For some observers in the Western media the Nokia X family is a kind of challenge to Microsoft unlike my earlier post describing it as Nokia’s “best of everything” X range smartphones to conquer the smartphone market between the Asha and Lumia devices [‘Experiencing the Cloud’, Feb 24, 2014]. In Will Satya Nadella and Microsoft Pick Up The Challenge Laid Down By The Android-Powered Nokia X? Forbes contributor, Ewan Spence simply concludes that:
If Nadella is looking to move Microsoft towards a future with more focus on easily accessible services rather than hardware lock-in, then the Nokia X should continue to receive some love and affection, along with continued support in the media and from the press teams in Redmond. It may even be made available for other manufacturers looking for an Android base to build on with some preferential patent licensing bundled along with the deal.
Other journalists accustomed to the U.S. market, where you don’t buy your smartphone but getting it as part of your paid subscription “for free”, even critisizing the Nokia X performance (see two critics on the right) unlike the head of UX Design, an American (see his view on the left) in charge of the team in Beijing, China “with global scope and BRIICA (Brazil, India, Indonesia, China, Africa) focus”:
Doug Walston, Head of MP [Mobile Phones] UX Design, Nokia – Beijing*:
“With the X family,” says Doug, “we were really focused on the needs of new people using smartphones, especially those in emerging markets. We wanted to create a beautifully simple device that gives access to a wealth of apps.”
“Apps don’t need to be rewritten to tap into Fastlane. We’ve used some special sauce (and native platform hooks) so it all just works.”
“If there’s an element of the interface of which I’m particularly proud, it’s the home screen. It’s so distinctive, bold and direct. It’s a break from the confusion that you see elsewhere in phones at this price.”
“The simplicity of the interface also means that it has a very low overhead on performance. Typically for a phone with all these features, you would expect a horrid battery life and a laggy interface in this segment, but that isn’t true of the X family at all. The performance is surprisingly good.”
From Not just a pretty face – the UI of the X family [Nokia Conversations blog, Feb 26, 2014]
*” The entire MP UX Design team is in Beijing now with global scope and BRIICA (Brazil, India, Indonesia, China, Africa) focus and encompasses accountability for the UX Design of the entire MP devices portfolio (15 + devices annually, with an expected volume of around 300 million devices sold annually).” This is a rephrased text corresponding to the job announcement of the Head of Mobile Phones Industrial Design [ID] on LinkedIn. Walston took this role on May 9, 2013 when he came from Motorola Mobility to take over the MP UX Design part of Peter Skillman’s job leaving him with the role of heading the HERE Design group based in Berlin and Cambridge. Before that Skillman was heading the UI and services design for the successful Asha range for two years.
Jane McEntegart, Writer/Editor at Tom’s Hardware:
Nokia X 1.0 is not slow or sluggish, but in the brief time we played with it, it wasn’t blazing fast either. The tile-interface also didn’t feel quite as sleek as it does in Windows Phone 8.
From Hands On with Nokia’s Windows Phone-flavored Android OS [Tom's Hardware, Feb 24, 2014]
Tom Warren, Senior Reporter for The Verge, the resident Microsoft expert:
If you put the Nokia X side-by-side with the company’s Lumia 520 handset it might be hard to tell them apart.
Using the X software can be quite frustrating, however, as the entire interface is prone to slow response and a lot of lag. Closing or switching between apps on the X takes far longer than other, even entry-level, smartphones, and browsing the web will quickly test your patience. The third-party apps we saw on the X, such as Facebook, looked as they do on other Android smartphones, but they too suffered from poor performance. Nokia’s choice to combine the functions of home and back into the single back button is confusing, and it’s difficult to predict exactly where in the interface the button will take you when you press it. Part of the reason for the laggy interface and apps … is more likely related to the Android version in use on these devices.
Nokia appears to be positioning the X as a method to draw people to Microsoft’s cloud services.
