A salesman arranges Micromax mobile handsets at a shop in New Delhi.

Low-
cost mobile phones made up for 40% of handset sales between April and June
this year.

India’s telecom market has been fertile ground for foreign mobile phone makers like
Nokia, Sony and Samsung since the beginning of its telecom revolution circa 1998. In a
cost-conscious market like India, it was only a matter of time before local and lesser
known manufacturers jumped onto the mobile phone bandwagon, too.

Going by an IDC report “emerging vendors” – like Micromax, Maxx Mobile, Lava, Rage
Mobile, Spice Mobiles and G’Five – are fast-establishing themselves on the Indian
scene.

India’s mobile handsets sales in the second quarter of this year saw the number of cell
phones purchased reach a whopping 38.63 million – a 6.3% increase on the previous
quarter, according to the report released by the market intelligence and advisory firm
yesterday.

Most notably, the market share for handsets made by new vendors saw a steep rise
from below 1% in the first quarter of 2008 to 33% in the quarter ending June 30, 2010.
New vendors are described at those that have been in the market less than three years.

Most local and low-cost cell phone manufacturers have gained from customizing their
products for the rural market.

“They have been very innovative in terms of loading their phones with a lot of
applications – like FM radio and dual SIM card function – even as they have maintained
a pricing structure which is very attractive to the Indian buyer,” Vishaal Bhatnagar, IDC
India spokesman said.

Between April and June this year, 40% of the handsets purchased were priced at below
$50, according to the firm.

AFP/Getty Images
A cobbler talks on his cell phone at his shop in Mumbai.
With 70% of India’s population living in villages and the teledensity in its urban centers –
like Delhi, Chennai and Mumbai – having reached saturation point, customizing
handsets for first-time buyers seems like a smart strategy.

Vikas Jain, business director at Micromax Informatics Ltd., says the company’s main
customer base lies in rural India. Six in every 10 handsets that it sells are sold in India’s
villages.

“One of our biggest achievements is that we were the first ones to develop a phone that
has a 30-day stand-by battery,” Mr. Jain said. “Our founder got the inspiration for it from
a group of villagers standing in the afternoon heat waiting to get their cell phones
charged from a car battery that was mounted on a bicycle.”

The X1i Plus, which costs 2,000 rupees, or about $40, is one of Micromax’s hottest
selling phones. The company presently has 34 models, costing between 1,500 rupees
and 13,000 rupees, in the market.

“The teledensity in first time buyer, rural markets is sparse at about 25%. But, it is the
area where one can generate growth,” Mr. Bhatnagar said. “So, a phone which has a
torchlight or a long battery life or one that runs on solar electricity, is instantly a practical
attraction in a place where there is a scarcity of electricity.”

Bharti Enterprises has been the newest entrant in the low cost handset market. It
launched a range of mobile phones under the brand name “Beetel” on Sept. 19, priced
between 1,750 rupees and 7,000 rupees.
Micromax mobiles have build their reputation in a very short time-span. These mobiles are targeting the
masses through their strategies. The Company has priced these mobiles at very low cost and has loaded
them with all essential features.

Normally the high profile features like advanced camera, internet browsing, Bluetooth, dual sim
functionality come at a very high rate. But Micromax mobiles are available at very low rates and that too
loaded with all these features. This is a branded phone and competes with established brands.

Micromax mobile is a heavily advertised mobile phone and deliver good performances. This is the
reason that these phones are so much in demand. Earlier touch screen facility was for a few high-end
mobile phones. This is not the case with Micromax phones. Touch screen facility is available at low price
in these mobiles.

Many people want to assess the performance of the mobile phone; therefore they purchase a second-
hand Micromax mobile. They do not rely on quality easily, so they purchase a used Micromax phone and
later on buy a brand-new handset. This used phone is purchase to build trust in the brand before final
purchase.

Some people can't afford a new Micromax mobile. In that case, they can purchase a second-hand
handset with all latest technology uploaded in it. There are many people who can fulfill their desire to
get the mobile phone with all latest features through second-hand Micromax phone.

It is well within their range and fulfills their wishes. A used Micromax phone fulfills the proud-factor in
them at very low cost. If a brand-new mobile costs so low than a second-hand phone will cost still lesser.
So it's easily afforded by everyone.

Micromax mobiles are high in features and low in cost. These phones deliver full value for money and
are long lasting mobile phones. That is these don't break so easily. There are many service centers
available for support. In case, the user has some problem, then he can contact the service center for
maximum support. Users can purchase one without any doubts.