Mobile Phone Industry

History of Mobile Phone The first hand-held mobile phone was demonstrated by Dr. Martin Copper of Motorola in 1973 Officially the mobile phone was 1st launched in 1983 by Motorola In the twenty years from 1990 to 2010, worldwide mobile phone subscriptions grew from 12.4 million to over 4.6 billion During the late 1980s and into the 1990s large firms such as Motorola, Ericsson, Nokia and Siemens entered into mobile handset market. 1st MP3 player enabled mobile was introduced in 1999 by Samsung 1st Camera phone was launched in 2002 by SANYO.

Current mobile phones can support many additional services Internet, Mobile TV, Camera, Music, GPS

Advancement in Mobile handset Liquid batteries, speech recognition, flexible touch screen Co-existing Wi-Fi and WiMAX Dual Core processors Transparent Screen Laser enabled Keypad

Naked eye 3D smartphone

HD Video recording and playback Superphones with built-in Projectors

Advancement in OS of Mobile phones Apples new OS - iOS 5.0 will be releasing in this year.
Blackberry is going to launch their new OS Blackberry QNX in 1st Quarter of 2012 Nokia is already working on Meego and Maemo OS to improve their smartphone Google has already released their latest android OS Ice-cream sandwich Microsoft is coming with new OS Windows Samsung Bada Blackberry RIM (Research in Motion)

Worldwide Smartphone OS Market Share Android rules the Smartphone OS Market with 38.9% of all market. Symbian OS having 20.6% share in Mobile OS market, nearly half of Android.

Apples OS, iOS comes in at 3rd place with 18.2% Mobile OS share
4.3%

20.6%

Android

38.9%
3.8%

iOS BlackBerry OS

Windows
Symbian Others

14.2% 18.2%

Driving factors of mobile handset industry Mobile Network - Availability of Network in Urban and Rural areas - Access to the Network - Advanced wireless services 3G/LTE Low cost and Advancement of cell phone - Smartphone Providing platform to access various services - Local Cell Phone manufacturers Micromax, Lava, GFive Various services and applications available at finger tip - Mobile Banking - Mobile shopping - Bill payments Social networking effect - Facebook - Twitter - YouTube Cheaper calling rates - Low Calling Rates - Affordable mobile data plans

Mobile Tariff Comparison Across World - Voice

1

1 0.9 0.8 0.7 0.6

0.5
US $ 0.4 0.3 0.2
0.1 0.25 0.17 0.38 0.38

0.12

0.09 0.04 0.02

0.1 0

0.01

Japan
Source: IDC

U.S.

U.K.

Canada

Finland

Taiwan Denmark

South Korea

Sweden

Hong Kong

India

Mobile Tariff Comparison Across World - Text

0.2
0.2 0.18 0.16 0.14 0.12 0.1 0.1 US $ 0.08 0.06 0.06 0.04 0.04 0.02 0 0.03 0.02 0.02 0.04 0.15 0.14

U.S.
Source: IDC

U.K.

Canada

Finland

Taiwan

Denmark

South Korea

Sweden

Hong Kong

India

Effect of Mobile phones on Landline Service

The number of telephone subscribers in India increased to 914.59 Million at the end of October, 2011 881.40 are wireless subscribers and 33.19 are wireline subscribers Negative growth of wireline subscribers by 0.37% in Oct, 11 as compared to users in September, 2011 Total 137,718 landline users disconnected their connection in October,2011 BSNL lost 6 lakh landline users in past 3 years 12 lakh wireline subscribers are decreasing per year

Facts & Figures of Telecom in India Telephone Subscribers (Wireless and Landline): 914.59 million (Oct 2011) Land Lines: 33.19 Million Cell phones: 881.40 Million Active wireless subscribers are 626.18 Million

Annual Cell phone Addition: 227.27 million (Mar 2010 2011)

Monthly Cell phone Addition: 7.79 Million Average selling price for a mobile device sold in India is about $45 75% of the Mobile devices sold costing below $75

Tele - density in India

Wireless Tele-density is 73.27 Wireline Tele-density is 2.76 The overall Tele-density in India reached to 76.03 at the end of October 2011.
159.96

160 140 120 100

73.27

Wireless Wireline

80 60
35.82

40

20
0 Urban
Source : TRAI

6.97

0.94

2.76

Rural

Overall

Customer view for mobile phone

Durability Size Battery Back up

Samsung iphone BlackBerry

Quality
High Cost

Brand
Nokia

Price

Low Cost

Dual SIM

Replacement

Wi-Fi

Features
OS

Service
Repairing

Social Networking

Ease of Availability

India Mobile Handsets Usage and Satisfaction Status 64% users happy with mobile handset brand MP3 Player and FM most desired feature in Mobile