From This is Nokia X: Android and Windows Phone collide [The Verge, Feb 24, 2014]
Is the head of MP UX design is right or such a harsh critic as Tom Warren? You could decide it for yourself by watching the video below. Draw special attention to the Fastlane performance difference between the Nokia X with 512MB of RAM and Nokia X+/XL with 768MB ([3:46-4:30] vs. [5:53-6:26]). It is also not an accident that “Resizeable tiles” are demonstrated on the 768MB version. My impression is, that if you are buying the 768MB versions (Nokia X+ or Nokia XL) you won’t feel the problems Tom Warren outlined above, won’t feel at all:
Nokia Launches Nokia X At Mobile World Congress In Barcelona [Red Robot - Intelligent Distribution YouTube channel, Feb 24, 2014]
Today at the Mobile World Congress, Nokia introduced the Nokia X family, affordable smartphones that offer access to a world of Android apps. The new devices feature the best of Nokia design and quality, signature Nokia experiences such as HERE Maps and Mix Radio, and popular Microsoft services such as Skype, OneDrive and Outlook.com.
[0:06] Press conference
>> [0:50] Elop’s 1st introduction: the new Nokia 220
>> [1:20] 2nd introduction: the new Nokia Asha 230
>> [1:32] 3d introduction: the new Nokia X and Nokia X+
>> [2:07] Preloaded great applications on the Nokia X family, hundreds of thousands of Android apps, Nokia signature experiences (HERE Maps, Nokia Mix Radio)
>> [2:42] Fastlane as a fantastic element of Nokia X experience
>> [2:57] 4th introduction: the Nokia XL
[3:40] B-roll (i.e. alternative) footages (with no sound):
> [3:42] Nokia X: Runs Android Apps, 4″ display, Fastlane, 3MP camera, 1GHz Dual Core Processor, Dual SIM
>> [3:46] Nokia X: Fastlane
>> [4:30] Nokia X: Skype
>> [5:08] Nokia X: Nokia Store
>> [5:33] Nokia X: Third Party App Stores
> [5:49] Nokia X+: Runs Android Apps, 4″ display, Fastlane, 3MP camera, 1GHz Dual Core Processor, 768MB RAM, Dual SIM
>> [5:53] Nokia X+: Swipe
>> [6:26] Nokia X+: Resizeable tiles
>> [7:15] Nokia X+: Nokia Mix Radio
>> [8:02] Nokia X+: Demo App: Plants VS Zombies 2
> [8:40] Nokia XL: Runs Android Apps, 5″ display, Fastlane, 5MP camera with flash, 2MP fron-facing camera, 1GHz Dual Core Processor, 768MB RAM, Dual SIM
>> [8:45] Nokia XL: Swipe
>> [9:26] Nokia XL: Camera: 5MP with autofocus and flash
Even more, as the rest of my post goes through the below details (i.e. sections 1. to 4.), you will find (along with with me) that from the point of view of focusing on the BRIICA (Brazil, India, Indonesia, China, Africa) markets (which was the task of the development team in Beijing China) this is an excellent product with no problems mentioned by some media people in the West. There is even no conflict with Microsoft at all (another critical speculation typical to the Western Media) as the Nokia X family is also preparing the ground for the upcoming super low-cost (higher levels as well) Windows Phone devices from local and regional brands like the #3 Karbonn and the #4 Lava (Xolo) in India, as well as Gionee which is a large local brand in China with strong recognition in India as well, not to speak of those who will supplied from Foxconn, the biggest white-label phone manufacturer in China.
Why does this post concentrate on the Indian market?
Nokia X family has been well positioned for the highest growth Indian market
The feature phone and smartphone markets in India according to CyberMedia Research India and IDC
New low-cost Windows Phone partnering strategy by Microsoft especially aimed at the Indian market
1. Why does this post concentrate on the Indian market?
Answer #1: The Indian smartphone market is expected to double and touch 80 million by the end of current fiscal, a top Samsung India official said today.
“We are expecting smartphone sales in the country to touch 80 million mark by the end of current fiscal [Samsung’s fiscal years are the same as the calendar years], while total sales were around 40 million in 2012-13,” Samsung Mobile and IT India Head Vineet Taneja said.
