For the complete report, get in touch with us at : info@netscribes.com A Smartphone is a cellular phone with better, faster and enhanced operating abilities and performance which was earlier restricted to Personal Digital Assistant (PDA) and portable computers. Smartphones are rapidly replacing feature phones in India. With the number of vendors offering wide variety of smartphone devices, consumers are spoilt for choices with diverse features at different price. The report begins with ‘Introduction’ section covering overview of smartphone which provides basic idea of the technology and brief details regarding the prime features of smartphones. The ‘Smartphone Overview’ section elaborates global & domestic market state of smartphone business. It is accompanied by a plethora of qualitative and statistical information regarding the state of smartphone in major countries such as, smartphone shipments by various vendors and their market share and other related information. It is followed by ‘Drivers & Challenges’ section elaborating the major furtherance & impediments for smartphones in India. Both the ‘drivers’ and ’challenges’ are equally stressed upon to provide clear idea regarding the probable obstacles and rewards in the line of business and help vendors take necessary measures. The report continues with ‘Market Opportunity’ section where potential application areas for smartphones in India are elaborated. Each of the opportunity areas are accompanied by statistical data for detailed analysis. Next the recent developments and prominent trends in the market are illuminated under ‘Market Trends’ section. In the ‘Smartphone Player Profiles’ section, the key smartphone manufacturers are profiled. The section begins with a feature-price trade-off matrix for smartphone players in the country. It continues with information such as corporate & business highlights covering operational & recent information regarding each company’s contact information, location, key product and service offerings and key contacts for each of the players. It also provides financial performance for a period of time including revenue and profit, key ratios, financial summary and key financial performance indicators. Key business segment and key geographic segment for each player are provided as well to provide further clear idea regarding the companies. It also consists of a prices and specifications table for the latest smartphone devices available in India. The report concludes with the section ‘Strategic Recommendation’ which is derived after a comprehensive analysis of the market state & scope. It suggests key strategic moves which can help enhance and accelerate adoption of smartphones in India.

1. Smartphone Market in India
Smartphone Market in India
July 2012

2. Executive Summary
 Smartphone shipments in India is expected to reach ‐ mn units by 20‐‐, more than double of
the present figure
Market  In the Q1 20‐‐, smartphone segment in India achieved a quarterly growth of x1% despite of
global decline of smartphone sales by x2%
 Amongst the smartphone platforms in India, x3 has taken the lead followed by x4
Drivers: Challenges:
 Increase in Disposable Income and  Low Penetration in Suburban and
Drivers &
Drivers & Changing Consumer Behaviour
g g Rural Areas
Challenges  Introduction and Availability of Next  Security and Privacy Concern
Generation Cellular Networks
 Constant Reduction in Prices
 Multi‐Core Processor
 High Resolution Touch Screen Display
Market Trends
 Smartphone on Contract
 Rise of the Phablets
Major Players
Smartphone Apple Inc. HTC Corporation Research in Motion
Player Profile
y
LG Electronics Nokia India Samsung India
SMARTPHONE MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Smartphone Market Overview
S t h M k tO i
•Drivers & Challenges
•Market Opportunities
•Market Trends
•Smartphone Player Profiles
Smartphone Price and Specifications
•Strategic Recommendations
Appendix
•Appendix
SMARTPHONE MARKET IN INDIA 2012.PPT 3

4. Smartphones are cellular phones with wide variety of
features capable of performing advanced operations
Smartphone– Overview
• A Smartphone is a cellular phone with better, faster and enhanced operating abilities and performance which earlier
was restricted to Personal Digital Assistant (PDAs) and portable computers only
g ( ) p p y
 Smartphones are best known for their fast processing speed, high speed internet connectivity and the availability of numerous utility
features including ability to read and write some PC file formats right from the mobile device
• Featurephones often have some features resembling Smartphones, but in terms of processing power and multimedia
capability, they are a notched down version of the latter
• Smartphones manufacturers are rapidly adopting touch screens over keypads for user input and navigation
Smartphone Features Description
• D1
F1 • D2
F2 • D3
F3 • D4
F4 • D5
SMARTPHONE MARKET IN INDIA 2012.PPT 4

