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Nokia India Losing Market Share To Domestic Brands

|June 27 2010 |Samsung, Nokia


Though handset major Nokia remained the market leader with 52 per cent share, the Indian mobile-handset brands strengthened their position in 2009-10 --  adding upto 14% share. According to the V&D100 Indian Telecom Survey, Nokia's revenue slipped 15% to Rs 14,100 crore (down from Rs 16,567 crore in 2008-09) and this downfall was mainly due to the increasing presence of domestic brands as well as another international competitor Samsung. The survey further adds that Nokia's services thrust has diluted its focus on handsets.

Samsung remained the second largest handset vendor with 17.4% market share, followed by LG at 5.9%. Sony Ericsson slipped badly last year, with very few options in the low- and mid-range handset segments, says the survey.imagesIndian brands  added up to 14% market share by revenue during the year, up from about 3-4% total share in the year 2008-09. These brands included Micromax (4.1% handset market share), Spice (3.9%), Karbonn (3%), Lava (1.1%), Lemon (1%) and Max (0.9%). Compared with last year, these Indian brands gained a cumulative 10 percentage points of market share in the very competitive Indian market, and Samsung gained 7 points, as Nokia lost 12 percentage points share.

The mobile handset market grew 4.2% by revenue during FY 2009-10 (compared with 7.9% in 2008-09, and 11.9% in 2007-08). Around 108 million mobile phones were sold in the country during 2009-10, adding up to Rs 27,000 crore in sales, up from Rs 25,910 crore the previous year.

The Voice&Data100 annual survey on handset is based on the revenue of telecom equipment suppliers, including GSM and CDMA handset vendors.


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