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India handset sales rise by 24%

Posted: 03 Nov 2010     Print Version  Bookmark and Share

Keywords:cell phone  handsets  market forecast 

Asia Pacific sales will account for 38 per cent of 134 crore cellular phones shipped this year, with India handset sales will record a rise of 24 per cent, according to ABI Research.

It also forecasts 134 crore cell phone handsets shipping in 2010, increasing to 170 crore units a year in 2015. Reports from the analyst are based in part on strong Q3 2010 sales of 34.62 crore handsets and annual growth to date of 20 per cent. The 2010 growth �is a remarkable feat, irrespective of the rebound effect following the deferred handset purchases during the economic recession,� said Jake Saunders, VP for forecasting, ABI Research.

�The Asia Pacific region currently makes the largest contribution to global handset sales,� said ABI analyst Celia Bo in a separate press release. Asia's �handset sales are projected to increase 9 per cent this year compared to 2009, and will account for 38 per cent of total shipments," she said.

Sales in India are expected to increase 24 per cent from 8.43 crore handsets in 2009 to 10.40 crore in 2010. In Indonesia, sales are expected to expand from 3.30 crore in 2009 to more than 3.70 crore by the end of 2010.

Nokia has been strong with above average market share in these markets thanks in part to a focus on low cost handsets, ABI said. However Samsung, LG and RIM have been gaining share among higher-end handsets and smart phones.

At the same time, �a number of local handset vendors such as Micromax and Spice Mobile in India, and Nexian and SPC Mobile in Indonesia, are intent on catering to low-end and mid-tier end-users,� said Kevin Burden, director, handset service, ABI. �Their game-plan is to push the envelope on providing increasingly feature-rich handsets at aggressive price-points," he added.

Globally, Nokia led in cell phone market share in the latest quarter at 31.9 per cent followed by Samsung which grew to 20.6 per cent, according to ABI. LG takes a distant third place at 8.2 per cent, followed by Apple and RIM which both expanded sales to 4.1 and four per cent respectively. Sony-Ericsson and Motorola trail at three and 2.6 per cent.

Nokia's market share could come under pressure from a shortage of cell phone chips and displays, Burden said. Conversely, Samsung and LG could see gains during the current shortages given their in-house chip and display divisions.

- Rick Merritt
EE Times

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