From Indian smartphone market to double to 80 million by fiscal end: Samsung [The Economic Times (of India), Feb 18, 2014]
Answer #2: “Now is the right time because there is a rapidly growing low-price affordable smartphone segment that’s really taking off in a number of growth economies. We’re seeing that in countries like Indonesia, Russia, Vietnam and a number of others,” [Stephen] Elop [former Nokia CEO and soon-to-be Microsoft executive vice president] says in the interview, shot at Mobile World Congress in Barcelona.
While Nokia X is based on Android, the user interface “is remarkably similar to the Windows Phone interface,” he says.
That means these customers, many of whom have never owned a smartphone before, will learn to navigate in Microsoft’s world first, with the potential over time to buy higher end Nokia Lumia phones that run Windows Phone as Lumia prices drop.
“And so we’ve gone for that and we’ll take advantage of that to keep people in the Lumia family but using Nokia X as a feeder system into our Windows Phone strategy,” Elop says.
The strategy isn’t meant for the U.S. where cellular carriers widely and generously subsidize the price of high-end phones in order to lock customers in to long-term contracts, he says.
The above excerpts are from the Nokia’s Stephen Elop Talks Android video interview:
Nokia’s Stephen Elop talks about the move by the company to embrace Android at this time.
From Nokia chief: Nokia X Android smartphone is a gateway drug to Windows Phone [Network World, Feb 25, 2014]
Answer #3: is in another post of mine: Nokia’s “best of everything” X range smartphones to conquer the smartphone market between the Asha and Lumia devices [‘Experiencing the Cloud’ Feb 24, 2014] but before reading that here is Nokia X/ Nokia X Plus Hands On (Dual SIM) [WPXBOX YouTube channel, Feb 24, 2014] video from which you can easily understand why is it “best of everything” instead of a stock Android smartphone:
Detailed Hands on of Nokia X and Nokia X+ which only differ by memory of 256 MB Ram. They both come with 4GB memory card which can be expanded to 32GB.
Answer #4: in section 2 of this post I will show you that these smartphones will quite probably have a competitive on line pricing starting at most from:
- Rs 7400 ($119) for Nokia X vs. the list price of EUR 89 [$122]* (Rs 7582)
- Rs 8000 ($129) for Nokia X+ vs. the list price of EUR 99 [$136]* (Rs 8434)
- Rs 8600 ($139) for Nokia XL vs. the list price of EUR 109 [$150]* (Rs 9284)
* Although these prices are before local taxes.
Answer #5: India will be key to future smartphone growth as it represents more than a quarter of the global feature phone market. “Growth in the India market doesn’t rely on high-end devices like the iPhone, but in low-cost Android phones. Nearly half of the smartphones shipped in India in 2013 cost less than US$120,” said Kiranjeet Kaur, Senior Market Analyst for mobile phones at IDC Asia/Pacific.
From Smartphone Prices Race to the Bottom as Emerging Markets Outside of China Come into the Spotlight for Future Growth, According to IDC [press release, Feb 24, 2014]
Answer #6: In addition to existing partners — Nokia, Samsung, HTC and Huawei — Microsoft has announced it is now working with Foxconn, Gionee, Lava (Xolo), Lenovo, LG, Longcheer, JSR, Karbonn and ZTE to develop on the Windows Phone platform. … Customers can expect to see an even broader array of devices, from iconic to lower-cost options, coming to market. … The expanded Windows Phone ecosystem will also provide mobile operators and retail partners with additional opportunities to offer white-label Windows Phone devices under their own brands.
From Microsoft adds nine new Windows Phone hardware partners [press release, Feb 23, 2014] where Karbonn is the #3 and Lava (Xolo) the #4 brands (after #1 Samsung and #2 Micromax), while Gionee is a local brand in China with strong recognition in India as well, and Longcheer as a local Chinese brand that has long been in India as well (albeit with top recognition already lost). Finally Foxconn is the biggest white-label phone manufacturer in China whose production has already influenced the Indian market very much.
