market research report : smartphone market in india india 2012

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Smartphone Market in India Smartphone Market in India July 2012

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For the complete report, get in touch with us at : [email protected] A Smartphone is a cellular phone with better, faster and enhanced operating abilities and performance which was earlier restricted to Personal Digital Assistant (PDA) and portable computers. Smartphones are rapidly replacing feature phones in India. With the number of vendors offering wide variety of smartphone devices, consumers are spoilt for choices with diverse features at different price. The report begins with ‘Introduction’ section covering overview of smartphone which provides basic idea of the technology and brief details regarding the prime features of smartphones. The ‘Smartphone Overview’ section elaborates global & domestic market state of smartphone business. It is accompanied by a plethora of qualitative and statistical information regarding the state of smartphone in major countries such as, smartphone shipments by various vendors and their market share and other related information. It is followed by ‘Drivers & Challenges’ section elaborating the major furtherance & impediments for smartphones in India. Both the ‘drivers’ and ’challenges’ are equally stressed upon to provide clear idea regarding the probable obstacles and rewards in the line of business and help vendors take necessary measures. The report continues with ‘Market Opportunity’ section where potential application areas for smartphones in India are elaborated. Each of the opportunity areas are accompanied by statistical data for detailed analysis. Next the recent developments and prominent trends in the market are illuminated under ‘Market Trends’ section. In the ‘Smartphone Player Profiles’ section, the key smartphone manufacturers are profiled. The section begins with a feature-price trade-off matrix for smartphone players in the country. It continues with information such as corporate & business highlights covering operational & recent information regarding each company’s contact information, location, key product and service offerings and key contacts for each of the players. It also provides financial performance for a period of time including revenue and profit, key ratios, financial summary and key financial performance indicators. Key business segment and key geographic segment for each player are provided as well to provide further clear idea regarding the companies. It also consists of a prices and specifications table for the latest smartphone devices available in India. The report concludes with the section ‘Strategic Recommendation’ which is derived after a comprehensive analysis of the market state & scope. It suggests key strategic moves which can help enhance and accelerate adoption of smartphones in India.

TRANSCRIPT

Page 1: Market Research Report : Smartphone market in India India 2012

Smartphone Market in IndiaSmartphone Market in India

July 2012

Page 2: Market Research Report : Smartphone market in India India 2012

Executive Summary

Market

Smartphone shipments in India is expected to reach ‐mn units by 20‐‐, more than double of the present figure

In the Q1 20‐‐, smartphone segment in India achieved a quarterly growth of x1% despite of global decline of smartphone sales by x2%

Drivers:

Drivers &

Amongst the smartphone platforms in India, x3 has taken the lead followed by x4

Challenges:

Low Penetration in Suburban and Rural Areas

Increase in Disposable Income and Changing Consumer BehaviourDrivers & 

Challenges Security and Privacy Concerng g

Introduction and Availability of Next Generation Cellular Networks Constant Reduction in Prices

Market Trends

Multi‐Core Processor

High Resolution Touch Screen Display

Smartphone on Contract

Rise of the Phablets

SmartphonePlayer Profile

Major Players

Apple Inc. HTC Corporation Research in Motion

2SMARTPHONE MARKET IN INDIA 2012.PPT

yLG Electronics Nokia India Samsung India

Page 3: Market Research Report : Smartphone market in India India 2012

•Introduction

S t h M k t O i•Smartphone Market Overview

•Drivers & Challenges

•Market Opportunities

•Market Trends

•Smartphone Player ProfilesSmartphone Price and Specifications

•Strategic Recommendations

•Appendix

3SMARTPHONE MARKET IN INDIA 2012.PPT

Appendix

Page 4: Market Research Report : Smartphone market in India India 2012

Smartphones are cellular phones with wide variety of features capable of performing advanced operations 

• A Smartphone is a cellular phone with better, faster and enhanced operating abilities and performance which earlier was restricted to Personal Digital Assistant (PDAs) and portable computers only

