1.
Smartphone Market – India
May 2017
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2.
Smartphone Market in India 2017
Executive Summary
Market Overview
Drivers and
Challenges
Trends
Competitive
Landscape
• Globally, smartphone shipment is expected to reach a value of X mn units by 2020 growing at a CAGR of A% from 2016
• In the platform domain android is expected to drive the demand globally, as Original Equipment Manufacturers (OEM’s) are continuing to penetrate
growing markets with competitive prices
• Company A leads the Indian smartphone market with ~A% market share as of QX, 20–
• By 2020, smartphone shipment in India is expected to reach a value of X mn units growing at a CAGR of ~A % from 2016
Drivers
• Increasing Disposable Income and Economic Advancement
• Changing Demographics and Consumer Behavior
• Advanced Features, Applications and Digital Contents
• Constant Reduction in Prices of Smartphones
• Exclusive Online Distribution
Challenges
• Security and Privacy Concern
• Battery Life of Smartphones
• Low Penetration of Advanced Mobile Devices in Rural Areas
• Trend 1
• Trend 2
• Trend 3
Major Players
Company A Company B Company C Company D
2

3.
Socioeconomic Indicators
Market Overview
Market Influencers
Competitive Landscape
Recent Developments
Appendix
3
Trade Analysis
Market Trends
Government Initiatives and Investments

4.
Smartphone Market in India 2017
Socioeconomic Indicators
Total Population
4
Population Density
1,500
1,000
500
0
X%
2020
k
2019
j
2018
i
2017
h
2016
g
2015
f
2014
e
2013
d
2012
c
2011
b
2010
a
0
100
200
300
400
500
2019 2020
k1
Y%
2015
f1
2014
e1
2013
d1
2012
c1
2011
b1
2010
a1
h1
2016
i1
2017
j1
2018
g1

5.
Smartphone Market in India 2017
Value Chain Analysis
5
Mobile Phone Manufacturing Value Chain
R&D , IP
Ownership
Design
Services
Sourcing and
Fabrication
Manufacture
or System
Assembly
Configuration
and Testing
Distribution
and Repair
Services
Marketing
and Sales
• Internet Protocol
reusability
management
• XXX
• Form factor
design
• XXX
• Printed circuit
board
fabrication
• XXX
• Manufacturing/
assembly of the
final product
• XXX
• Configuration of
the final product
• XXX
• Packaging
• XXX
• Product / IP
marketing
• XXX
• Mobile phone manufacturing is an interplay between the design aspect, the components and the manufacture of the device
• India houses number of mobile phone companies that have developed a large local manufacturing base and are manufacturing through a mix of local production and assembly
• XXX

6.
Smartphone Market in India 2017
Market Overview – Global
6
Market Size & Growth Forecast (Shipment)
2.0
1.5
1.0
0.5
0.0
+3.7%
2020
f
2019e
e
2018e
d
2017e
c
2016
b
2015
a
Global Smartphone Vendor Market Share
d
c
b
a
e
f
A5
A4
A3
A2
A1
A6
2016
0
20
40
60
80
100
c2
c1
c4
c3
d1
2018e2017e
a1
a2
x1
x4
x3
x2
2015
d2
d3
e1
d4
2019e
e4
e2
e3
2020e
a3
2016
a4
b2
b1
b4
b3
5.5" < 7" Phablet
5"<5.5" Smartphone0"<4" Smartphones
4"<5" Smartphon
Global Smartphone Shipment Based on Screen Size
• Globally, in the platform domain android is expected to drive the demand as Original
Equipment Manufacturers (OEM’s) are continuing to penetrate growing markets with
competitive prices
• Smartphones with 5" displays and higher is expected to grow to account ~A % of Android
devices in 2020 as OEMs are developing new technological methods to produce large
screen smartphones at a very low cost
• XXX

7.
Smartphone Market in India 2017
Market Overview – Indian
7
Market Size & Growth Forecast (Shipment)
0
50
100
150
200
250 A%
2020e
f
2019e
e
2018e
d
2017e
c
2016e
b
2015
a
• India has overtaken the U.S. to become the fastest growing smartphone market in the world
• By 2020, smartphone shipment in India is expected to reach a value of X mn units growing at a CAGR of ~A% from 2016
• Government of India’s ambitious ‘Make in India’ campaign is encouraging domestic and foreign companies to set-up production facilities in the country
• Besides, government incentives, faster than-expected rollout of 4G network supported devices will support smartphone adoption in India
• Company A leads the smartphone market in India with ~A% market share in QX 20--, besides Company B, Company C, Company D and Company E
• Celebrity endorsements from famous personalities along with huge sponsorship campaigns by brands such as Brand 1 and Brand 2 have helped improve perception of Chinese brands
among Indian consumers which is aiding the growth of these brands in the Indian market
Current Market Scenario