We are adding support for Qualcomm Snapdragon 200 and 400 series chipsets, with options that support all major cellular technologies, including LTE (TDD/FDD), HSPA+, EVDO and TD-SCMA. We will also support soft keys and dual SIM where our partners want it for their devices. One nice benefit of these additions is that many hardware vendors will be able to use the same hardware for both Android and Windows Phone devices [obviously if they are using the Qualcomm SoCs]. From Joe Belfiore, corporate vice president of Microsoft Windows Phone in Scaling Windows Phone, evolving Windows 8 [Windows Phone Blog, Feb 23, 2014]
Q. Many of your recent partnerships and announcements have focused on emerging markets. Is that a major priority?
A. It’s not our only focus, but it’s a very big one. The purpose of low-cost phones in emerging markets is to drive volume. From Joe Belfiore, corporate vice president of Microsoft Windows Phone in Q.&A. With Joe Belfiore on the Future of Windows Phone [Bits blog of The New York Times, Feb 23, 2014] That is the Nokia X family will not only prepare the ground for its own Lumias but for these upcoming low-cost Windows Phone devices as well (also why IMHO Microsoft will not kill the Nokia X family after Nokia devices and services becomes part of it)
2. Nokia X family has been well positioned for the highest growth Indian market
X marks the sweet spot [Nokia Conversations, Feb 25, 2014]
We asked Jussi Nevanlinna, VP for Mobile Phone marketing, some of your questions about the new Nokia X family, why it’s important for Nokia and why customers will be delighted with the phones.
First of all, why now? Why is the timing now right for an Android-based smartphone from Nokia?
There are a couple of answers to that question.
To launch the Nokia X family, we needed to be able to create a product that was true to Nokia’s heritage in design and build quality. But we also needed to make it very affordable. Lots of different components had to come into place for us to create something that’s clear and easy to use, but also high quality and within people’s financial reach.
The other answer is that the market itself is moving. We’re the number one manufacturer in growth markets in the ‘entry-level’ and ‘feature phone’ categories. But a lot of those people are now aspiring to smartphone products. There are a significant number of users worldwide who are about to experience the Internet through a mobile device. As you can imagine, we want to be ready for them.
The Nokia X family is based on the Android Open Source Platform (AOSP). Does that put the future of the family at the mercy of Google?
To fully explain, this is a Nokia smartphone that runs Android apps. At its heart, we have AOSP on top of which we have added Nokia design and usability expertise to create the user interface that people see. Then we have added Nokia experiences like HERE Maps and Nokia MixRadio, and Microsoft services like Skype, Outlook.com and OneDrive. What we don’t have is Google services: this was deliberate. Instead, we have implemented Nokia and Microsoft services to create something truly differentiated.
So who is the target audience for the Nokia X family?
These are global products, which will be available pretty much everywhere except North America, Korea and Japan. We have a particular focus on growth markets – for example, India and China, Thailand and Indonesia then over to Egypt, Kenya and Nigeria, and South America, especially countries like Brazil, and Mexico. They are all places where we’re seeing this big shift from feature phones to affordable smartphones.
Our Nokia X family customers are young, social, very aspirational and are fans of Nokia. They love our brand and our product design. And they also love Android apps: the quantity and choice is very appealing to them.
So we’re offering them the best of three worlds:
Nokia design and build quality;
Microsoft cloud services; and
Android apps.
Does the X family compete with the Lumia family and maybe mean lost sales for Lumia?
Our approach to compete in the affordable smartphone market is twofold. While Lumia remains our primary smartphone platform and we continue to push the prices down, Nokia X addresses price points that are generally lower than those reached by Lumia, and we’ll keep pushing the Nokia X prices down even further.
In fact we see Nokia X as a stepping-stone to Lumia. With Nokia X we are bringing people the best of Nokia and Microsoft services and experiences, making a future switch to Lumia natural.
Some might see creating an Android-based device as strange considering that the plan is for Nokia’s devices and services business to join Microsoft soon?
