The Hindu Business Line : India may produce 30 million handsets in 2007: ICA

Advertisement

Hyderabad Jan. 29 With India poised to add about 85-90 million handsets this year, including 18 per cent through the replacement market, the country could potentially produce about 30 million handsets this year itself as against initial estimates of this target by 2009.

The President of India Cellular Association (ICA), Mr Pankaj Mohindroo, said the production has begun in several manufacturing units in the country, which include LG, Nokia, Flextronics and Samsung. Motorola is set to join soon.

Speaking to Business Line during his visit to Hyderabad to launch an outlet for i-Mate, Mr Mohindroo, who is also Chairman of i-Mate, said: "India has reached an inflection point and has emerged as the fastest growing cellular market in the world. The best part is it continues to be a largely untapped market promising huge potential for growth."

The potential of achieving this 30-million production mark is quite real and achievable as the market has changed in the last two years. From a market which had about 85-90 per cent of handsets from the grey market, it has turned exactly opposite with 90 per cent legal, limiting the grey channel to 10 per cent.

Last year witnessed the addition of about 68 million handsets, which meant over 100 per cent growth. We expect 2007 to register similar growth. To this, we need to factor the replacement market, which is about 15-18 per cent. Over 75 per cent of the market is accounted by sub Rs 7,500 handsets, he said.

Biz phones

Mr Mohindroo said the category of business phones, now estimated at about 0.5 per cent of the total market, is poised for growth driven by increased adoption in enterprises to empower their field force.

A business phone is like a mini laptop, powered by Microsoft Windows Mobile 5.0 operating system and has all applications that a desktop features. Given the advantage of accessing e-mail and other computing applications, and also conferencing on the go, many small and medium enterprises are purchasing these handsets to empower their workforce, he said.

Referring to i-Mate plans, which offer handsets ranging from Rs 17,500 to Rs 45,000, Mr Mohindroo said the company planned to rejig its portfolio and may offer at Rs 15,000 bringing some more people on the world of business phones.

i-Mate, which currently offers its business phones for GSM networks, is considering the prospect of rolling out CDMA phones too, Mr Mohindroo said.