5. Smartphone shipments in India is expected to reach z1 mn
units by 20‐‐, more than z2 times of the figure in 20‐‐
Market Overview – India
• Robust growth can be witnessed in the smartphone segment in India which is one of the largest market for mobile
phones in the world
 In the Q1 20‐‐, the segment achieved a quarterly growth of a1% despite of global decline of smartphone sales by a2%
h h h d l h f %d f l b ld l f h l b %
 Poor performance of Indian currency against dollar has led to increase in smartphone prices by a3%, which primarily affected the sales
of a4 segment
• A5, a6, a7 and a8 held the majority market while a9, a10, a11 & others held the rest of the market
 Leading from the front Samsung has captured around a12% of the smartphone market in the country with a13 offerings and its own
Leading from the front, Samsung has captured around a12% of the smartphone market in the country with a13 offerings and its own
bada a14 platform, followed by Nokia with a15% market share and RIM with around a16% market share
 HTC doubled its smartphone sales from the previous year to acquire the market share of around a17% in 20‐‐
• Amongst the smartphone platforms, Android has taken the lead followed by Nokia’s Symbian OS platform
Smartphone ‐ Market Size (Shipment) Smartphone Platform ‐ Market Share (20‐‐)
n4
Mn Units n1 n5 n7
Z%
Y
X n6 n8
W
V n3
U
n2
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
SMARTPHONE MARKET IN INDIA 2012.PPT 5

6. SAMPLE
Smartphone Vendor Analysis – Global Top 4
• V1
Samsung • V2
• V3
• V4
Apple • V5
• V6
• V7
• V8
Nokia
• V9
• V10
RIM • V11
• V12
SMARTPHONE MARKET IN INDIA 2012.PPT 6

7. Drivers & Challenges – Summary
Drivers
Increase in Disposable Income and
Increase in Disposable Income and
Changing Consumer Behaviour Challenges
Introduction and Availability of Next Low Penetration in Suburban and
Generation Cellular Networks Rural Areas
Constant Reduction in Prices Security and Privacy Concern
Advanced Features, Applications and
Digital Contents
Colossal Wireless Subscriber Base
SMARTPHONE MARKET IN INDIA 2012.PPT 7

8. Enterprise mobility is witnessing major growth in India
SAMPLE
leading to enhanced opportunity for smartphones
Opportunity in Enterprises
• Enterprises with highly distributed workforce embrace mobile computing platforms for efficient operation & timely
communication
communication
 B1 and b2 industries top the list of enterprise mobility adopters followed by b3, b4 and b5 industry in India
 It also holds major potential within industries including Healthcare, Defense, Aviation, Energy Utility and Telecom, wherein advancement
in technology will stimulate the adoption rates
• More and more smartphone solutions are being launched for enterprises, offering world class POS (point‐of‐sales)
solution for mobile workforce
• Also enterprises bound by time‐constraints utilize mobile devices for commercial transactions for not only selling but
also for purchase activities
Enterprise Mobility – Market Size Mobile Workforce – India (Growth and Size)
INR bn mn
e
F% k
d L%
j
c
b i
a h
g
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
SMARTPHONE MARKET IN INDIA 2012.PPT 8

9. Market Trends (‐/‐)
SAMPLE
• T1
M1 • T2
• T3
• T4
M2
• T5
• T6
M3 • T7
• T8
• T9
M4 • T10
• T11
SMARTPHONE MARKET IN INDIA 2012.PPT 9

10. Feature‐Price Trade‐Off Matrix for Smartphone Players in
India SAMPLE
p10 p11
p9
p5 p8
p7
atures
p4 p6
p3 S1
Fea
S2
p2
p1
Price
• q1 and q2 largely provide expensive premium products, while the former has no offering in the entry level smartphone
segment, the latter has introduced few in recent times
• Some players, such as q3 and q4, offer vast number of products belonging to multiple price segment and having
variable features‐set, thus despite of having one of the highest priced and feature reach smartphones, they are
positioned lower in the matrix
• q5 players compromise on some features to offer smartphones at much lower cost than the established q6 companies
SMARTPHONE MARKET IN INDIA 2012.PPT 10