Smartphone– Overview 

g ( ) p p y Smartphones are best known for their fast processing speed, high speed internet connectivity and the availability of numerous utility features including ability to read and write some PC file formats right from the mobile device

• Featurephones often have some features resembling Smartphones, but in terms of processing power and multimedia capability, they are a notched down version of the latter

• Smartphones manufacturers are rapidly adopting touch screens over keypads for user input and navigation

Smartphone Features Description

• D1• D2F1

F2 • D3

F3 • D4

4SMARTPHONE MARKET IN INDIA 2012.PPT

F4 • D5

Page 5: Market Research Report : Smartphone market in India India 2012

Smartphone shipments in India is expected to reach z1 mn units by 20‐‐, more than z2 times of the figure in 20‐‐

Market Overview – India• Robust growth can be witnessed in the smartphone segment in India which is one of the largest market for mobile phones in the world

h h h d l h f % d f l b l d l f h l b % In the Q1 20‐‐, the segment achieved a quarterly growth of a1% despite of global decline of smartphone sales by a2%

Poor performance of Indian currency against dollar has led to increase in smartphone prices by a3%, which primarily affected the sales of a4 segment

• A5, a6, a7 and a8 held the majority market while a9, a10, a11 & others held the rest of the market Leading from the front Samsung has captured around a12% of the smartphone market in the country with a13 offerings and its own Leading from the front, Samsung has captured around a12% of the smartphone market in the country with a13 offerings and its own bada a14 platform, followed by Nokia with a15% market share and RIM with around a16% market share

HTC doubled its smartphone sales from the previous year to acquire the market share of around a17% in 20‐‐

• Amongst the smartphone platforms, Android has taken the lead followed by Nokia’s Symbian OS platform

Mn UnitsZ%

Smartphone ‐Market Size (Shipment) Smartphone Platform ‐Market Share (20‐‐)

n4n1 n7n5Z%

YX

WV

U

n3

n8n6

5SMARTPHONE MARKET IN INDIA 2012.PPT

20‐‐20‐‐20‐‐20‐‐20‐‐n2

Page 6: Market Research Report : Smartphone market in India India 2012

SAMPLE Smartphone Vendor Analysis – Global Top 4

Samsung •V2

•V3

•V1

Apple •V5

•V4

Apple V5•V6

•V7

Nokia•V8

•V9

RIM •V11

•V10

6SMARTPHONE MARKET IN INDIA 2012.PPT

•V12

Page 7: Market Research Report : Smartphone market in India India 2012

Drivers & Challenges – Summary 

Drivers

Increase in Disposable Income andIncrease in Disposable Income and Changing Consumer Behaviour

Introduction and Availability of Next Generation Cellular Networks

Challenges

Low Penetration in Suburban and Rural Areas

Constant Reduction in Prices

Advanced Features, Applications and Digital Contents

Security and Privacy Concern

Colossal Wireless Subscriber Base

7SMARTPHONE MARKET IN INDIA 2012.PPT

Page 8: Market Research Report : Smartphone market in India India 2012

SAMPLE Enterprise mobility is witnessing major growth in India leading to enhanced opportunity for smartphones

Opportunity in Enterprises

• Enterprises with highly distributed workforce embrace mobile computing platforms for efficient operation & timely communicationcommunication  B1 and b2 industries top the list of enterprise mobility adopters followed by b3, b4 and b5 industry in India It also holds major potential within industries including Healthcare, Defense, Aviation, Energy Utility and Telecom, wherein advancement in technology will stimulate the adoption rates 

•More and more smartphone solutions are being launched for enterprises, offering world class POS (point‐of‐sales) solution for mobile workforce

• Also enterprises bound by time‐constraints utilize mobile devices for commercial transactions for not only selling but also for purchase activities

Enterprise Mobility – Market Size

INR bne

mn

Mobile Workforce – India (Growth and Size)