8.
Smartphone Market in India 2017
Market Segmentation
8
F%
E% D%
C%
B%
A%
Others
Company E
Company D
Company C
Company B
Company A
Market Share of Top 5 Indian Smartphone Companies
Top 4 Chinese Label Smartphones by Market Share
A% E%
D%
C%
B%
Others
Company D
Company C
Company B
Company A
Q4 2016
CY 2016
Total smartphone shipments = X mn units
• Company A leads the Indian smartphone market with A% market share
• XXX
• Chinese smartphone brands are offering quality which is at par with global brands such
as Company A, at a better price
• Chinese vendors’ access to low-cost components and their expertise in designing metal
casing for cheap phones is letting brands like Brand A, Brand B and Brand C to offer
better quality products than Brand D
• XXX
Total smartphone shipments = X mn units

9.
Smartphone Market in India 2017
Online Smartphone Market Overview
9
Top 5 Companies Based on Online Smartphone Sales
0
5
10
15
20
25
30
b2a2
Company B
b1a1
Company A
ba
Others
b5
a5
Company E
b4a4
Company D
b3
a3
Company C
YX
• Online sales of smartphones accounted for X% of overall phone sales in Q4 (Oct – Dec) 20-- with Brand A and Brand B accounting for more than half of the channel’s volume
• Company A increased its share of the online sales in India to X% in the Q2 (Apr - Jun) 20– from X% in the previous Q1 (Jan – Mar) 20--
• Chinese firm Company A, which depends on its Brand A and Brand B series for online sales, had a share of X% in online market in Q2 (Apr-Jun) 20--, with sales of over X mn
• XXX

10.
Smartphone Market in India 2017
Porter’s Five Forces Analysis
10
• There are many alternatives to
consumers like Phablets and Tablets,
which are available at almost similar
price compared to smartphones and
the switching cost involved is
comparatively low
• XXX
• Bargaining power of buyers is high due
to increasing number of choices in the
mobile telecommunication industry
and also because of very little product
differentiation
• XXX
• Supplier of smartphone equipment and
parts have negligible bargaining power
due to presence of ample number of
international suppliers
• XXX
• The smartphone market already has
well established current players
• XXX
Competitive Rivalry
• Number of existing companies in
the Indian market offering the
same or similar products is
relatively high
• XXX
Bargaining Power
of Suppliers
Threat of New
Entrants
Bargaining Power
of Buyers
Threat of
Substitutes

11.
Smartphone Market in India 2017
Government Initiative and Investments (Contd.)
11
1 • LeEco, a Chinese technology company, has entered into a strategic partnership with Compal Technologies, a global electronics company and has invested
INR X mn to set up a manufacturing facility at Greater Noida in order to start manufacturing Le2 smartphones in India
2 • XXX
4 • XXX
5 • XXX
3 • XXX
6 • XXX
7 • XXX

12.
Smartphone Market in India 2017
Effects of Demonetization
12
100
80
60
40
20
0
Oct, 2016
x2
x1
x
Vendor CVendor BVendor A
Smartphone Vendor Share Comparison – Across Indian Cities*
100
80
60
40
20
0
Nov, 2016
y2
y1
y
Smartphone Vendor Share Comparison – Across Tier II and Tier
III Cities
120
100
80
60
40
20
0
Oct, 2016
x2
x1
x
Vendor CVendor BVendor A
100
80
60
40
20
0
Nov, 2016
y2
y1
y
• Indian government's demonetization move of making old INR 500 and INR 1000
notes invalid as legal tender w.e.f. Nov 08, 2016, in the country had led to a slow
down across many industries including the consumer devices market
• Smartphone sales within the leading X cities of India fell by a major A% month on
month in Nov 2016 over Oct 2016
• Demonetization and resulting cash crunch can be considered as one of the main
reason resulting to the downward trend of smartphone sales in the country after
the festive season in Oct 2016
• XXX

13.
Smartphone Market in India 2017
Export : 85171290
13
Export (Value)
0
50,000
100,000
150,000
Y%
FY 2016-2017 (Apr-Dec)
x4
FY 2016
x3
FY 2015
x2
FY 2014
x1
FY 2013
x
0
50,000
100,000
150,000
x
FY 2013 FY 2016-2017 (Apr-Dec)
Y%
x4
FY 2016
x3
FY 2015
x2
FY 2014
x1
Export (Volume)

14.
Smartphone Market in India 2017
Export Segmentation based on Country: 85171290
14
Value-Wise Segmentation
FY 2016 FY 2017 (Apr-Dec)
c
efg
d
b
a
Others
Country 6
Country 5
Country 4
Country 3
Country 2
Country 1
g
f
e
d
c
b
a
Others
Country 6
Country 5
Country 4
Country 3
Country 2
Country 1
Volume-Wise Segmentation
f
g
ed
c
b
a
Others
Country 6
Country 5
Country 4
Country 3
Country 2
Country 1
c
d
b
a
g
ef
Country 4
Country 3
Country 2
Country 1
Others
Country 6
Country 5
FY 2016 FY 2017 (Apr-Dec)

