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India Smartphone Markets (Q2 2013) – IDC

Posted in Mobile Devices and Company Updates by Manas Ganguly on September 3, 2013

Smartphone shipments in india grew by 50% QoQ to 9.3 million units (Q2, 2013) as against 6.1 million units(Q1, 2013)
The total mobile phone shipments increased by 4% QoQ and 21% YoY in the country.
The feature phone market is declining but still accounts for 85% of the mobile phone market in the country.
67% of 9.3M Indian Smartphone Shipments In Q2 2013 Are Sub-$200 Phones
Shipments of Phablets (smartphones between 5-inch to 6.99-inch screen size) shipments have increased by 17 times annually and now accounts for 30% of the smartphone shipments in Q2 2013
Shipments of smartphones between 3.49-inch and 4.99-inch has also increased significantly over the past few quarters and now account for the majority of smartphone shipments for the quarter Smartphones less than 3.49-inch has dropped massively and now accounts for only a small portion of the smartphone shipments.
Windows Phone has taken 5.6% market share in India, largely on the strength of Nokia’s smartphones, which had 5% of the market.

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Top 5 Smartphone vendors- Micromax is closing in on Samsung for no.1 spot, riding the ‘phablet’ wave
– Samsung continues to lead the smartphone market with 26% market share, driven by shipments of low end Samsung Galaxy Star and other mid range smartphones. Samsung’s massive aggressive marketing in the country has a significant contribution to this.
– Micromax has 23% smartphone market share and has crossed 2 million shipment units, significantly driven by Micromax’s Canvas series.
– Karbonn has 13% smartphone market share which has apparently seen an uptick in its A series and the newly launched Titanium range of smartphones.
– Nokia has 5% smartphone market share which has apparently seen an increase in Nokia Lumia 520 sales volume. Dedicated advertising and marketing push towards positioning Lumia phones as a quicker and cooler replacement to other brands is working in its favor. Nokia is still feel the growth is still very slow as compared to other players, primarily due to the Windows Phone 8 operating system which is is slowly filling all the major gaps in the software but is still quite nascent as compared to its iOS and Android counterparts.
– Sony also has 5% smartphone market share and IDC says Sony’s mid tier phones and low end dual SIM phones are doing well.

Smartphones Market Share Q2, 2013

The key for growth in India, as with most emerging markets, is low-priced phone equipped with a large screen and dual SIM slots. The dual SIM phenomena, which had accelerated the growth of local vendors in feature phone, turned to dual SIM smartphones flooding the Indian market. Topped with an attractive sub $200 price tag, these smartphones are proving highly attractive

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Microsoft buys out Nokia! (Finally)

Posted in Mobile Devices and Company Updates by Manas Ganguly on September 3, 2013

There then, didn’t i say it?

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In an earlier post dated July 2012, i had quoted Eldar Murtazin on a supposed rumour of Microsoft buying out Nokia. The moment has arrived as Microsoft has announced take over of Nokia’s portfolio of smartphones, patents and services to mount a more formidable challenge to Google and Apple.

The 5.44 billion euros ($7.2 billion) deal announced late Monday marks a major step in Microsoft’s push to transform itself from a software maker focused on making operating systems and applications for desktop and laptop computers into a more versatile and nimble company that delivers services on any kind of Internet-connected gadget. The proposed price consists of 3.79 billion euros ($5 billion) for the Nokia unit that makes mobile phones, including its line of Lumia smartphones that run Windows Phone software. Another 1.65 billion euros ($2.2 billion) will be paid for a 10-year license to use Nokia’s patents, with the option to extend it indefinitely. It will represent the second most expensive acquisition in Microsoft’s 38-year history, ranking behind an $8.5 billion purchase of Internet calling and video conferencing service Skype.The operations that are planned to be transferred to Microsoft generated an estimated 14.9 billion euros, or almost 50 per cent of Nokia’s net sales for the full year 2012.

To me, the marriage has been in the making for long – ever since Stephen Elop joined Nokia as CEO in 2010. Elop has been single handedly instrumental in aligning Nokia to Microsoft – at the cost of cutting out other platforms from Nokia – Meego in particular which was a very promising platform. The fabled act of putting “all eggs in one basket” i.e concentrating all of Nokia’s high end effort on the Microsoft platform bypassing Android as an option. The Lumia series of Nokia smartphones has not exactly set the Nokia Cash registers on fire. Elop also worked out to lean out Nokia moving out 20000 workforce/jobs. Nokia has lost more than 5 billion euros in nine quarters as Elop’s comeback bid hasn’t reversed market-share declines. Through Elop’s tenure, Nokia’s basic phones have been losing users to Chinese rivals and new smartphones have failed to stop shoppers from picking up Samsung and Apple devices. Nokia Smartphone business hasn’t been performing very well. Nokia which sold close to 28 million smartphone handsets not long ago in December 2010, has managed to sell only 7.4 million Lumia handsets in Q2 2013. That said, Nokia’s low end handset business and its Asha platform hasn’t been performing well.Stephen Elop sets out from Nokia and into Microsoft to possibly see the acquisition to a closure by early 2014.

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Microsoft bets on Nokia for its formidable patents and the hardware edge that Nokia brinsg to the table. Microsoft’s attempts at making its own device (Surface & Surface RT) have been less then spectacular given the $900million write off for last year.

My take on the take over – (It hasnt changed over the past 4 years)
Both Nokia and Microsoft really missed the boat in terms of smartphones, and it is extremely difficult to claw your way back from that. The question is whether combining two weak companies will get you a strong new competitor. It’s doubtful.

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