Mobile phone sales growth declines in India
By Eureka Bharali   |   Thursday, 11 September 2008, 16:12 IST
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Bangalore: Despite being a potential market for the mobiles, India is witnessing a slowdown in its growth rate in sales. "While the mobile market has seen a growth by 25 percent, the rate of growth in the sales have come down by atleast 10 percent, compared to the previous fiscal Year," says Tina Budhrani, Director, The Phone Galleria. "The current economic environment continues to negatively impact the market, limiting consumer spending and replacement purchases in general," Roberta Cozza, a Gartner analyst said. So, to grip in more customers, individual stores compete with each other through price reduction offers. Navesh of Prime Accessories points, "The sales have definitely come down with different stores giving out the phones at a much lower range." The mobile sales have witnessed a worldwide growth by around 12 percent over last year but compared to the 16 percent growth rate in the last fiscal year, it has come down. Smart phones market saw a growth of 15.7 percent in the second quarter but compared to the earlier 60 percent growth, there is a drastic fall in the growth rate. According to analysts Gartner, a slowing economy around the world is to be blamed. The smart phones market which comprise of a huge share of the overall mobile market can see some improvement in the future with different players trying to delve into it. Moreover even IDC predicts, "Seventy percent of mobile devices will be Smart phones by 2010."

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