Market Research Report : Smartphone market in India India 2012


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A Smartphone is a cellular phone with better, faster and enhanced operating abilities and performance which was earlier restricted to Personal Digital Assistant (PDA) and portable computers. Smartphones are rapidly replacing feature phones in India. With the number of vendors offering wide variety of smartphone devices, consumers are spoilt for choices with diverse features at different price.

The report begins with ‘Introduction’ section covering overview of smartphone which provides basic idea of the technology and brief details regarding the prime features of smartphones.

The ‘Smartphone Overview’ section elaborates global & domestic market state of smartphone business. It is accompanied by a plethora of qualitative and statistical information regarding the state of smartphone in major countries such as, smartphone shipments by various vendors and their market share and other related information.

It is followed by ‘Drivers & Challenges’ section elaborating the major furtherance & impediments for smartphones in India. Both the ‘drivers’ and ’challenges’ are equally stressed upon to provide clear idea regarding the probable obstacles and rewards in the line of business and help vendors take necessary measures.

The report continues with ‘Market Opportunity’ section where potential application areas for smartphones in India are elaborated. Each of the opportunity areas are accompanied by statistical data for detailed analysis.

Next the recent developments and prominent trends in the market are illuminated under ‘Market Trends’ section.

In the ‘Smartphone Player Profiles’ section, the key smartphone manufacturers are profiled. The section begins with a feature-price trade-off matrix for smartphone players in the country. It continues with information such as corporate & business highlights covering operational & recent information regarding each company’s contact information, location, key product and service offerings and key contacts for each of the players. It also provides financial performance for a period of time including revenue and profit, key ratios, financial summary and key financial performance indicators. Key business segment and key geographic segment for each player are provided as well to provide further clear idea regarding the companies. It also consists of a prices and specifications table for the latest smartphone devices available in India.

The report concludes with the section ‘Strategic Recommendation’ which is derived after a comprehensive analysis of the market state & scope. It suggests key strategic moves which can help enhance and accelerate adoption of smartphones in India.

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Market Research Report : Smartphone market in India India 2012

