Report: Mobile sales in India to reach 251 mn units in 2013 [Lenovo Beats HP and Jockeying for No 1 position]

In Mobility & Consumer Tech by Jayadevan P K

Mobile device sales in India are forecast to reach 251 million units in 2013, an increase of 13.5 percent over 2012 sales of 221 million units, according to Gartner. The report says that mobile handset market is expected to show steady growth through 2016 when end user sales will surpass 326 million units.

Some of these local and Chinese manufacturers are building capabilities, distribution and brand to compete with the big global players as they are preparing to compete at a larger level covering broader consumer segments, said Gartner. Manufacturers such as ZTE, Micromax, Karbonn Mobile, Huawei stand at sixth, seventh and twelfth in the Indian smartphone market in the first half of 2012.

Samsung’s brand strength and wide device portfolio has allowed it to take advantage of the high growth opportunities in Indian market. Samsung’s share has risen from 15 percent in 1Q11 to 49.8 percent in 2Q12. If Samsung continues this strong growth, it could end 2012 with more than 60 percent share — exactly where Nokia was at the start of 2011.

Micromax phenomena

While Samsung sells more phones compared to Nokia in India, tiny India based Micromax is beating Samsung and Apple in tablet sales. According to Cybermedia research, .55 mn units of tablets were shipped in the second quarter of 2012 and Micromax leads with 18.4 % marketshare followed by Samsung at 13.3 % and Apple at 12.3 %. Micromax, which taught the biggies a thing or two about India (They were the first to popularize dual SIM phones), is also growing into other segments. Recently, Micromax also launched LED Televisions to their product lineup.

Lenovo beats HP to become No 1 PC maker & Jockeying to No 1 position

Earlier today, Gartner released its latest PC shipment data according to which Chinese PC maker Lenovo has beaten Hewlett Packard to become the number one PC maker in the world. Meanwhile, research firm IDC which tracks PC shipments as well, ranks HP as number one. Just a few hours later, HP hit back with a press statement and said

“While there are a variety of PC share reports in the market, some don’t measure the market in its entirety. The IDC analysis includes the very important workstation segment and therefore is more comprehensive. In that IDC report, HP occupies the No. 1 position in PCs.”

We have always said that one needs to be careful when reading into numbers and studies. Also, when it comes to Mobile Phone and PC shipments, we are told that a fair amount of executive pay (and bonus) depends on the position they hold in a particular geography. So we wouldn’t be surprised if someone told us that a fair bit of jockeying goes on.

Lenovo follows what is called “protect and attack” strategy. It protects its home market (China) and defends its margins in its mature markets. It attacks in new and emerging markets like India by pricing competitively (sometimes forgoing margins) and expanding its presence rapidly. Hewlett Packard, on the other hand, is struggling to make a comeback under its new chief executive Meg Whitman.