F%d

cb

a

L%k

j

ih

g

8SMARTPHONE MARKET IN INDIA 2012.PPT

20‐‐20‐‐20‐‐20‐‐20‐‐ 20‐‐20‐‐20‐‐20‐‐20‐‐

Page 9: Market Research Report : Smartphone market in India India 2012

SAMPLE Market Trends (‐/‐)

• T1• T2• T3

M1T3

• T4• T4• T5M2

• T6• T7• T8

M3

• T9• T10

T11M4

9SMARTPHONE MARKET IN INDIA 2012.PPT

• T11

Page 10: Market Research Report : Smartphone market in India India 2012

SAMPLE Feature‐Price Trade‐Off Matrix for Smartphone Players in India

p11p10

p8

p9

p5

atures p6p4

p3

p8p5

p7

S1

Fea

p1

p2S2

Price

• q1 and q2 largely provide expensive premium products, while the former has no offering in the entry level smartphone segment, the latter has introduced few in recent times

• Some players, such as q3 and q4, offer vast number of products belonging to multiple price segment and having variable features‐set, thus despite of having one of the highest priced and feature reach smartphones, they are 

10SMARTPHONE MARKET IN INDIA 2012.PPT

positioned lower in the matrix• q5 players compromise on some features to offer smartphones at much lower cost than the established q6 companies

Page 11: Market Research Report : Smartphone market in India India 2012

SAMPLE Public: Foreign Company – Company 1 (1/3)

Company Information Offices and Centres – India 

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Products and Services

Ticker Symbol

Stock ExchangeIndia Head Office

Place 

Key People

Products and Services

Category Products/Services

N D i tiC1 • S1

Name Designation

Person 1 D1 

Person 2 D2 

Person 3 D3 

11SMARTPHONE MARKET IN INDIA 2012.PPT

Page 12: Market Research Report : Smartphone market in India India 2012

SAMPLE Public: Foreign Company – Company 1 (2/3)

i i l S h K iFinancial Snapshot Key Ratios

Net Profit/LossTotal IncomeRevenueINR mn

ProfitINR bn

s

Particulars y‐o‐y change (2012‐11)

2011 2010 2009 2008

Profitability RatiosOperating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%

020‐‐

0

r

20‐‐20‐‐

q

20‐‐

p

Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%

Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62%

Return on Equity 7.60 60.51% 52.91% 34.43% 47.18%

Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96%

Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13%

Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%

Financial Summary 

• The company incurred a net profit of INR  ‐ bn in FY 20‐‐, as compared to net profit of INR ‐ bn in FY 20‐‐

• The company reported total income of  INR ‐ bn in FY 20‐‐, as compared to INR bn in FY 20

Return on Fixed Assets 28.31 319.77% 291.46% 227.97% 346.05%

Cost RatiosOperating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%

Administration costs (% of Sales)

0.49 10.10% 9.61% 9.11% 7.41%

Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%compared to INR ‐ bn in FY 20‐‐

• The company earned an operating margin of ‐ per cent in FY 20‐‐, an increase of ‐ percentage points over FY 20‐‐

• The company reported debt to equity ratio of ‐ in FY 20‐‐, a decrease of ‐ per cent over FY 20‐‐

(% )

Liquidity RatiosCurrent Ratio ‐12.79% 1.27 1.46 1.95 1.90

Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18

Leverage RatiosDebt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91

Key Financial Performance Indicators

Indicators Value (28/06/2012)Market Capitalization (INR bn) A 

Total Enterprise Value (INR mn) B EPS (INR)

Debt to Capital Ratio NA NA NA NA NA

Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67

Efficiency RatiosFixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41

Asset Turnover 24.95% 1.83 1.46 1.21 1.32

Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46

12SMARTPHONE MARKET IN INDIA 2012.PPT

EPS (INR) C PE Ratio (Absolute) D

Improved Decline

Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09

Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51

Page 13: Market Research Report : Smartphone market in India India 2012

SAMPLE Public: Foreign Company – Company 1 (3/3)

Key Business Segments Key Geographic Segments

k5k1 k4k3k2 k8k7k6

Key Information

20‐‐20‐‐20‐‐20‐‐ 20‐‐20‐‐20‐‐

Description  Details

• C2 designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players

Overview • It also sells software, services, peripherals, networking solutions, and third‐party digital content and applications worldwide

• C3 operates in India via its subsidiary, C4

13SMARTPHONE MARKET IN INDIA 2012.PPT

Page 14: Market Research Report : Smartphone market in India India 2012

SAMPLE Private: Domestic Company – Company 2 (1/3)

Company Information Offices and Centres – India 

India Head Office

Tel No.