I can’t speak on Microsoft’s behalf; what I can say is our strategy with Mobile Phones has been, and remains, connecting the next billion. Microsoft is equally focussed on ‘mobile first; cloud first’. As I have explained, getting people exposed to and loving Microsoft and Nokia services in the affordable segment creates a natural pathway to Lumia, which is designed to be the pinnacle smartphone experience.
Technology becomes cheaper all the time. When it becomes possible to create a Lumia for $100, will the X family be retired?
I think the key word is ‘family’. We will be announcing more products in the family over the course of the next year, and the price range it covers will change to suit the markets. We will be taking Nokia X into even more affordable price points.
What do app developers need to do to make their Android apps available for the Nokia X family?
The short answer is: nothing. In the vast majority of cases, Android apps will run very well on the Nokia X family, out of the box.
Furthermore, we’re working with developers to make it very easy to submit apps into the Nokia Store. In most cases, they simply republish their apps to Nokia Store .
Where apps depend on functionality that isn’t on the Nokia X family devices, like Google Maps, we’ve created API plugins for the Android SDK to allow developers to simply tick the box to use HERE Maps instead.
And what advantages can developers and customers gain by using Nokia Store?
Android developers stand to make big gains by supporting the Nokia X family. We have heard many times that they find it hard to monetise their apps. One reason for that is, in emerging markets, people are a lot less likely to have credit cards. The Nokia Store offers in-app payments through operator billing, and we have the largest network of operators signed up for that. It’s been shown through experience that when operator billing is available, then revenues increase by up to five times.
That’s one reason the Nokia Store offers a better alternative. The other is from the user’s side. The Nokia Store is curated. The apps are screened and scanned so you won’t bump up against malware or inappropriate content. So they can shop in our store with confidence and security.
And worldwide, people are very comfortable with using third-party app stores that aren’t owned by Google. In Russia, the Yandex Store dominates the Android marketplace. In China, Google Play isn’t available, so all app purchases are through third parties. So you see, non-Google stores are already the norm for most Android owners.
Nokia X is a phone made for India [India Today, Feb 24, 2014]
The Finnish handset maker has finally unveiled its much talked of Android phone, the Nokia X, at the ongoing Mobile World Congress 2014.
Nokia has launched a family Android phones with three variants–Nokia X, X+ and XL–at affordable prices. All three Nokia X variants are going to be low-cost phones with the Nokia XL expected to be priced around Rs.9,000 [$145]. For now, the prices that have been revealed are: Nokia X for 89 euros, the X+ 99 euros and the larger LX carries a price tag of 109 euros.
Specs-wise, these are basic level phones. All three devices are powered by a Qualcomm Snapdragon Dual Core processor and are dual SIM. The Nokia X comes with 4-inch display, the X+ has a bit of more storage options and the XL variant comes with 5-inch LCD screen and and 5-megapixel rear and 2-megapixel front cameras.
The Nokia X phones do not come with pre-installed Google Play Services. As a result the Play Store isn’t available on the Nokia X or Nokia X+. Though, Android apps can be downloaded through Yandex Store.
Once, Nokia was the leader of Indian mobile industry. Nokia feature phones used to be first choice of the Indian consumers. But it could not keep pace with the emergence of smartphones. Its competitors like Samsung, Sony and Micromax took away the markets from the Finnish handsets maker with innovative smartphones at affordable prices.
With affordable Android phones, the world’s largest smartphone maker, Samsung, is dominating the Indian market. Even, the home grown tech company Micromax made a market for itself with range of affordable Android phones having great features.
With its budget prices and widely used Android OS, the Nokia X series of smartphones will target the consumers looking to upgrade themselves from feature to smartphones. As the smartphone market is growing in India, given its brand reputation in the country, Nokia phones are going to give its competitors a run for their money in the sub Rs.10,000 [$161]segment. An Android phone from the Nokia at affordable price will be a good deal.
