According to a report from the Emerging Markets Communications Strategies (EMCS) service of Strategy Analytics, Nokia, which currently enjoys dominant market share in India, is facing a threat from low end handset brands such as Lava, Micromax and Spice. It also reports that vendors such as Samsung, LG and Sony Ericsson may have difficulties in the low end handset market. From a survey conducted primarily among those living in villages and second tier cities, 63 per cent of the respondents preferred their mobile phones to be manufactured in India, citing lower costs, better value for money, ease of repair and availability of parts as the prime reasons for their choice.
According to EMCS Strategy Analytics’ projections, the bulk of new mobile users in India over the next five years will be low income consumers, primarily from rural areas. Affordable mobile phones with an appealing set of features will be the key to success in this market.