  1. 1. Smartphone Market in IndiaSmartphone Market in IndiaJuly 2012
  2. 2. Executive Summary  Smartphone shipments in India is expected to reach ‐ mn units by 20‐‐, more than double of  the present figure Market  In the Q1 20‐‐, smartphone segment in India achieved a quarterly growth of x1% despite of  global decline of smartphone sales by x2%  Amongst the smartphone platforms in India, x3 has taken the lead followed by x4 Drivers: Challenges:  Increase in Disposable Income and   Low Penetration in Suburban and  Drivers &  Drivers & Changing Consumer Behaviour g g Rural Areas Challenges  Introduction and Availability of Next   Security and Privacy Concern Generation Cellular Networks  Constant Reduction in Prices  Multi‐Core Processor  High Resolution Touch Screen DisplayMarket Trends  Smartphone on Contract  Rise of the Phablets Major PlayersSmartphone Apple Inc. HTC Corporation Research in MotionPlayer Profile y LG Electronics Nokia India Samsung India SMARTPHONE MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Smartphone Market Overview S t h M k tO i•Drivers & Challenges•Market Opportunities•Market Trends•Smartphone Player Profiles Smartphone Price and Specifications•Strategic Recommendations Appendix•Appendix SMARTPHONE MARKET IN INDIA 2012.PPT 3
  4. 4. Smartphones are cellular phones with wide variety of features capable of performing advanced operations Smartphone– Overview • A Smartphone is a cellular phone with better, faster and enhanced operating abilities and performance which earlier  was restricted to Personal Digital Assistant (PDAs) and portable computers only g ( ) p p y  Smartphones are best known for their fast processing speed, high speed internet connectivity and the availability of numerous utility  features including ability to read and write some PC file formats right from the mobile device• Featurephones often have some features resembling Smartphones, but in terms of processing power and multimedia  capability, they are a notched down version of the latter• Smartphones manufacturers are rapidly adopting touch screens over keypads for user input and navigation Smartphone Features Description • D1 F1 • D2 F2 • D3 F3 • D4 F4 • D5 SMARTPHONE MARKET IN INDIA 2012.PPT 4
  5. 5. Smartphone shipments in India is expected to reach z1 mn units by 20‐‐, more than z2 times of the figure in 20‐‐Market Overview – India• Robust growth can be witnessed in the smartphone segment in India which is one of the largest market for mobile  phones in the world  In the Q1 20‐‐, the segment achieved a quarterly growth of a1% despite of global decline of smartphone sales by a2% h h h d l h f %d f l b ld l f h l b %  Poor performance of Indian currency against dollar has led to increase in smartphone prices by a3%, which primarily affected the sales  of a4 segment• A5, a6, a7 and a8 held the majority market while a9, a10, a11 & others held the rest of the market  Leading from the front Samsung has captured around a12% of the smartphone market in the country with a13 offerings and its own Leading from the front, Samsung has captured around a12% of the smartphone market in the country with a13 offerings and its own  bada a14 platform, followed by Nokia with a15% market share and RIM with around a16% market share  HTC doubled its smartphone sales from the previous year to acquire the market share of around a17% in 20‐‐• Amongst the smartphone platforms, Android has taken the lead followed by Nokia’s Symbian OS platform Smartphone ‐ Market Size (Shipment) Smartphone Platform ‐ Market Share (20‐‐) n4 Mn Units n1 n5 n7 Z% Y X n6 n8 W V n3 U n2 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ SMARTPHONE MARKET IN INDIA 2012.PPT 5
  6. 6. SAMPLE Smartphone Vendor Analysis – Global Top 4 • V1 Samsung • V2 • V3 • V4 Apple • V5 • V6 • V7 • V8 Nokia • V9 • V10 RIM • V11 • V12 SMARTPHONE MARKET IN INDIA 2012.PPT 6
  7. 7. Drivers & Challenges – Summary  Drivers Increase in Disposable Income and  Increase in Disposable Income and Changing Consumer Behaviour Challenges Introduction and Availability of Next  Low Penetration in Suburban and  Generation Cellular Networks Rural Areas Constant Reduction in Prices Security and Privacy Concern Advanced Features, Applications and  Digital Contents Colossal Wireless Subscriber Base SMARTPHONE MARKET IN INDIA 2012.PPT 7
  8. 8. Enterprise mobility is witnessing major growth in India  SAMPLE leading to enhanced opportunity for smartphonesOpportunity in Enterprises• Enterprises with highly distributed workforce embrace mobile computing platforms for efficient operation & timely  communication  communication  B1 and b2 industries top the list of enterprise mobility adopters followed by b3, b4 and b5 industry in India  It also holds major potential within industries including Healthcare, Defense, Aviation, Energy Utility and Telecom, wherein advancement  in technology will stimulate the adoption rates • More and more smartphone solutions are being launched for enterprises, offering world class POS (point‐of‐sales)  solution for mobile workforce• Also enterprises bound by time‐constraints utilize mobile devices for commercial transactions for not only selling but  also for purchase activities Enterprise Mobility – Market Size Mobile Workforce – India (Growth and Size) INR bn mn e F% k d L% j c b i a h g 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ SMARTPHONE MARKET IN INDIA 2012.PPT 8
  9. 9. Market Trends (‐/‐) SAMPLE  • T1 M1 • T2 • T3 • T4 M2 • T5 • T6 M3 • T7 • T8 • T9 M4 • T10 • T11 SMARTPHONE MARKET IN INDIA 2012.PPT 9
  10. 10. Feature‐Price Trade‐Off Matrix for Smartphone Players in India SAMPLE  p10 p11 p9 p5 p8 p7 atures p4 p6 p3 S1 Fea S2 p2 p1 Price• q1 and q2 largely provide expensive premium products, while the former has no offering in the entry level smartphone  segment, the latter has introduced few in recent times• Some players, such as q3 and q4, offer vast number of products belonging to multiple price segment and having  variable features‐set, thus despite of having one of the highest priced and feature reach smartphones, they are  positioned lower in the matrix• q5 players compromise on some features to offer smartphones at much lower cost than the established q6 companies SMARTPHONE MARKET IN INDIA 2012.PPT 10
  11. 11. Public: Foreign Company – Company 1 (1/3)Company Information SAMPLE  Offices and Centres – India Corporate AddressTel No.Fax No.WebsiteYear of Incorporation Place Ticker SymbolStock Exchange India Head OfficeProducts and ServicesProducts and ServicesCategory Products/Services Key People Name N Designation D i tiC1 • S1 Person 1 D1  Person 2 D2  Person 3 D3  SMARTPHONE MARKET IN INDIA 2012.PPT 11