Well aware of its advantageous positing in the price-sensitive Indian market, Nokia has listed the X series devices on its India website as coming soon just after unveiling the devices at the ongoing Mobile World Congress 2014 in Barcelona.
Nokia Lumia 525 – First Impressions [Digit YouTube channel, Jan 7, 2014]
After the major success tasted by the entry level Lumia 520, Nokia has introduced the updated Lumia 525 for those wanting just a little more, at the same price
The current (Feb 25, 2014) lowest online price for Lumia 525 (in India) is on Snapdeal.com:
Rs 11499 [$186] (list price) –> Rs 9519 [$154] Black/White –> Rs 9712 [$158 ] Yellow
Competing with the following models of the marketing leading brands (Samsung, Micromax, Karbonn):
Rs 11230 [$181] Rs 9244 [$149] … Rs 12100 [$195] Rs 9379 [$151] … Rs 12990 [$207] Rs 9997 [$161]
11945
13820
16888
7639
Broadcom BCM21664T
MediaTek MT6589
MediaTek MT6589
Qualcomm Snapdragon S4 MSM8227
For comparison the preceding the Lumia 520 on the same site:
Rs 10499 [$169] (list price) –> Rs 7976 [$128] Black –> Rs 7995 [$129] White
–> Rs 8169 [$132 ] Yellow
Then some leading competitors for the Nokia X range (also from Snapdeal.com):
All list prices: Rs 9999 [$161] Rs 8949 [$144] … Rs 7225 [$117] … Rs 7895 [$127]
13767
6878
10957
7440
7623
Broadcom BCM23550
Broadcom BCM21654G
MediaTek MT6572
Qualcomm MSM8225
Qualcomm MSM8225
Which means a competitive on line pricing starting at most from:
- Rs 7400 ($119) for Nokia X vs. the list price of EUR 89 [$122]* (Rs 7582)
- Rs 8000 ($129) for Nokia X+ vs. the list price of EUR 99 [$136]* (Rs 8434)
- Rs 8600 ($139) for Nokia XL vs. the list price of EUR 109 [$150]* (Rs 9284)
* Although these prices are before local taxes.
For comparison the top of the Asha Touch range, the Asha 503 on the same site (currently):
Rs 7399 [$119] (list price) –> Rs 6549 [$106] Black/White –> Rs 6894 [$111] Yellow
–> Rs 6939 [$112] Red
Which means that the price of Asha devices could be lowered after the Nokia X devices appear on the market. This is especially true with the introduction of Asha 230 using the same SoC:
As the Asha 230 was announced for EUR 45 [$62]* (Rs 3823) you got an immediate price indication for such a decrease. In fact this new model is an effective replacement for the current Asha 500 as the entry level Nokia Asha Software Platform 1.1 device which has:
2 MP rear camera instead of a 1.3 MP one on Asha 230
standby time up to 840 h (2G), talk time up to 14 h (2G) because of an 1200 mAh battery instead of the 1020 mAh one on Asha 230
but has the best online price of Rs 3999 ($66), actually from Nokia India against the list price of USD69 before taxes or subsidies.
3. The feature phone and smartphone markets in India according to CyberMedia Research India and IDC
From CMR announces top Telecom trends for 2014 in India [CyberMedia Research India press release, Dec 31, 2013]
CMR today released its MarketVision 2014 for Telecommunications in India. Below are the key trends identified for 2014 for some priority segments.
Mobile Handsets
2013 witnessed the first time decline in growth of feature phones in India and this trend is going to further sharpen in 2014 as the primary focus of the industry as well as consumers would remain around the smartphones.
CMR identifies the following trends for 2014 in Smartphones
LTE enabled smartphone releases to be among priority areas of the vendors.
Chinese ODM’s have started taken a direct OEM route towards India Smartphone market. CMR expect around 10 Chinese ODMs entering into India Mobile market in 2014.
‘Made in India’ smartphones amount to 47% of the total sales. With such tremendous growth and success witnessed by these brands in the local market, 2014 will be the time to look at newer geographies including MENA, Latin America and the SAARC [South Asian Association for Regional Cooperation] region for the home grown vendors. CMR expects 3-4 such brands looking for new geographic markets.
