Not only this, the study further revealed that India is second largest mobile handset market in the world after China and is expected to expand even more with shipment of 208.4 million units in 2016 with a Compound Annual Growth Rate (CAGR) of 11.8% from 2010 to 2016.
The report also said that in 2011, mobile market in the country is expected to witness almost three-folds increase in the number of vendors which will result in intense competition in pricing subsequently declining profit margins.
Intense Competition To Lead To Innovative Products
With such an intense competition it will become imperative for manufacturers to come out with innovative products. The report further said that manufacturers will find immense opportunities in rural and semi-rural markets in the next 3-4 years. The report also said that in case of smartphones, global cell phone manufacturers are focusing on building application stores and better the quality of their services in order to consolidate their market position.
It also said that with the introduction of 3G services in India and reduction of internet charges by telecom service providers, popularity of mobile data services will increase. At present mobile data services in the country do not enjoy the same popularity as that of voice services since 70% of the Indian population makes use of voice services.