Indian mobile companies may find it tough to regain market share
smartphone market, which is still dominated by Chinese brands, regardless of the price levels: sub or above ₹10,000. An ET survey, which constituted nearly 20 mobile retail shops in Delhi, found that none sold Indian mobile brands-firstly, shops had limited stock of sub-₹10,000 mobile phones-which used to drive volumes historically in India; and almost all the shops sold 2-3 times more ₹ 10,000-plus mobile phones than sub-₹10,000 handsets, with demand mostly for 5G phones over 4G phones.
Indian brands like Micromax, Lava and others have a tall task ahead. «They (Indian brands) lack financial wherewithal and technological fundamentals and are dependent on global supply chains for manufacturing phones, and don't have volumes to bargain with global supply chains,» said Faisal Kawoosa, founder of market research firm Techarc.
«The only way the sub-₹10,000 phone segment can grow is when there's a strong and deeper collaboration between OEMs (original equipment makers), government, and network providers, not just financial arrangement but collaboration at the technological level,» he added. But as technology evolves, the market evolves with it.
The launch of 5G in India has changed the Indian mobile market, with people seeking phones that support the next-gen technology. Experts say mobile manufacturers, most of them foreign, are focusing on the above ₹10,000 segment, which creates a space for Indian brands to re-enter the market.
«Every tech transition presents an opportunity; the Indian manufacturers were pushed out of the game when we transitioned from 3G to 4G, and they have an opportunity now as we shift from 4G to 5G,» said Tarun Pathak, research director, Counterpoint Research. Kawoosa added that the demand hasn't
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