Tuesday, January 09, 2007

THE ROAD AHEAD

Well, which company dominates the sector is a different issue, but the fact is that with a low penetration level of 14%, a lot more ground needs to be covered in the mobile handset market. Adds Shushmul, “A vast untapped market of over 65% in rural India needs to be tapped. Importantly, out of the current purchases of mobile phones, more than 55% is done by the middle class, which forms a formidable chunk of the Indian population.” Also, with monochrome handsets forming a whopping 60% of the total handsets sold, the future growth definitely lies in the entry level segment. “Though many players like Nokia, Samsung & LG have started manufacturing in India, but the race is to break that psychological barrier of Rs.1000 phone,” adds Pai. Despite this, most players will also continue to target the high-end segment which gives them higher margins. But the fact is that the winner of the race in the Rs.1000 handset might well become the next face of the Indian telecom handset market. And more interestingly, it just might not be the ever dominant Nokia this time around. What say, Mr. Kallasvuo?

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative

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