers are losing ground due to fierce competition from local and Chinese manufacturers in the low-cost segment. Price remains the main criteria when buying any consumer electronic device in India, including a mobile device. Carrier strategies, lower tariffs and/or third-generation (3G) data plans will continue to shape the mobile device market in India," said Anshul Gupta, Principal Research Analyst, Gartner.

In their report titled, 'Comparative Landscape: Mobile Devices, India,' the research agency has analysed that, approximately 10 percent of worldwide sales is contributed by India and that is the reason to lure the mobile phone manufacturers. The report tells about the success low priced mobiles which has weakened the big players in the market and has resorted them to respond with more competitive prices both in the mid range and high end segments. It supports its statement by citing the example of preference to pre paid mobiles in India. The Indian mobile market and the telecom operators get their revenue with 85 percent coming from SMS while only two percent comes from data based services.
According to the study, 16.7 percent of mobile devices sold in India in 2010 will support 3G, a rise of 7.5 percent over last year's figures. 3G mobile phone will make up for 69 percent of mobile phone sales by 2014 and smartphone sales will rise to 18 percent in four year's time.

"Cellular phone penetration in India stood at 45 percent in 2009, and the market is entering into a second phase of growth, with replacement sales increasing from 45 percent in 2009 to 50 percent of total sales in 2010. Moves to high-speed 3G networks is bringing in more challenges in terms of innovation and keeping up with fast changing consumer demand. Shortening product life cycle times and declining sales of voice-centric devices will bring changes to the market during the next five years," added Gupta.