Mobile device sales in India are forecast to reach 138.6 mn in 2010: Gartner

Mobile device sales in India are forecast to reach 138.6 mn in 2010, an increase of 18.5% over 2009 sales of 117 million units, according to Gartner, Inc. The mobile handset market is expected to show steady growth through 2014 when end user sales surpass 206 million units.



The Indian cellular market is very dynamic. New carriers and many new local mobile device manufacturers have entered this already crowded mobile device market. This intense competition has led to very low call rates and low-cost devices from multiple manufacturers in the market. This market was previously dominated by just a few vendors such as Nokia, Motorola, Reliance and Vodafone.

"Established global device manufacturers are losing ground due to fierce competition from local and Chinese manufacturers in the low-cost segment," said Anshul Gupta, principal research analyst at Gartner. "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."

India, contributing approximately 10 percent of worldwide sales, is an important market for manufacturers with aspirations to grow their global market share. Due to its sheer size and open market (mobile devices being sold independently of cellular connection), it has attracted many global mobile device manufacturers. 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).