Date: 25/03/2011

Mobile phone sales revenues in India to reach Rs 350.05 billion in 2016

India, the world's second largest market for mobile phones is forecasted to become even larger market with unit shipment of 208.4 million in 2016 at a compound annual growth rate (CAGR) of 11.8 per cent from 2010 to 2016, according a market study. Market researcher Frost and Sullivan's latest study finds the mobile handset market's revenues in India soar from Rupees 255.91 billion in 2010 to Rupees 350.05 billion in 2016.

The smartphone market had unit shipment of 2.9 million in 2010 and anticipates this to grow to 29.4 million in 2016.

"For the mobile handset market, the rural market offers exciting prospects due to its significant uptake of feature phones," says Frost & Sullivan. "The rural and semi-rural markets accounted for 65 per cent of sales for most Indian manufacturers in FY2010."

The market is also witnessing the influx of a new class of affordable handsets, which are classified as 'smartphone-like' devices, with touch screens and other smartphone features.

"In the next five years, the revenue share of smartphones in the mobile handset market is expected to rise steadily, as an increasing number of participants are targeting this space for higher margins," notes Frost & Sullivan. "This trend is likely to persist, as numerous handset manufacturers are strategizing to deploy more smartphone models in their portfolio."