Mobile Handset Industry

7/31/2019 Mobile Handset Industry

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History of Mobile Phone

The first hand-held mobile phone was demonstrated by Dr. Martin Copper of

Motorola in 1973

Officially the mobile phone was 1st launched in 1983 by Motorola

In the twenty years from 1990 to 2010, worldwide mobile phone subscriptions grew

from 12.4 million to over 4.6 billion

During the late 1980s and into the 1990s large firms such as Motorola, Ericsson,Nokia and Siemens entered into mobile handset market.

1st MP3 player enabled mobile was introduced in 1999 by Samsung

1st Camera phone was launched in 2002 by SANYO.

Current mobile phones can support many additional services – Internet, Mobile TV,

Camera, Music, GPS



Advancement in Mobile handset

Liquid batteries, speech recognition, flexible touch screen

Co-existing Wi-Fi and WiMAX

Dual Core processors

Transparent Screen

Laser enabled Keypad

Naked eye 3D smartphone

HD Video recording and playback

Superphones with built-in Projectors



Advancement in OS of Mobile phones

Apple’s new OS - iOS 5.0 will be releasing in this year.

Blackberry is going to launch their new OS “Blackberry QNX” in 1st Quarter of 2012

Nokia is already working on Meego and Maemo OS to improve their smartphone

Google has already released their latest android OS “Ice-cream sandwich”

Microsoft is coming with new OS Windows

Samsung – Bada

Blackberry – RIM (Research in Motion)



Android rules the Smartphone OS Market with 38.9% of all market.

Symbian OS having 20.6% share in Mobile OS market, nearly half of Android.

Apples OS, iOS comes in at 3rd place with 18.2% Mobile OS share

Worldwide Smartphone OS Market Share

38.9%

18.2%

14.2%

3.8%

20.6%

4.3%

Android

iOS

BlackBerry OS

WindowsSymbian

Others



Driving factors of mobile handset industry

Mobile Network

- Availability of Network in Urban and Rural areas

- Access to the Network

- Advanced wireless services 3G/LTE

Low cost and Advancement of cell phone

- Smartphone Providing platform to access various services

- Local Cell Phone manufacturers – Micromax, Lava, GFive

Various services and applications available at finger tip- Mobile Banking

- Mobile shopping

- Bill payments

Social networking effect

- Facebook- Twitter

- YouTube

Cheaper calling rates

- Low Calling Rates

- Affordable mobile data plans



Source: IDC

Mobile Tariff Comparison Across World - Voice

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Japan U.S. U.K. Canada Finland Taiwan Denmark South

Korea

Sweden Hong

Kong

India

1

0.25

0.38 0.38

0.10.12

0.17

0.09

0.040.02 0.01

US $



Mobile Tariff Comparison Across World - Text

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

U.S. U.K. Canada Finland Taiwan Denmark South

Korea

Sweden Hong

Kong

India

0.2

0.15

0.14

0.1

0.04

0.03

0.02

0.04

0.06

0.02

Source: IDC

US $



Effect of Mobile phones on Landline Service

The number of telephone subscribers in India increased to 914.59 Million at the

end of October, 2011

881.40 are wireless subscribers and 33.19 are wireline subscribers

Negative growth of wireline subscribers by 0.37% in Oct, 11 as compared to users

in September, 2011

Total 137,718 landline users disconnected their connection in October,2011

BSNL lost 6 lakh landline users in past 3 years

12 lakh wireline subscribers are decreasing per year



Facts & Figures of Telecom in India

Telephone Subscribers (Wireless and Landline): 914.59 million (Oct 2011)

Land Lines: 33.19 Million

Cell phones: 881.40 Million

Active wireless subscribers are 626.18 Million

Annual Cell phone Addition: 227.27 million (Mar 2010 – 2011)

Monthly Cell phone Addition: 7.79 Million

Average selling price for a mobile device sold in India is about $45

75% of the Mobile devices sold costing below $75



Tele - density in India

Wireless Tele-density is 73.27

Wireline Tele-density is 2.76

The overall Tele-density in India reached to 76.03 at the end of October 2011.

Source : TRAI

0

20

40

60

80

100

120

140

160

Urban Rural Overall

159.96

35.82

73.27

6.970.94 2.76

Wireless

Wireline



Customer view for mobile phone

Quality

PriceBrand

FeaturesService

Low Cost

High Cost

Durability

OS

Battery Back up

Dual SIM

iphone

Samsung

BlackBerry

Nokia

Social Networking

Size

Replacement

Repairing

Ease of Availability

Wi-Fi



India Mobile Handsets Usage and Satisfaction Status

64% users happy with mobile handset brand

MP3 Player and FM – most desired feature in Mobile

Smartphone with advanced features at affordable prices – Samsung

Customer care & after sell Support – BlackBerry

Low price with basic features - Micromax and Spice

Ease of Availability - Nokia

Overall satisfaction - BlackBerry



Customers priority for mobile phone

35%

20%

29%

10%

6%

Quality

Service & Support

Brand

Features

Price

Source : CMR survey report , 2011



Value for Money

0%

10%

20%

30%

40%

50%

60%

70%

BlackBerry Samsung Nokia MicroMax Spice G Five

66%

57% 58%54%

54%56%




Brand wise satisfaction for overall Performance

0%

10%

20%

30%

40%

50%

60%

70%

80%

72%

69% 68% 68%

63% 62% 61% 60% 60% 59% 59%57% 56%

54%




Mobile phone industry across world

The global mobile phones market had total revenues of $132.5 Billion in 2010-11 with

