4G Handset Market in India

IJRECE VOL. 4 ISSUE 3 JULY.- SEPT. 2016 ISSN: 2393-9028 (PRINT) | ISSN: 2348-2281 (ONLINE) Race to the top- 4G handset market in India HTC and SONY are absent in the low end 4G LTE handset market. What is the way ahead for them? Navdeep Singh India is preparing itself for the 4G revolution that will help Indians to connect to the world in a faster, smarter and efficient way. Indian handset market today is flooded with several products ranging from low end feature phone to high end smart phones. However, the growth in the handset market has not been able to inspire well-known brands like HTC and Sony to enter into the low price 4G enabled handset segment. Before we venture into the discussion, let us have a close Price Class share of India view of Indian handset market. 0-7k The high price segment 6% 3% 7k-8k handset market is largely 8% dominated by Samsung, HTC 8k-10k and Sony. Samsung rules this 12% 46% 10k-15k segment, closely followed by HTC. Samsung is also leading 15k-22k 14% the mid-range price segment 12% 22k-30k with HTC and Sony a distant 30k and second and third respectively. above Market share of Brands in high price segment ( in %) Samsung HTC Sony Others 20k - 30k 50.4 15.9 15.7 18 15k - 20k 56.5 15.8 13 14.7 10k - 15k 37.4 16.5 12.3 33.8 INTERNATIONAL JOURNAL OF RESEARCH IN ELECTRONICS AND COMPUTER ENGINEERING A UNIT OF I2OR 120 | P a g e IJRECE VOL. 4 ISSUE 3 JULY.- SEPT. 2016 ISSN: 2393-9028 (PRINT) | ISSN: 2348-2281 (ONLINE) However, Indian consumers are price sensitive and thus we see that around 72% of the sale of handsets occurs in the low price segment which is dominated by Samsung, Micromax and Lava. But on the other hand there are very few players with 4G enabled-handsets in this Market Share in low price segment Samsung Micromax Lava Others 40.7 17.1 8.7 10.5 18.3 47.8 25.4 9.5 23.4 55.9 7.6 35.1 0 < 7k 7k < 8k 8k < 10k segment. From a marketing point of view this is the right time for HTC and Sony to focus on C1 and C2 social class as their target group to penetrate in this competitive segment. Although the price sensitive Indian market currently has a wide range of handsets supporting 4G-LTE, yet these handsets are available at a price greater than Rs. 10,000. A few Handset Price ( in INR) of the models of handsets that are currently available in the market in the Xiaomi Redmi Note 4G 8,000 Xiaomi Redmi 2 7,000 price range have been listed. Samsung Galaxy Core Prime 9,800 Xiaomi, the Chinese mobile Moto E 8,000 Lenovo A7000 9,000 manufacturer is playing big in the Lenovo A6000 8,300 Indian market with Xiaomi Redmi Note Lenovo A6000+ 7,500 4G and Xiaomi Redmi 2. Micromax has Microsoft Lumia 638 8,300 also been making headlines with Micromax Yu Yureka 9,000 Micromax Yu Yureka and Yu Yuphoria. Micromax Yu Yuphoria 7,000 Xolo LT900 8,000 Understanding the future prospects of Xolo LT2000 10,000 the market, Samsung too is moving ahead to grab a slice of the lucrative low price 4G handset market by introducing Samsung Galaxy Core Prime. Going further, Digital India is the buzzword not just in India but even in western part of the world, thanks to our honourable PM, Mr Modi. Having said that, IoT will play a crucial link to INTERNATIONAL JOURNAL OF RESEARCH IN ELECTRONICS AND COMPUTER ENGINEERING A UNIT OF I2OR 121 | P a g e IJRECE VOL. 4 ISSUE 3 JULY.- SEPT. 2016 ISSN: 2393-9028 (PRINT) | ISSN: 2348-2281 (ONLINE) the success story of this ambitious project of Indian Govt. As we know IoT i.e. Internet of Things would require not just connectivity between machines but also high-speed Internet enabled Handsets for seamless connectivity. But considering the fact that the fast-growing middle-class cannot afford high-end handsets, we need affordable high speed enabled handsets in the price category of below 10K. So looking at the future, the demand forecast for such handsets is very bright. HTC and Sony can tap this market. HTC and Sony are already doing great in the high price segment giving good competition to Samsung. But they are absent in the low price 4G LTE handset market. It may be a part of their strategy and if it is so, it seems to be a lost opportunity. Assuming that the 4G tariff plans will be equivalent to 3G plans and the introductory promotional schemes would drive the Indian subscribers to 4G network, it definitely would be a setback for the HTC and Sony as the early movers advantage would give their competitors an edge. What is the way ahead for them? Looking at the recent trends in the market the low end 4G LTE segment would soon be cluttered. More the delay in entering this segment, higher would be the competition for them from those who have already consolidated themselves keeping in mind the potential 4G growth in India. It is advisable that HTC and Sony make a move soon, else ‘The biggest regrets are not for the things we have done but for the things we haven't done’. INTERNATIONAL JOURNAL OF RESEARCH IN ELECTRONICS AND COMPUTER ENGINEERING A UNIT OF I2OR 122 | P a g e .

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