The tremendous response to the first smart3 phone- the Garmin-Asus M10 clearly indicates that

consumers today are looking for the right smartphones that are packed with navigation, connectivity
and lifestyle features

http://www.financialexpress.com/news/nokia-firm-on-smartphone-plans-in-india/562001/
Nokia India has said it will continue to increase its footprint in the smartphone segment in
India in the year 2010, contrary to recent reports in the international media that the company
would reduce its smartphone portfolio. Vineet Taneja, director marketing, Nokia India, said,
“Going forward, we will continue to drive our smartphones into new markets with a very
focused and streamlined portfolio. Nokia is today the clear numero uno in the smartphone
market, with close to 35% market share globally in the third quarter of 2009.”

India shipped 4.8 lakh units of smartphones during Q3 CY2009. The top three smartphone
vendors during Q3 of calender 2009 were Nokia, HTC and RIM. “Together, these vendors
had a share of nearly 90% of the India smartphones market in terms of unit shipments during
the period July-September 2009,” said Naveen Mishra, manager, telecommunications
research practice, IDC India. However, their individual market share in the smartphone
category and the same as a percentage of their revenue could not be estimated. According to
IDC, the India mobile handset market recorded shipments of 100.74 million units in the 12-
month period ended September 30, 2009, thereby recording a year-on-year growth of 1.5%
(over the 12-month period ended September 30, 2008). Nokia was reported to be looking at
halving its smartphone portfolio next year to reduce ‘unnecessary differentiation’ and
maximise the effort behind a few key models. According to Gartner, Nokia’s market share in
the worldwide smartphone segment reached an all-time low in the third quarter of 2009, at
39%, compared to 45% in the second quarter of 2009. At the same time, the market share for
RIM, HTC, Apple and Samsung increased.

Smartphones contributed 1.9% to the overall global handset market in the September 2009
quarter, as against 2.8% in the previous quarter.

Nokia has renewed its entire range of converged devices including Nokia N97 mini (N900,
N97, N97 mini, N86). It is also expanding smartphone capabilities and features into mid-
range, such as the Nokia 5230. “We believe 2010 will see us further increasing our footprint
in smartphones. Symbian, our choice for smartphones, continues to be the world’s market
leading smartphone platform, accounting for 50.3% of all smartphones globally. We also
have measures in place to push smartphones down to new price points globally,” added
Taneja.

Nokia’s overall market share in Q3 of this year declined 1.5% points year-on-year due in part
to component shortages that may...
19 Sep, 2010, 12.38PM IST,PTI

Nokia expects 3G to double

smartphone market share in India
LONDON: Handset-maker Nokia today said that with the launch of 3G mobile services and people opting to go
for replacement of old devices, the smartphone market in India is set to more than double in the next two years.

According to technology-focused analyst house Canalys, the Indian smartphone market was 2,126,140 units in
the 2009 calendar year.

"The market for smartphones will be more than double in two years as two things come together at the same
time. First, 3G, which is going to happen by the first quarter next year. The second one is the replacement cycle,"
Nokia India MD D Shivakumar said.

Over 100 million people who bought phones in the last three years are likely to go for replacement of their
devices at that time.

Nokia, which is the market leader with an over 50 per cent market share in India, has given a clear indication that
it will focus on the lucrative segment globally as well as in India.

During its annual technology event earlier last week, Nokia Vice-President (Markets) Niklas Savander,
announcing the launch of the company's latest smartphones, said, "Nokia sells 260,000 smartphones every day
globally... We plan to sell 50 million of the new smartphones post their launch."

Analysts feel that Nokia is losing out to Apple and Research in Motion's Blackberry in the smartphone segment.

Though Nokia claims they are still the leaders, it was feeling the heat in the smartphone segment and was trying
to revive its portfolio.

During its annual Nokia World event held here this year, Nokia unveiled three new devices --- E7, C7 and C6 ---
all using the latest Symbian software.

The three devices, along with the much-anticipated N8, will form a portfolio of phones running on Nokia's updated
operating system .

"All the devices are set to enter the Indian market by this year," Shivakumar added.

Besides smartphones, Nokia will also come up with a range of dual-SIM devices.

Asked whether Nokia was forced to come out with dual-sim phones on account of the runaway success of
domestic players offering features-rich dual-SIM mobile phones, Shivakumar said "The dual SIM market in India
has picked up because of tariff arbitrage as the new operators are offering lower call rates. Launching dual-SIM
doesn't mean that the brand got weaker or Nokia's business model was wrong."

Talking about the influx of low-cost Chinese handsets in the Indian market, Shivakumar said the market has
already stabilised and most of the players are already "losing steam."

http://webcache.googleusercontent.com/search?q=cache:wRzGYvY7-
y0J:dailyconnect.in/2010/09/07/gil-2010-india-the-global-community-of-growth-innovation-and-
leadership/+smartphones+in+india+in+2016&cd=24&hl=en&ct=clnk&gl=in

GIL 2010: India, The Global Community of Growth, Innovation and

Leadership

Posted by Editor on 9/07/10 • Categorized as Reports

Frost & Sullivan, recently concluded their 2nd annual flagship event GIL 2010: India - The
Global Community of Growth, Innovation and Leadership, at The Leela Palace, Bangalore.
The Congress, besides focusing on CEOs perspective on growth, had specific industry think
tank sessions and several panel discussions, that were held parellely. The Information and
Communication Technologies think tank focused on the 3G  Transforming the
Communication Ecosystem

India has witnessed the highest growth rate of mobile subscribers, registering 49 percent in
the period 2009-2010 and with the advent of 3G, the telecom industry and mobile services are
only expected to see an upsurge. The 3G/BWA spectrum and the advent of WiMAX and
LTE-based 4G technologies will play a crucial role in shaping the broadband industry in
India. The Indian mobile market is still voice-intensive and is the operators  major source of
revenue. In this context, voice-based 3G services will see greater acceptance.

