Large handset makers such as Nokia and Samsung entering the dual-SIM mobile handset business has left Indian companies struggling to retain their foothold in the fast-growing segment.
According to Cyber Media research, multi-SIM mobile handset shipments accounted for 54 per cent of the Indian mobile handsets market during November 2011 in the country.
Nokia, despite being a late entrant, is already the market leader in the category with 19 per cent market share and shipped approximately 18 million dual-SIM devices globally by the third quarter of of 2011. It is followed by Micromax with 7.1 per cent and Karbonn with 6.9 per cent market share, according to Cyber Media.
Tough competition
“Growing the market has been difficult for them over the last two quarters,” Mr Anshul Gupta, Principal Research Analyst, Gartner, told
Indian handset makers such as Karbonn, Lava and Maxx which established their presence in the market with dual-SIM mobile phones have been facing tough competition from multi-national companies lately, and the market that had until now been growing dramatically has become stagnant in terms of volume growth. However, Indian handset makers are banking on their “competitive pricing” and “niche target group” to help meet targets.
Mr Ajjay Agarwal, Chairman and Managing Director, Maxx, said, “The MNC brands have entered aggressively, no doubt, but consumer offers that we run and accessories that we bundle with products help us boost our sales in the market.”
Growing presence
Companies such as Samsung that have an established presence in the smartphones or feature phones market are further strengthening presence in the dual-SIM market.
Ms Ruchika Batra, General Manager, Corporate Communications, Samsung South-West Asia, said, “The company is also treading the smartphone space with dual-SIM handsets, and also offers phones with GSM and CDMA combinations, and similar unique features.”
Indian players, Gartner's Mr Gupta said, are looking to launch more and more smartphones but at affordable prices. While Mr Sudhir Hasija, Chairman of Karbonn Mobiles, denied that competition from bigger players was affecting Indian companies, he said his company would be launching more smartphones in the future.
“It has not at all affected any of the Indian players and, in fact, we will be launching new range of Android phones and smartphones in April.” Mr Gupta said: “The market is really evolving and we are reaching a stage where people are appreciating smartphones and there is a trend for people looking to adopt these devices.”