CAGR of 10% over last five years.

Global mobile phones industry is expected to increase to a value of $218 Billion by theend of 2015 with CAGR of 10.5%

IDC forecasts worldwide smartphone market to grow by Nearly 50% in 2011

The UK mobile phones market had total revenues of $3.1 Billion in 2010-11 with CAGR

of 4.5% in period of 2006 -2010

It is expected to grow with CAGR of 8.9% for the five-year period 2010 – 2015 with

revenues of $4.8 Billion by end of 2015

The US mobile phones market had total revenues of $10.7 Billion in 2010-11 with

CAGR of 5.4% in period of 2006 -2010

It is expected to grow with CAGR of 3% for the five-year period 2010 – 2015 with value

of $12.4 Billion by end of 2015



Vendor3Q11 Unit Sell

Millions

3Q11 Market Share3Q10 Unit Sell

Millions

3Q10 Market Share Year-over-Year Change

Nokia 106.6 27.1% 110.4 31.6% -3.4%

Samsung 87.8 22.3% 71.4 20.5% 23.0%

LG Electronics 21.1 5.4% 28.4 8.1% -25.7%

Apple 17.1 4.3% 14.1 4.1% 21.3%

ZTE 19.1 4.9% 12.1 3.5% 57.9%

Others 142 36.0% 112.5 32.2% 26.2%

Total 393.7 100.0% 348.9 100.0% 12.8%

Top Mobile Phone Vendors, Shipment and Market share ,Q3 2011

Source : IDC



Worldwide Mobile Phone Market share - Q3 2011

Source : IDC

31.6%

20.5%8.1%

4.1%

3.5%

32.2% Nokia

Samsung

LG Electronics

Apple

ZTE

Others



India holds 12% of shares of all global mobile handset market

Indian mobile handset market grew by 15% to touch revenue of $6.63 Billion in 2010-11

51.5% contributed by smartphone and 25.2% by Dual SIM Mobiles

Mobile phone production grew with CAGR of 28.3% in 2011

Mobile phone industry in India

Smartphone are projected to grow by 45% as against a total market growth of 9%Y-o-Y 2011-12.

The smartphone segment is forecast to see a much higher CAGR of 63.4% and to

achieve a shipment of 77.5 million by CY 2015.

http://ronnie05.files.wordpress.com/2011/11/gartner-india-mobile-markets.jpg



The handset market grew by 15% with total revenue of $6.63 Billions in 2010-11.

Nokia – $2.58 Billion with 0.02% growth

Samsung – $1.14 Billion with 21.7% growth

Sony Ericsson – $13.8 Million with 16.9% of growth

Blackberry – $39 Millione with 61.2% growth

LG – $36.68 Million with 14.6% of growth

G’Five – $26.52 Million with 75.6% growth

Micromax – $45.78 Million with 42.9% growth

Karbonn – $20 Million with 25.5% growth

Spice – $18.4 Million with 11.5% negative growth

Maxx – $14.9 Million with 44.9% growth

Market of Various Mobile Phone in India



Market Share of Various Mobile Phone Vendors in India

39.00%

16.20%

5.90%

5.50%

2.10%

1.40%

4.00%

1.90%

17.20%

6.80%

Nokia

Local Brands

Blackberry

LGSony Ericson

HTC

G’Five

Huawei

Samsung

Others

1.30%

6.90%

3.00%

2.80%

2.20%

Intex

Micromax

Karbonn

Spice

Maxx

Source: Voice and Data



It is expected 213 million handsets to be sold in India in 2011 with total revenue is

expected to reach $9 billion

Mobile handset sales in India expected to grow by 9% in 2012 and reach 231 million

units in 2012, as per Gartner.

IDC forecasts the market to clock 301 million by CY 2015, at CAGR of 13.03% during

the period of 2011-2015

Mobile handset density will be 71% at the end of year 2015-16.

The number of mobile phones will exceed the number of people by 2022-23

The untapped rural market is expected to provide handset players the next phase of

growth.

The advanced capabilities, advanced wireless services, and high quality camera and

the smart phones are expected to witness a steep growth curve through 2015.

Future of Mobile phones

Mobile Handset Industry

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