With the increasing confidence and reliance of Indian consumers on the online retailing, particularly after the emergence of successful platforms like flipkart, CMR expects the role of ‘etailing’ becoming important for emerging brands who for various reasons cannot establish their physical distribution network across the country, particularly the non-metro cities and towns.
While the ecosystem partners like ODMs and app developers will be exploring Windows as a platform for mobility, CMR identifies Tizen, Firefox, Ubuntu and Sailfish among the new open source OSs emerging in 2014 in the India market.
CMR expects vernacular apps to start getting focus in 2014 from the developer community in the country. Since national elections are going to be among the predominant themes for 2014, we expect a lot of apps being developed around this space which could be owned by a political party or being promoted by a neutral app developer.
62.9 million mobile handsets shipped in India during July-Sept 2013, a Y-o-Y growth of 10.9%; September registers, 19.5 million handset shipments; Nokia retains overall leadership [CyberMedia Research India press release, Nov 19, 2013]
Smartphone shipments cross 11.1 million units; Samsung still the market leader in smartphones category with Micromax and Karbonn at #2 and #3, respectively. Top 3 vendors make up nearly 63.1% of the total smartphone shipments.
Featurephone segment witnesses the first ever negative growth in shipments in the India Mobile handsets market.
According to CMR’s India Mobile Handsets Market Review, 3Q 2013, November 2013 release,India registered 62.9 million mobile handset shipments for the period July-September (3Q) 2013. During the same period, 11.1 million smartphones were shipped in the country.
Commenting on the results, Faisal Kawoosa, Lead Analyst, CMR Telecoms Practice said, “We have been saying that the way forward is smartphones. JAS 2013 is the first quarter to actually report this trend in numbers. This means vendors can expect to see large opportunities in the upgrades market where many featurephone users will upgrade to a smartphone. It may also so happen that new smartphone purchases register lower volumes vis-à-vis upgrades. But this phenomenon may be a few quarters away.”
“So there is going to be a huge opportunity as well as competition in the entry- to mid-level smartphone segments, which is where the volumes would remain for a while,” Faisal further added.
India Smartphones Market
The India smartphones market during July-September 2013 saw a rise in shipments by 152.3% over and above the July-September 2012 number, taking the contribution of smartphones to 17.6% of total mobile handset shipments during the period July-September 2013.
Commenting on these results, Tarun Pathak, Analyst, CMR Telecoms Practice said, “The India smartphones market continues to be a competitive space with close to brands vying with each other. Going forward, we expect this segment to be even more competitive as we expect some of the China-based ODM partners entering directly into the India market during 1H 2014. It will be interesting to see what impact this will have on the market share of existing smartphone players.”
“Another interesting observation is that local handset brands have now close to 47% market share in the India smartphones market and this momentum has been a source of confidence to a couple of players to enter new geographies outside India where the smartphone market is on the rise. Going forward 3G smartphone shipments will continue to rise and we can expect to see a few smartphone vendors introduce 4G-enabled devices by the end of 2013,” Tarun concluded.
Notes for Editors
This release is a part of the CyberMedia Research (CMR) Smart Mobility Market Programme.
CyberMedia Research (CMR) uses the term “shipments” to describe the number of handsets leaving the factory premises for OEM sales or stocking by distributors and retailers. For the convenience of media, the term shipments has been replaced by ‘sales’ in the press release, but this reflects the market size in terms of units of mobile handsets and not their absolute value. In the case of handsets imported into the country it represents the number leaving the first warehouse to OEMs, distributors and retailers. CyberMedia Research does not track the number of handsets brought on their person by individual passengers landing on Indian soil from overseas destinations or ‘grey market’ handsets. These are, therefore, not part of the CyberMedia Research numbers reported here.
CyberMedia Research (CMR) tracks shipments of mobile handsets on a monthly basis. However, as per convention, the market size is reported on a calendar quarter basis where appropriate to the