The document discusses the mobile phone market in India. It notes that smartphones were first introduced in India in the mid-1990s by Micromax. Currently there are approximately 30 million smartphones in India, with Android being the leading operating system. Local brands like Micromax and Karbonn have about 20-25% of the Indian smartphone market share. The smartphone industry exhibits oligopolistic characteristics with companies like Samsung, Apple, and Micromax competing aggressively for market share.

2. The SMART Phone
BLUE turtles

3. Mobile phones in INDIA

Mid nineties, INDIA saw its first mobile

Maker: MICROMAX

Modi TELSTRA was the first service provider in India

First city to receive mobile network: KOLKATA

4. Some numbers…

Total number of Smartphones: ~30 Mn.

Smartphone share as a % of total mobile sales:
12-15%

Leading smartphone operating system: Android

Share of android : 56.4%

Leading local brands : Micromax, Karbonn, Spice

Share of local brands in total smart phone sales:
20-25%

5. Major players in the Market

APPLE

SAMSUNG

BLACKBERRY

NOKIA

SONY

MICROMAX

LG

HTC

6. Mobile phones in the market

Total mobile revenue – 1.5 trillion, over 2% of global
GDP

42% of the revenue from Top 10 operators

Samsung and Apple account for close to 50% of
smart phone unit share

And they also account for 90% of smartphone
revenues.

Competition is Cut throat.

7. Latest smart phones

Apple : Apple iPhone 5

Samsung: Samsung galaxy s4

Micromax: Micromax canvas 4

Sony: Sony Xperia Z

HTC: HTC Butterfly, HTC one

Nokia: Nokia Lumia 1020

Blackberry: Blackberry Z10, Q10

8. Segments in the market

A. Ultra low cost mobile handsets (INR 3000-7000)

B. Medium cost mobile handsets (INR 7000-20000)

C. High cost mobile handsets (INR 20000+)

9. Segments in the market

The below table gives details of number of phones of
each brand in each segment
A
Samsung
Apple
Micromax
Nokia (WINDOWS)
Nokia (SYMBIAN)
Sony
HTC
KARBONN
B
C
9
0
11
1
14
1
1
15
10
0
9
10
10
11
11
9
10
3
0
2
0
7
6
0

10. Market share of OEMs in India
Smart phone market share in India
21.5
42.3
5.1
5.6
8.4
17.1
Samsung
Micromax
Karbonn
Nokia
sony
others

11. Market share of OEMs globally

12. Market share based on Mobile OS
Market share of Mobile OS
20.6
2.6
3
56.4
17.4
Android
Symbain
iOS
Windows
others

13. Major challenges faced by the industry

Raw materials

Integrating cloud

Recycling the unused mobiles

Government regulations

15. ANALYSIS OF THE INDUSTRY

16. DEMAND
The demand for a smart phone follows the normal
demand curve. As the price decreases, the demand
for the good increases.
Price

D
Quantity

17. Demand & Market Demand


As there are many factors that influence demand, we
assumed the demand equation to:
Q= 5P + 1C + 1.5F+2S+3B+4Ad+7U+2(DoI) + 1.5Se
[for 3000<=P<=20000]

For the price above 20000, some of the above said
factors do not matter. Hence,

Q= 2P + 1C + 2F+5B+6Ad+ 1 Se [for P>20000]

18. Elasticity, Inelasticity and Cross elasticity

A smart phone follows all the rules of normal
commodities excepting for a few exceptions. A normal
smartphone has price elasticity which is above unity.

Eg: demand for phones like Samsung S4, HTC one etc.

Exceptions being iPhone 5. Even though priced
extremely high, the demand of the iPhone 5 was so
high, that they fell short of supply as soon as the phone
was released. Being a luxury commodity, it is a fairly
inelastic good.

19. Cross Elasticity

Due to the high number of complementary goods, this
concept can be seen often

Acquisition of Motorola by Google

Merger with LG and Google

Acquiring Android  finally name changed to Google play

Apple releasing their locked phones exclusively with network
providers like Airtel in India.

Same was done by Blackberry and Vodafone.

The decline of Nokia from being the top brand. This explains
the concept of cross elasticity among substitutes.

21. Market Power


A Smart phone industry: An Oligopoly
Being an Oligopoly, fight for more market share is
always present. Some examples are

Micromax Canvas: strikingly similar to Galaxy S2, S3
Note 2 phones from Samsung, but almost at half the
price.

Aggressive marketing by every player including Apple.

Blackberry, a brand known for QWERTY. Releasing a full
touchscreen phone with Z10

The famous case of Apple v/s Samsung