For the future, it is planning to keep driving the whole music message and focus on new areas such as mobile Internet and mobile WAP, and is planning to launch phones with mobile Internet capability particularly moving around content between various devices over the Internet.

Sony Ericsson phones come in packages suited for each segment of the consumer and its strategy is to keep the customer excited with the products that they possess.

By the end of 2007 it plans to open hundred Sony Ericsson Experience Stores, and is also planning to establish shop in shops, which will improve their presence. The first four of Sony "Experience Stores" were opened in Ahmedabad, Rajkot, and Vadodara. Its iconic Cyber-Shot branded imaging phone was also launched in 2006. Taking a step forward in strengthening its presence in India, in Jan 2007 Sony Ericsson announced its agreement with Flextronics and Foxcomm to manufacture mobile phones in the country.

Some of the models launched by Sony Ericsson were W 950i, K310, K510, K550i, W710i, W 850i, Z610i, P990i, K 790i, W 880i, and W 950i. As a part of their aggressive strategy they are bringing in all aspects ranging from Bollywood to sports to further boost their growth in the country.

For Samsung it was a bad year as the company was unable to fulfill the promise. India is the hub for Samsung's South West Asia Regional operations. In FY 2006-07, Samsung launched a number of price sensitive phones for fashion and price conscious Indian consumers. It has to its credit the launch of one of the slimmest slide-up range of phones in its "The Ultra Edition" series using the smart surface mounting technology (SMIT) pioneered by Samsung worldwide. It plans to focus aggressively to achieve the leadership position in the mobile phone market. Its manufacturing unit in Haryana is catering to the demands of local markets and acting as a manufacturing hub for other Asian and the Middle East markets. The other model that was launched in FY 2006-07 was SGH C130 catering to the entry-level market and X-510, an entry level VGA camera. Apart from the innovative designs Samsung phones made a mark in the Indian market for being feature rich also. The company also launched C300 and X530 to meet the fun on the move lifestyle of the Indian youth.

E2150, C130, and S210 were the best selling models for Samsung. The company has a manufacturing capacity of 15 mn phones per year to give a big push to its distribution. The company has appointed TeleMart for all India minus south whereas UTL will take care of southern territory.

One of the surprise entry in the Top 5 club is ZTE which has realized the true potential of the market. In the GSM category, the phones are branded by Spice whereas in CDMA it is branded by Reliance Classic. The company has done exceptionally well with a three-digit growth. The company is also focusing on features and is planning to launch dual mode phones in the Indian market.

Blackberry launched four models in 2006-07. The models are as follows: 8700g, 7130g, 8100, 8800. 8100 Pearl is targeted the prosumer audience. 8700g and 8800 are enterprise phones with fully QWERTY keypad, 7130g is an enterprise phone with a Sure Type keypad. Airtel and Hutch do its distribution and service strategy in India. RIM offers BlackBerry 8707 series on 3G networks.

BlackBerry, the wireless enterprise solution developed by RIM, provides end-to-end wireless solution for corporate environments already being used by thousands of organizations. Apart from email, blackberry enables third-party applications enabled by the platform, such as sales force automation, field service automation, network and systems management, entertainment, device personalization, and so on. Also, it offers features that make it the choice of wireless solution for the enterprise such as end-to-end security, push-based architecture; support of all three leading enterprise messaging platforms; device, network and platform management through a centralized console; easy-to-use stylish device design with outstanding battery life; and global carrier partnerships with extensive roaming coverage.

RIM recently announced BlackBerry Enterprise Server 4.1 that incorporates mobile data service to provide a powerful yet user-friendly environment and tools for an enterprise to develop data applications. There are over 8 mn BlackBerry subscribers globally. RIM is very happy with the enthusiastic customer response till now and its prospects for the future.

BenQ mobile phones in India are known to be the affordable GSM phones for the masses. It launched about eight models in FY 2006-07 in both BenQ and BenQ-Siemens range. BenQ-Siemens A38 is the best selling model in the color category, BenQ-Siemens E61 in the music category (MP3), and BenQ-Siemens S88 in the camera plus music category. It has a prolonged distribution strategy including an open market strategy, bundling with operators, mobile stores, exclusive BenQ outlets, and online sales. It has tied up with Salora and Adonis for after sales service and has more than 200 service centers. Eventually, it aims to launch affordable 3G phones in India.

Rose Telecom founded in November, 2005 is headquartered in Seoul, Korea and provides CDMA phones in India through Reliance Communications' Reliance Classic range of phones. The monochrome classic phone, released by Reliance Communications, was a huge success and the company has also launched color models and is doing well in the market.

SAGEM another player has not been able to leverage on its feature. The company is developing a large palet of innovations based on the new communication technologies (built-in digital camera, color screens, video capabilities, multimedia messaging services (MMS), WAP, GPRS, JAVA, radio communication modules, modems, etc. In India, it is recognized as the provider of low cost entry-level handsets and has not been able to make a mark in the Indian market.

O2 has launched five models in the Indian market and they have a very selected distribution of 440 outlets in 32 cities. As these products are high-end they can afford to do this as prices are upwards of Rs 25,000. It is considered to be an enterprise productivity tool and not a PDA.

Haier has done well in the Indian market due to its excellent relationship with Tata Teleservices. Spice is present in all categories and has different distribution model vis-a-vis its competitors. There are lot many small players and they are focusing on niche market strategy.

Vendors Betting Big
With 3G policy yet to be announced, vendors are betting big on 3G handsets, some of them have already launched their products in the Indian market and others are planning to do so, once the services are being launched by operators. It seems one can see a lot of 3G phones sales in 2008. And this will also help in pushing high-end phones in the market where experience centers and branded retail is coming into picture.

Replacement market will be a big one as the base of handsets are increasing and it is also creating a lot of confusion in terms of after sales service as it's not easy to handle customer complaints. Vendors have to pay a lot of emphasis on this aspect so that there can be a smooth flow in terms of after sales service.

With the expansion happening in smaller towns and cities, the handset vendors have to look at low cost distribution models so that the product is also available in smaller towns and talukas. Not only sales, focus is also on collection points to improve after sales service.

With a large base of handset in the country, there will be a requirement of mobile accessories in the Indian market, and presently it is the grey market which is flourishing as duties are at around 30% or more. The ICA has to take lead and make presentations to the Financé Ministry for lowering of duties for mobile accessories in the country.

Companies are focusing on launching a lot many products thereby reducing PLC (product life cycle) to 9-12 months, and vendors have to keep on innovating new features so that there is a renewed interest among consumers. Vendors who can keep a balance will be a winner in the long run.

Pravin Prashant
pravinp@cybermedia.co.in