Fax No.Place   

Products and Services

Website

Year of IncorporationIndia Head Office

Key People

Products and Services

N D i ti

Category Products/Services

Name Designation

Person 1 D1 

Person 2 D2 

Person 3 D3 

C1  •S1

14SMARTPHONE MARKET IN INDIA 2012.PPT

Page 15: Market Research Report : Smartphone market in India India 2012

SAMPLE i i l S h K i

Private: Domestic Company – Company 2 (2/3)

Financial Snapshot Key Ratios

Profit / Loss

Total Income

W

Total IncomeINR mn

ProfitINR mn 

Particulars y‐o‐y change (2012‐11)

2011 2010 2009 2008

Profitability RatiosOperating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%

V

U

Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%

Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62%

Return on Equity 7.60 60.51% 52.91% 34.43% 47.18%

Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96%

Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13%

Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%

Financial Summary 

020‐‐20‐‐20‐‐

U

20‐‐

T

0Return on Fixed Assets 28.31 319.77% 291.46% 227.97% 346.05%

Cost RatiosOperating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%

Administration costs (% of Sales)

0.49 10.10% 9.61% 9.11% 7.41%

Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%

• Company incurred a net profit of INR ‐ bn in FY 20‐‐, as compared to net profit of INR ‐ bn in FY 20‐‐

• It reported total Income of  INR ‐ bn in FY 20‐‐, as compared to INR ‐ bn in FY 20‐‐

Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%

Liquidity RatiosCurrent Ratio ‐12.79% 1.27 1.46 1.95 1.90

Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18

Leverage RatiosDebt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91

• The company earned an operating margin of ‐ per cent in FY 20‐‐, a decrease of ‐ percentage points over FY 20‐‐

• The company reported debt to equity ratio of ‐ in FY 20‐‐, an increase of ‐ per cent over FY 20‐‐

Debt to Capital Ratio NA NA NA NA NA

Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67

Efficiency RatiosFixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41

Asset Turnover 24.95% 1.83 1.46 1.21 1.32

Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46

15SMARTPHONE MARKET IN INDIA 2012.PPT

Improved Decline

Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46

Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09

Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51

Page 16: Market Research Report : Smartphone market in India India 2012

SAMPLE Private: Domestic Company – Company 2 (3/3)

Key Recent Developments

Description  Details

Overview

•O1 is a leading player in technologies including real‐time bidding, data marketplaces, big data, algorithms and targetting in o2

• Its engine is manned by over ‐ people across o3, o4, o5, o6, o7

• The company works closely with top publishers across the global platform including o8 and o9

• It constitutes an exclusive reseller of o10’s premium inventory in India, Thailand, Partners and Investors Indonesia and Phillipines

• It also has partnership with technology vendors namely o11, o12, o13, o14• Its list of investors include names such as Nexua Venture Partners, Helion Venture Partners, Norwest Venture Partners and Draper Fisher Juvertson,   

16SMARTPHONE MARKET IN INDIA 2012.PPT

Page 17: Market Research Report : Smartphone market in India India 2012

SAMPLE Smartphone Price and Specifications (1/4)

Brand Model Price (INR) Operating System Processor RAM 3G Wi‐Fi GPS

Y 56,599 X 1 GHz Dual‐Core 512 MB

1

R1R2

R3R4

17SMARTPHONE MARKET IN INDIA 2012.PPT

Page 18: Market Research Report : Smartphone market in India India 2012

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18SMARTPHONE MARKET IN INDIA 2012.PPT

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