Surprising mobile handset market report from IDC India has Nokia miffed

Summary:According to IDC India's Q2 report, Nokia's market share has come down to 36.3% which is a 20% drop since last year.

The IDC report on India’s mobile market has some very interesting numbers amongst which they claimed that Nokia lost 20% market share to local players. Nokia on its part came out and called the report inaccurate.

The IDC Q2 2010 report for mobile handsets in India had the following numbers:

  • 38.63 million mobile units shipped during April to June 2010 quarter, which is a 6.3% increase QoQ (Wow!)
  • 38.5% of total sales were multi SIM handsets. (That’s another shocker!)
  • 33.2% of the market captured by the ‘Emerging vendors’.
  • Nokia has 36.3% market share based on units shipped. (which was 54% in 2009 and 70% a year before that.)
  • 40.4% units shipped were <$50
  • 48.6% phones were between $50 to $100 (sourced from Yahoo News)

According to IDC Analyst Naveen Mishra, the indigenous handset manufacturers like Micromax and Spice gained customers in first time mobile buyers from the small town and villages. I had argued that this was a lucrative market Nokia should dedicate resources for. Nokia on its part has come out and questioned the validity of the IDC report on the following points:

  • IDC report does not take into account the Nokia Chennai plant production, 50% of which is for India.
  • The report says India has a total of 35 brands but Nokia believes that Chinese manufacturers increase the tally around 80 to 100
  • Nokia’s research says the dual SIM market is only 22% (and not 38.5% as claimed by IDC.)

Nokia said, “We believe IDC's starting point for estimating the Indian market is incorrect –- shipments are not equivalent to actual sales and market shares. Nokia continues to do well in India across all segments.”

The debate continued with IDC India’s associate VP, Vishaal Bhatnagar backed their report saying, “In India we have been in this business for six years, while globally, we have been engaged in tracking handset sales for 10 years. We stick by our numbers.” He also clarified that they calculated most of Chennai plant’s export.

Form the report the top five mobile handset manufacturers in India are:

  1. Nokia
  2. Samsung
  3. G’Five (never heard of ‘em!)
  4. Micromax
  5. Spice

Topics: Hardware, Mobility, Nokia

About

I completed a diploma in Electronics before finishing a Bachelor's Degree in Electronics and Telecommunications. End-user technologies interest me a lot. Being a news-junkie, following and writing about what's current and interesting is something I enjoy.

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