Nokia, the
handsets giant in India, is desperately looking at ways to regain ground in India. In a move that will help the handset manufacturer expand its life tools profile, Nokia is planning to launch a limited edition of handsets at the sub Rs 1000 price point.
The Finnish manufacturer has a more ambitious plan of introducing a handset in the Rs 500 price bracket.
Nokia wants to boost its life tools offerings by launching low cost handsets to users in the
rural India. The company's offerings can prove to be a revolutionary step for changing the lives of millions of people in the rural areas.
It is difficult to imagine how Nokia will manufacture a phone at such a low cost. In India, most of the rural subscribers have been dependent on smaller or Chinese handset players to get feature rich phones.
The war is not going to be very simple for Nokia as several small Indian handset manufacturing companies, including Micromax, Intex Technologies and
Karbonn have already decided on a marketing plan for the rural market. The spend for FY 2009-10 stood at around Rs 100 crore.
India's rural mobile phone users have crossed the 100 mn mark, and this is where the next wave of growth is set to rise from. The rural market is definitely a fertile ground for the handset manufacturers. As going by the analyst estimates, almost 60% of the total net additions are from the rural areas.
There has been a shift in the product mix from mid to low end. Even the rural buyer in India would like to choose a feature rich handset that enables him to hear radio or have access to the basic
VAS. Thus, it is going to be a compelling game to watch Nokia play.
heenaj@cybermedia.co.in
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