Gartner Predicted Mobile Device Sales in India to reach 231 million units in 2012

Leading IT research and advisory company, Gartner predicted mobile device sales in India to reach 231 million units in 2012, against 213 million units in 2011 marking an increase of 8.5 per cent. The mobile handset market is expected to show steady growth through 2015 when end-user sales will surpass 322 million units.

The Indian mobile device market is driven by the lowest call rates in the world and dominated by low-cost devices, which account for 75 per cent of overall sales in India in 2011.

According to Gartner, the Indian mobile device market is competitive with more than 150 manufacturers selling devices to consumers. While most of the local and Chinese manufacturers have remained focussed on low-cost devices, some manufacturers have built capabilities to deliver smartphone devices and even ventured into other global markets.

The average selling price of a mobile device is about $45 with 75 per cent of devices sold costing below $75. Smartphone sales in India made up 6 per cent of total device sales in the first three quarters of 2011, and the share is expected to increase to 8 per cent in 2012.

India accounts for about 12 per cent of worldwide sales and is an important market for device manufacturers, with aspirations to grow their global market share. Due to its sheer size and open market, it has attracted many global mobile device manufacturers.

Gartner also mentioned in its study that with the growing influence of local handset players in the low-end segment, the position of the traditionally stronger, big global players weakened. The mid- to high-end market is believed to be getting increasingly competitive too, with greater focus from global players on the Indian market, and the launch of competitively-priced midrange and high-end devices.