Telecom Equipment Industry - Handset Manufacturing

8/14/2019 Telecom Equipment Industry - Handset Manufacturing

http://slidepdf.com/reader/full/telecom-equipment-industry-handset-manufacturing 1/10

Telecom Equipment Industry

IntroductionIndian telecom is the fastest growing telecom industry in the world

Liberal Government policies

Growing at an

average rate of

16% per annum

since 2003

Telecommunications sectors attracting a major chunk of the FDI to India

2008-09 20% growth

2007-08 24% growth

2006-07 43.5% growth



Top 10 Indian Telecom Equipment Players

Company Revenue (In Rs Crore) Growth (%) 07-08 Rank

FY 07-08 FY 08-09

Nokia 15000 16567 10 1

Ericsson 8000 10310 29 2

Nokia Siemens Networks 7779 9840 26 3

Alcatel Lucent 7000 8050 15 4

Wipro 5585 5692 2 5

Cisco 5046 4693 -7 6

TCS 3978 4233 6 7Infosys 3605 3926 9 8

ZTE 3000 4800 60 9

Huawei 2700 6240 131 New

Source: Cybermedia's Voice&Data Annual June 2009



Market Segments

EnterpriseEquipment

PhonesCarrier

Equipment

Voice Solutions, Routers, Switches, Structured cabling,Modem, Audio Video Conferencing, Network Storage

Broadband infrastructureWireless infrastructureTelecom software

TransmissionCables, WiMAX

Mobile Handsets

Fixed Phones



Top 10 Mobile Handset Players in 2008-09

Source: Cybermedia's Voice&Data Annual June 2009

Company FY 07-08 FY 08-09 Growth (%) Market Share

Nokia 15000 16567 10% 64

Samsung 1500 2590 73% 10

Sony Ericsson 3083 1555 -50% 6

ZTE 850 1440 69% 5.6

LG 1500 1165 -22% 4.5

Motorola 1200 906 -25% 3.5

Haier 300 388 29% 1.5

Huawei 320 360 13% 1.3

Others 250 939 275% 3.6

Total 24003 25909 8% 100

Revenues in Crores



Market Share of Handset Players in 2008-09

Source: Cybermedia's Voice&Data Annual June 2009 Revenues in Crores

Nokia, 64

Huawei, 1.3

Haier, 1.5

Others, 3.6

Motorola, 3.5LG , 4.5

ZTE, 5.6

Sony Ericsson, 6

Samsung , 10

Nokia

Samsung

Sony EricssonZTE

LG

Motorola

Huawei

Haier

Others



Market Structure

Parameter Telecom Equipment Industry

Sellers Several small and big corporates

Buyers Telecom Service Providers, Corporates, Urbanand rural population

ProductDifferentiation

Features, cost, user-friendliness

Entry / Exit Govt. regulated

The Handset manufacturing industry can be categorized as a OLIGOPOLISTICCOMPETITION, where there is marginal product differentiation and anychange in price by one firm will affect others.



Demand for Mobile Handsets in India

The ICA estimates the Indian handset market to have a volume of 130 million units this year worth Rs. 30,000 crores, up from 101million units in 2008 for a volume of Rs. 26,000 crores. In 2011, thehandset market is expected to touch a volume of 145 million and avalue of Rs. 35,000 crores. Source: Economic times

*ICA (The Indian Cellular Association), apex body of the range of mobileindustry players barring the mobile operators .



Factors influencing Demand

Increase in the Mobile subscriber base:

Mobile Subs.Base (millions)

0 50 100 150 200 250 300 350 400

2004

2005

2006

2007

2008

Mobile Subs.Base (millions)



Demand forecasting using Linear Regression

Year

Total hands

sold (millio2004

Year Total handsetssold (millions) Mobile Subs.Base(millions)2009 132.52 397.92 2010 154.8 473.47 2011 177.08 549.02 2012 199.36 624.56 2013 221.64 700.11

Output

y =22.28x - 44628

R2

=0.9574

y =75.547x - 151376R2 =0.9594

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00800.00

2002 2004 2006 2008 2010 2012 2014

Total handsets manufactured (millions)Mobile Subs.Base (millions)Linear (Total handsets manufactured (millions))Linear (Mobile Subs.Base (millions))

CAGR=11%



THANK YOU!!!

Telecom Equipment Industry - Handset Manufacturing

Documents

Transcript of Telecom Equipment Industry - Handset Manufacturing