15.
Smartphone Market in India 2017
Market Drivers
15
• Rise in disposable income and per capita
income has revolutionized consumers’
buying and spending patterns towards PCs,
mobile devices, communication equipment
and services
• XXX
Increasing Disposable Income and Economic
Advancement
• Mindset of the Indian consumers have
evolved and changed dramatically over
time, which in turn, is affecting their
purchase decisions and consumption
patterns
• XXX
Changing Demographics and Consumer
Behavior
• Smartphones are equipped with enhanced
features and applications which attracts
consumers of all age groups; especially the
youth
• XXX
Advanced Features, Applications and Digital
Contents

16.
Smartphone Market in India 2017
Market Challenges
16
• Increase in the sales of smartphones has
also led to a growth in the number of
malicious practices
• XXX
Security and Privacy Concern
• Though smartphone technology has
advanced quickly, leading to more powerful
devices with more features, battery
technology has been left behind
• XXX
Battery Life of Smartphones
• Smartphone and Tablet PC adoption rate in
rural India is still low largely due to
budgetary constraint and low adaptability
to complicated devices
• XXX
Low Penetration of Advanced Mobile
Devices in Rural Areas

17.
Smartphone Market in India 2017
Market Trends
17
Major Smartphone Market Trends
• Smartphone manufacturers are equipping all of their devices with
advanced processing power
• XXX
Multi-Core Processor
• Newer devices belonging to the mid-range and high-end segment are
coming with significant internal memory to provide user with the
flexibility of storing huge music collection, HD movies and enormous
games in the mobile devices
• XXX
High Internal Memory
• Consumer look to take advantage of the big touch screen displays for
watching videos, movies and other visual entertainment
• XXX
High Resolution Touch Screen Display
• Manufacturers are focusing on producing better designed smartphones
• XXX
Design

18.
Smartphone Market in India 2017
Competition
18
List of Major Players
Name Website
Company A
Company B
Company C
Company D
Company E
Company F
Company G
Company H
Company I
Company J

19.
Smartphone Market in India 2017 19
Private: Domestic Company – Company A
Company Information Business Description
• Company A was founded in 19-- and is headquartered in State 1, India
• Company A designs and manufactures consumer durables and information
technology accessories
• The company provides mobiles, smart wearables, tablets, power banks, LED TVs,
speakers, and washing machines, and information technology accessories, such as
cabinets, head phones, SMPS, webcams, computer mice, keyboards, UPS
products, add on products, data cards, and LED monitors
• It has a PAN-India presence through its wide network comprising X no. stock and
sales offices and over Y service touch points
• The company also has presence in Country 1, Country 2, Country 3 and Country 4
• In 20-- the company has announced plans to expand its presence to Country 1,
Country 2 and Country 3
Products and Services
Category Products/Services
Mobile Devices Smartphone, Feature Phones, Tablets
Wearables Smartbands, Cardboards, Smartwatch
LED and Smart TVs Smart TV, Full HD, HD
Others
Refrigerators, Air Conditioners, Power Bank, Speakers,
Washing Machine, IT Accessories, Air Purifiers, Air Coolers
Key People
Name Designation
XXX XXX
Corporate Address Company A
Tel No. +91-xx-yyyy-zzzz
Fax No. +91-xx-yyyy-zzzz
Website www.xyz.com
Year of Incorporation 19--

20.
Smartphone Market in India 2017 20
Private: Domestic Company – Company A (Contd.)
Business Description (Contd.)
• Company A launched India’s first Firefox Operating System powered mobile phone named, Brand A
• India's first Linux-based Sailfish OS powered mobile phone, was launched by Company A
• It started domestic manufacturing in 20-- and currently operates five manufacturing facilities that are based in State 1, State 2 and State 3
Revenue Growth
0
20
40
60
80
A%
X1
INR bn
FY 2016FY 2015
X2

21.
Smartphone Market in India 2017
Recent Developments
21
Date Category Description Impact
Mar 27, 2017 Product Launch
• Panasonic India, launched two new smartphones named ‘ Eluga Ray Max’ and ‘ Eluga Ray
X’ that are equipped with "Arbo“, which is the company's in-house developed artificial
intelligence (AI)-based virtual assistant
• Priced at INR 11,499 and INR 8,999 respectively, these two smartphones are exclusively
available on Flipkart.com
High
Mar 25, 2017 Product Launch • XXX High
Mar 23, 2017 Product Launch • XXX High
Mar 18, 2017 Product Launch • XXX High
Mar 18, 2017
Product Launch
• XXX
High
Mar 18, 2017
Product Launch
• XXX
High

22.
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