BANGALORE, India India has emerged as the second largest mobile handset market in the world and is poised to become a global hub for mobile handset manufacturers by early 2006, say industry observers.
According to a study by Research and Markets (Dublin, Ireland), the Indian mobile handset market is now worth about $2 billion, but will surge by over 60 percent in two years. Nokia dominates the market with a 59 percent market share, followed by Samsung with 13 percent and Motorola with 7 percent.
India had 45 million GSM subscribers in June, with the number expected to more than double to 100 million subscribers in 2007, the study said.
The study added that Indian mobile subscribers are willing to pay for upgrades, value-based services, and advanced models that provide better services. Recent policy changes have helped cut handset prices and opportunities are looming for handset manufacturers. The study said Indian mobile subscribers are willing to pay for upgrades, value-based services, and advanced models that provide better services.
India is witnessing big foreign investors seeking to capture large chunks of the market. Nokia
, LG and Elcoteq
have already announced plans for manufacturing in India, while Motorola is prepared to do so once its market share here rises.
Samsung and others are also considering setting up plants here.