Upload
bikramaditya-baruah
View
106
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Industry report for smart phones
Citation preview
The SMART Phone
BLUE turtles
Mobile phones in INDIA
Mid nineties, INDIA saw its first mobile
Maker: MICROMAX
Modi TELSTRA was the first service provider in
India
First city to receive mobile network: KOLKATA
Some numbers…
Total number of Smartphones: ~30 Mn.
Smartphone share as a % of total mobile
sales: 12-15%
Leading smartphone operating system:
Android
Share of android : 56.4%
Leading local brands : Micromax, Karbonn,
Spice
Share of local brands in total smart phone
sales: 20-25%
Major players in the Market
APPLE
SAMSUNG
BLACKBERRY
NOKIA
SONY
MICROMAX
LG
HTC
Mobile phones in the market
Total mobile revenue – 1.5 trillion, over 2% of
global GDP
42% of the revenue from Top 10 operators
Samsung and Apple account for close to 50%
of smart phone unit share
And they also account for 90% of smartphone
revenues.
Competition is Cut throat.
Latest smart phones
Apple : Apple iPhone 5
Samsung: Samsung galaxy s4
Micromax: Micromax canvas 4
Sony: Sony Xperia Z
HTC: HTC Butterfly, HTC one
Nokia: Nokia Lumia 1020
Blackberry: Blackberry Z10, Q10
Segments in the market
A. Ultra low cost mobile handsets (INR 3000-
7000)
B. Medium cost mobile handsets (INR 7000-
20000)
C. High cost mobile handsets (INR 20000+)
Segments in the market The below table gives details of number of
phones of each brand in each segment A B C
Samsung 9 10 10Apple 0 0 3
Micromax 11 9 0Nokia (WINDOWS) 1 10 2Nokia (SYMBIAN) 14 10 0
Sony 1 11 7HTC 1 11 6
KARBONN 15 9 0
Market share of OEMs in India
42.3
17.18.4
5.6
5.1
21.5
Smart phone market share in India
SamsungMicromaxKarbonnNokiasonyothers
Market share of OEMs globally
Market share based on Mobile OS
56.4
17.4
3
2.6
20.6
Market share of Mobile OS
AndroidSymbainiOSWindowsothers
Major challenges faced by the industry
Raw materials
Integrating cloud
Recycling the unused mobiles
Government regulations
ANALYSIS OF THE INDUSTRY
DEMAND The demand for a smart phone follows the
normal demand curve. As the price decreases, the demand for the good increases.
Quantity
Pri
ce
D
Demand & Market Demand As there are many factors that influence
demand, we assumed the demand equation to:
Q= 5P + 1C + 1.5F+2S+3B+4Ad+7U+2(DoI) + 1.5Se [for 3000<=P<=20000]
For the price above 20000, some of the above said factors do not matter. Hence,
Q= 2P + 1C + 2F+5B+6Ad+ 1 Se [for P>20000]
Elasticity, Inelasticity and Cross elasticity
A smart phone follows all the rules of normal
commodities excepting for a few exceptions. A normal
smartphone has price elasticity which is above unity.
Eg: demand for phones like Samsung S4, HTC one etc.
Exceptions being iPhone 5. Even though priced extremely
high, the demand of the iPhone 5 was so high, that they
fell short of supply as soon as the phone was released.
Being a luxury commodity, it is a fairly inelastic good.
Cross Elasticity Due to the high number of complementary goods,
this concept can be seen often
Acquisition of Motorola by Google
Merger with LG and Google
Acquiring Android finally name changed to Google play
Apple releasing their locked phones exclusively with
network providers like Airtel in India.
Same was done by Blackberry and Vodafone.
The decline of Nokia from being the top brand. This
explains the concept of cross elasticity among substitutes.
Market Power A Smart phone industry: An Oligopoly Being an Oligopoly, fight for more market
share is always present. Some examples are
Micromax Canvas: strikingly similar to Galaxy S2,
S3 Note 2 phones from Samsung, but almost at
half the price.
Aggressive marketing by every player including
Apple.
Blackberry, a brand known for QWERTY. Releasing
a full touchscreen phone with Z10
The famous case of Apple v/s Samsung
THANK YOU