Nokia, losing large shares to domestic brands!
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Nokia, losing large shares to domestic brands!

By SiliconIndia   |   Wednesday, 29 September 2010, 10:47 Hrs
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The domestic companies like G'five, Micromax, and the Spice have consolidated their position in Indian mobile phone market with low priced and feature-rich handsets gains market shares of 33.2 percent, according to the IDC research.

According to the Indian Telecom Survey, Nokia's revenue slipped 15 percent to Rs 14,100 crore (down from Rs 16,567 crore in 2008-09, and this downfall was mainly due to the increasing presence of domestic brands. The survey further adds, because of the rapid move to touch screen smart phones and cloud computing Nokia is losing its shares. Nokia is well positioned for cloud computing with Ovi, but lost momentum when Apple introduced the touch screen paradigm to mobile phones. Several new players successfully launched their own devices at significantly lower Average Selling Values(ASVs) in the price sensitive India market. Such handsets found ready acceptance amongst first time buyers, especially from small towns and villages, IDC India Associate Vice President-Research Anirban Banerjee said.

During the last six months, the top five mobile handset vendors in India were the Finnish handset maker Nokia with a market share of 36.3 percent, Samsung with market share of 8.2 percent, Chinese brand G'five with a market share of 7.3 percent in terms of unit shipped. Apart from these mobile handset makers, India also gave a tough competition to the foreign brands in terms of price, handset model and services through Micomax and Spice.

The India mobile market saw a unique trend of multi-SIM phones capturing 38.5 percent of the market. This could be attributed to several new service providers responding with highly competitive tariff plans to a price sensitive mobile telephony user market,IDC India Lead Telecoms Analyst Nuveen Mishra said.

This represents a manifold increase from five new vendors, representing 0.9 percent combined share of units shipped in the January-March 2008 quarter.

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