According to Anand Rangachary, MD, Frost & Sullivan, South Asia, Middle East and North
Africa, The pricing wars in India have put pressure on ARPUs. This coupled with high churn
rates and falling voice tariffs means that a wireless data strategy will be essential for
operators going forward.

A successful 3G business model would require a portfolio approach to 3G services and

expanding the set of applications and services, exploiting new trends that expand the
addressable market and ARPU potential and adopting a clean-slate approach to avoid
repeating the mistakes of other developed market operators. The ability to provide a richer
portfolio of applications and services will enable improvement in data ARPUs.

Introduction of 3G/BWA has opened a huge market for equipment vendors, content
providers, and smartphone providers. Smartphones are changing consumer behavior like
never before by enabling consumers to access the Internet via mobile devices. The
smartphones volume for CY 2009 was 2.4 million units; growing at a CAGR of 39.20
percent for the period FY 2010 - 2016. The success of the smartphone as a consumer device
has fundamentally improved the ease of use and access of 3G services. The 3G opportunity
increases with the options on handsets, dongles and other devices. Emergence of third-party
application stores that provide greater revenue share to developers and enable consumers to
access a greater variety of applications would be a crucial tipping point. The operators are
evaluating partnerships, outsourcing opportunities to rollout their network and services and
this provides a tremendous opportunity to the equipment providers.

The VAS market for 3G is expected to be USD 1260 million; and will grow at a CAGR of
21.70 percent for the period FY 2010 - 2016. Applications like video conferencing, gaming,
social networking, presence and instant messaging, mobile TV and convergent
communications, which would be consumer centric services, would show increased traction.
The adoption would be evident even amongst enterprises. Enterprise mobility is one such
area, especially, since enterprises are becoming increasingly aware of the mobility advantage
to their organization in terms of increasing productivity and decreasing operational cycles.
Operators who have data-centric state-of-the-art 3G networks will be best positioned to
capitalize on this emerging growth segment. Another potential area would be mobile
marketing and mobile advertising; though not very effective yet, marketers are anticipated to
spend increasing amounts of money on marketing.
The delay in allotment of the 3G spectrum to operators is a major hurdle to the rollout of
services in the country. Also, the Information and Broadcast (IB) ministry has sought that all
the telecom operators demonstrate that 3G services can be monitored, intercepted and
blocked before rolling out the services. This comes on the back of the fact that the
intelligence agencies currently do not possess capabilities to monitor data transfer through
any high-speed internet applications (Skype/video calls/Google Video chat). Besides, the
Government of India’s recent stance on the network security threats and the halt on fresh
orders, has affected the sales of not only the Chinese Equipment manufacturers but also the
Western vendors. While there are roadblocks in rolling out 3G, the fact remains that 3G
would bring the next wave of revolution and strengthen India’s economy in the near future.

Frost & Sullivan, along with the members and partners and the Strategic Partnership
Consortium a comprehensive alliance of visionaries, innovators and leaders, are all engaged
in sharing, inspiring and creating a continuous flow of new ideas and fresh perspectives,
which leverage innovation as a resource to help shape a better future for the growth of
attending companies.

Member companies and organizations include: IFS, Liveperson, BrighTalk, Lenos Software,
Schneider Electric, SCIP (Society of Competitive Intelligence Professionals), Underwriters
Laboratories Inc., Intel, Bulldog Solutions, Eloqua, and Global Spec, Inc. Through this
cooperative effort, participants within the GIL community are taking monumental steps
toward the development of a long-term growth strategy enabling them to effectively learn
how to leverage innovation as a resource to help shape a better future for their companies and
their careers.

For GIL 2010: India, HP was the Strategic Event Partner, 3M and DHL were the Event
Partners. Wall Street Journal was the Official Newspaper Partner, Mint, the National
Newspaper Partner and Outlook Business, the National Magazine Partner. Telecom Era,
Telecom Watch and Voice & Data supported the think tank as media partner.

If you are interested to know more on the Information & Communications Technology think
tank or other insights shared at GIL 2010: India, then send an e-mail to Caroline Lewis,
Corporate Communications, at caroline.lewis@frost.com, with your full name, company
name, title, telephone number, company e-mail address, company website and country.

Over the past year, the smartphone market has gone from being a premium product to a highly
segmented space. "You can now classify smartphones in four price ranges – sub Rs 6,000 (around
13 models), Rs 6,000 to Rs 10,000 (around 13 models), Rs 10,000 to Rs 20,000 (about 32 models)
and over Rs 20,000 (roughly 28 models)," says Sujay Misra, MD of AZ Research Partners . "This
market has nearly tripled in size when compared to last year."