  12. 12. Public: Foreign Company – Company 1 (2/3)Financial Snapshot i i lS h SAMPLE  Key Ratios K i Total Income Net Profit/Loss y‐o‐y change  Revenue Profit Particulars  2011 2010 2009 2008 (2012‐11) INR mn INR bn s Profitability Ratios Operating Margin ‐1.10 14.68% 15.78% 16.93% 19.72% r Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61% p q Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62% Return on Equity 7.60 60.51% 52.91% 34.43% 47.18% Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96% 0 0 Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13% 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets 3.58 24.34% 20.77% 18.93% 24.74% Return on Fixed AssetsFinancial Summary  28.31 319.77% 291.46% 227.97% 346.05% Cost Ratios• The company incurred a net profit of INR  ‐ bn in FY 20‐‐, as  Operating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08% compared to net profit of INR ‐ bn in FY 20‐‐ Administration costs (% of  0.49 10.10% 9.61% 9.11% 7.41% Sales)• The company reported total income of  INR ‐ bn in FY 20‐‐, as  Interest costs (% of Sales) (% ) 0.01 0.01% 0.00% 0.00% 0.01% compared to INR ‐ bn in FY 20‐‐ compared to INR bn in FY 20 Liquidity Ratios• The company earned an operating margin of ‐ per cent in FY 20‐‐, an  Current Ratio ‐12.79% 1.27 1.46 1.95 1.90 increase of ‐ percentage points over FY 20‐‐ Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18• The company reported debt to equity ratio of ‐ in FY 20‐‐, a decrease  Leverage Ratios of ‐ per cent over FY 20‐‐ Debt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91Key Financial Performance Indicators Debt to Capital Ratio NA NA NA NA NA Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67 Indicators Value (28/06/2012) Efficiency RatiosMarket Capitalization (INR bn) A  Fixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41Total Enterprise Value (INR mn) B  Asset Turnover 24.95% 1.83 1.46 1.21 1.32 Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46EPS (INR)EPS (INR) C  Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09PE Ratio (Absolute) D Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51 Improved Decline SMARTPHONE MARKET IN INDIA 2012.PPT 12
  13. 13. Public: Foreign Company – Company 1 (3/3)Key Business Segments SAMPLE  Key Geographic Segments k1 k2 k3 k4 k5 k6 k7 k8 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐Key InformationDescription  Details • C2 designs, manufactures, and markets mobile communication and media devices,  personal computers, and portable digital music playersOverview • It also sells software, services, peripherals, networking solutions, and third‐party digital  content and applications worldwide • C3 operates in India via its subsidiary, C4 SMARTPHONE MARKET IN INDIA 2012.PPT 13
  14. 14. Company Information SAMPLE Private: Domestic Company – Company 2 (1/3) Offices and Centres – India India Head OfficeTel No.Fax No. Place   WebsiteYear of Incorporation India Head OfficeProducts and ServicesProducts and Services Category Products/Services Key People Name N Designation D i ti C1  •S1 Person 1 D1  Person 2 D2  Person 3 D3  SMARTPHONE MARKET IN INDIA 2012.PPT 14
  15. 15. Private: Domestic Company – Company 2 (2/3)Financial Snapshot i i lS h SAMPLE  Key Ratios K i y‐o‐y change  Particulars  2011 2010 2009 2008 Total Income Total Income Profit (2012‐11) INR mn Profit / Loss INR mn  Profitability Ratios W Operating Margin ‐1.10 14.68% 15.78% 16.93% 19.72% Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61% V Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62% Return on Equity 7.60 60.51% 52.91% 34.43% 47.18% Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96% Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13% U Return on Assets 3.58 24.34% 20.77% 18.93% 24.74% T Return on Fixed Assets 28.31 319.77% 291.46% 227.97% 346.05% 0 0 Cost Ratios 20‐‐ 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08% Administration costs (% of  0.49 10.10% 9.61% 9.11% 7.41%Financial Summary  Sales) Interest costs (% of Sales) Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%• Company incurred a net profit of INR ‐ bn in FY 20‐‐, as  Liquidity Ratios compared to net profit of INR ‐ bn in FY 20‐‐ Current Ratio ‐12.79% 1.27 1.46 1.95 1.90 Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18• It reported total Income of  INR ‐ bn in FY 20‐‐, as  Leverage Ratios compared to INR ‐ bn in FY 20‐‐ Debt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91 Debt to Capital Ratio NA NA NA NA NA• The company earned an operating margin of ‐ per cent in  Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67 FY 20‐‐, a decrease of ‐ percentage points over FY 20‐‐ Efficiency Ratios• The company reported debt to equity ratio of ‐ in FY 20‐‐,  Fixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41 an increase of ‐ per cent over FY 20‐‐ Asset Turnover 24.95% 1.83 1.46 1.21 1.32 Current Asset Turnover Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46 Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09 Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51 Improved Decline SMARTPHONE MARKET IN INDIA 2012.PPT 15
  16. 16. SAMPLE Private: Domestic Company – Company 2 (3/3)Key Recent DevelopmentsDescription  Details • O1 is a leading player in technologies including real‐time bidding, data marketplaces, big Overview data, algorithms and targetting in o2 • Its engine is manned by over ‐ people across o3, o4, o5, o6, o7 • The company works closely with top publishers across the global platform including o8  and o9 • It constitutes an exclusive reseller of o10’s premium inventory in India, Thailand, Partners and Investors Indonesia and Phillipines • It also has partnership with technology vendors namely o11, o12, o13, o14 • Its list of investors include names such as Nexua Venture Partners, Helion Venture  Partners, Norwest Venture Partners and Draper Fisher Juvertson,    SMARTPHONE MARKET IN INDIA 2012.PPT 16
  17. 17. Brand Model SAMPLE Smartphone Price and Specifications (1/4) Price (INR) Operating System Processor RAM 3G Wi‐Fi GPS Y 56,599 X 1 GHz Dual‐Core 512 MB    R1 1 R2 R3 R4 SMARTPHONE MARKET IN INDIA 2012.PPT 17
  18. 18. Thank you for the attentionThe Smartphone Market – India 2012 report is a part of Netscribes’ Telecom and Consumer Electronics Series.For more detailed information or customized research requirements please contact:Phone: +91 33 4064 6214E‐Mail: sales@netscribes.comFollow us on:About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report,Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes. and Netscribes is not responsible for any loss or damage arising from use of this document This document is the sole property of Netscribes andprior permission is required for guidelines on reproduction. SMARTPHONE MARKET IN INDIA 2012.PPT 18