SMARTPHONE INDUSTRIAL ANALYSIS

SHRADDHA GHODE(11)
PRAJAKT GUNJAL(12)
SANKET KASAR(22)
SAUMYA KOTIYAN(26)
PRIYANKA SADEKAR(45)
PRITI SAWANT(46)
VISHAL KUMAR(55)

INTRODUCTION

Rising demand for smartphones has affected various phone manufacturing companies
worldwide.
Impact on PCs & feature phones
Size and connectivity
Fastest selling gadgets in history
Phono sapiens
Nomophobia

MAJOR COMPANIES

DEMAND AND SUPPLY ANALYSIS

Flash Sales

Supply

Pre-Launch Offer
The I-phone model
Festive Offers

Demand
Shortage
I-Phone Model

MARKET SIZE
Total Industry Size: $376.7 billion
Total Annual Smartphone Shipments: 1.01 billion
Smartphone global penetration 28.02%
Worldwide users of smartphone 1.31 billion.
Users of mobile phones in India 76 million .
Indian penetration of smartphone only 17 %.

INDUSTRY GROWTH
Total Industry 5yr CAGR: 8.9%
Total Feature Phone Shipments
5yr CAGR: -6.8%
Total Smartphone Shipments
5yr CAGR: 46%

PRICE DISCRIMINATION

EXAMPLES FROM THE SMARTPHONE INDUSTRY

GOOGLES ANDROID ONE :
INTRODUCED MAINLY FOR THE LOW INCOME GROUP IN INDIA
ANDROID ONE PRICE US $65
NEXUS PRICE US $598
APPLES STRATEGIES :
VERSIONING
TEMPORAL PRICE DISCRIMINATION

APPLES COST VS PRICING

IPhone 4S
$188 parts for 16-GB model, $649
$207 parts for 32-GB model, $749
$245 parts for 64-GB model, $849
($30-40 cost differential relates to $100 higher priceother costs assumed
same)

MARKET STRUCTURE
OLIGOPOLY: Market was Majorly dominated by APPLE & Samsung
Duopoly : Operating software ; Android and IOS
Shift from OLIGOPOLY to PERFECT Competition

 Price Wars is a period of fierce competition in which traders cut prices in an

attempt to increase their share of the market.
Indian smartphone brands such asMicromaxandKarbonnwere among the
first to realize that competing on price is the key to success in the country.
What's changing though is that the specifications of phones launching at lower
prices are at par with, if not ahead of, the flagships that cost thrice as much.
That's not enough, and so the big brands are also being more cost conscious.
EvenApple, a brand that never competes on price, has offered buyback
schemes and even introduced an 8GB variant of the iPhone 5cin a bid to
boost sales in India.

PORTER ANALYSIS

LOW

RULES & REGULATIONS

Regulatory Framework
Government Initiative
FDI
No Exit Barriers

THANK YOU