Smartphone with advanced features at affordable prices Samsung

Customer care & after sell Support BlackBerry Low price with basic features - Micromax and Spice Ease of Availability - Nokia Overall satisfaction - BlackBerry

Customers priority for mobile phone

6% 10% 35% Quality Service & Support Brand Features 29%

Price

20%

Source : CMR survey report , 2011

Value for Money

70%

66% 57% 58% 54% 54% 56%

60%

50%

40%

30%

20%

10%

0%

BlackBerry

Samsung

Nokia

MicroMax

Spice

G Five

Source : CMR survey report , 2011

Brand wise satisfaction for overall Performance

80%
72% 69% 68% 68% 63% 62% 61% 60% 60%

70%

60%

59%

59%

57%

56%

54%

50%

40%

30%

20%

10%

0%

Source : CMR survey report , 2011

Mobile phone industry across world

The global mobile phones market had total revenues of $132.5 Billion in 2010-11 with CAGR of 10% over last five years. Global mobile phones industry is expected to increase to a value of $218 Billion by the end of 2015 with CAGR of 10.5% IDC forecasts worldwide smartphone market to grow by Nearly 50% in 2011 The UK mobile phones market had total revenues of $3.1 Billion in 2010-11 with CAGR of 4.5% in period of 2006 -2010 It is expected to grow with CAGR of 8.9% for the five-year period 2010 2015 with revenues of $4.8 Billion by end of 2015 The US mobile phones market had total revenues of $10.7 Billion in 2010-11 with CAGR of 5.4% in period of 2006 -2010 It is expected to grow with CAGR of 3% for the five-year period 2010 2015 with value of $12.4 Billion by end of 2015

Top Mobile Phone Vendors, Shipment and Market share ,Q3 2011

Vendor Nokia Samsung LG Electronics Apple ZTE Others Total

Source : IDC

3Q11 Unit Sell 3Q10 Unit Sell 3Q11 Market Share 3Q10 Market Share Year-over-Year Change Millions Millions 106.6 87.8 21.1 17.1 19.1 142 393.7 27.1% 22.3% 5.4% 4.3% 4.9% 36.0% 100.0% 110.4 71.4 28.4 14.1 12.1 112.5 348.9 31.6% 20.5% 8.1% 4.1% 3.5% 32.2% 100.0% -3.4% 23.0% -25.7% 21.3% 57.9% 26.2% 12.8%

Worldwide Mobile Phone Market share - Q3 2011

32.2%

31.6%

Nokia Samsung LG Electronics Apple ZTE

3.5% 4.1% 8.1% 20.5%

Others

Source : IDC

Mobile phone industry in India India holds 12% of shares of all global mobile handset market Indian mobile handset market grew by 15% to touch revenue of $6.63 Billion in 2010-11 51.5% contributed by smartphone and 25.2% by Dual SIM Mobiles Mobile phone production grew with CAGR of 28.3% in 2011

Smartphone are projected to grow by 45% as against a total market growth of 9% Y-o-Y 2011-12. The smartphone segment is forecast to see a much higher CAGR of 63.4% and to achieve a shipment of 77.5 million by CY 2015.

Market of Various Mobile Phone in India The handset market grew by 15% with total revenue of $6.63 Billions in 2010-11. Nokia $2.58 Billion with 0.02% growth Samsung $1.14 Billion with 21.7% growth

Sony Ericsson $13.8 Million with 16.9% of growth

Blackberry $39 Millione with 61.2% growth LG $36.68 Million with 14.6% of growth GFive $26.52 Million with 75.6% growth Micromax $45.78 Million with 42.9% growth Karbonn $20 Million with 25.5% growth Spice $18.4 Million with 11.5% negative growth Maxx $14.9 Million with 44.9% growth

Market Share of Various Mobile Phone Vendors in India

Nokia
6.80% 17.20% 39.00% 1.90% 4.00%

Local Brands Blackberry LG Sony Ericson HTC GFive Huawei Samsung

5.50% 1.40% 2.10% 5.90% 16.20%

Others

Intex Micromax
2.20%

1.30%

Karbonn Spice Maxx

6.90%

2.80%

3.00%

Source: Voice and Data

Future of Mobile phones

It is expected 213 million handsets to be sold in India in 2011 with total revenue is expected to reach $9 billion Mobile handset sales in India expected to grow by 9% in 2012 and reach 231 million units in 2012, as per Gartner.

IDC forecasts the market to clock 301 million by CY 2015, at CAGR of 13.03% during the period of 2011-2015
Mobile handset density will be 71% at the end of year 2015-16.

The number of mobile phones will exceed the number of people by 2022-23
The untapped rural market is expected to provide handset players the next phase of growth. The advanced capabilities, advanced wireless services, and high quality camera and the smart phones are expected to witness a steep growth curve through 2015.

Thank you