11. Public: Foreign Company – Company 1 (1/3)
Company Information
SAMPLE Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Place
Ticker Symbol
Stock Exchange
India Head Office
Products and Services
Products and Services
Category Products/Services
Key People
Name
N Designation
D i ti
C1 • S1
Person 1 D1
Person 2 D2
Person 3 D3
SMARTPHONE MARKET IN INDIA 2012.PPT 11

12. Public: Foreign Company – Company 1 (2/3)
Financial Snapshot
i i lS h
SAMPLE Key Ratios
K i
Total Income Net Profit/Loss y‐o‐y change
Revenue Profit Particulars 2011 2010 2009 2008
(2012‐11)
INR mn INR bn
s Profitability Ratios
Operating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%
r Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%
p q Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62%
Return on Equity 7.60 60.51% 52.91% 34.43% 47.18%
Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96%
0 0
Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13%
20‐‐ 20‐‐ 20‐‐ 20‐‐
Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%
Return on Fixed Assets
Financial Summary 28.31 319.77% 291.46% 227.97% 346.05%
Cost Ratios
• The company incurred a net profit of INR ‐ bn in FY 20‐‐, as Operating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%
compared to net profit of INR ‐ bn in FY 20‐‐ Administration costs (% of
0.49 10.10% 9.61% 9.11% 7.41%
Sales)
• The company reported total income of INR ‐ bn in FY 20‐‐, as
Interest costs (% of Sales)
(% ) 0.01 0.01% 0.00% 0.00% 0.01%
compared to INR ‐ bn in FY 20‐‐
compared to INR bn in FY 20
Liquidity Ratios
• The company earned an operating margin of ‐ per cent in FY 20‐‐, an Current Ratio ‐12.79% 1.27 1.46 1.95 1.90
increase of ‐ percentage points over FY 20‐‐
Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18
• The company reported debt to equity ratio of ‐ in FY 20‐‐, a decrease Leverage Ratios
of ‐ per cent over FY 20‐‐ Debt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91
Key Financial Performance Indicators Debt to Capital Ratio NA NA NA NA NA
Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67
Indicators Value (28/06/2012) Efficiency Ratios
Market Capitalization (INR bn) A Fixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41
Total Enterprise Value (INR mn) B Asset Turnover 24.95% 1.83 1.46 1.21 1.32
Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46
EPS (INR)
EPS (INR) C Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09
PE Ratio (Absolute) D Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51
Improved Decline
SMARTPHONE MARKET IN INDIA 2012.PPT 12

13. Public: Foreign Company – Company 1 (3/3)
Key Business Segments
SAMPLE Key Geographic Segments
k1 k2 k3 k4 k5 k6 k7 k8
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Key Information
Description Details
• C2 designs, manufactures, and markets mobile communication and media devices,
personal computers, and portable digital music players
Overview • It also sells software, services, peripherals, networking solutions, and third‐party digital
content and applications worldwide
• C3 operates in India via its subsidiary, C4
SMARTPHONE MARKET IN INDIA 2012.PPT 13

14. Company Information
SAMPLE
Private: Domestic Company – Company 2 (1/3)
Offices and Centres – India
India Head Office
Tel No.
Fax No.
Place
Website
Year of Incorporation
India Head Office
Products and Services
Products and Services
Category Products/Services
Key People
Name
N Designation
D i ti
C1 •S1
Person 1 D1
Person 2 D2
Person 3 D3
SMARTPHONE MARKET IN INDIA 2012.PPT 14

15. Private: Domestic Company – Company 2 (2/3)
Financial Snapshot
i i lS h
SAMPLE Key Ratios
K i
y‐o‐y change
Particulars 2011 2010 2009 2008
Total Income Total Income Profit (2012‐11)
INR mn Profit / Loss INR mn Profitability Ratios
W Operating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%
Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%
V Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62%
Return on Equity 7.60 60.51% 52.91% 34.43% 47.18%
Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96%
Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13%
U Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%
T Return on Fixed Assets 28.31 319.77% 291.46% 227.97% 346.05%
0 0 Cost Ratios
20‐‐ 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%
Administration costs (% of
0.49 10.10% 9.61% 9.11% 7.41%
Financial Summary Sales)
Interest costs (% of Sales)
Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%
• Company incurred a net profit of INR ‐ bn in FY 20‐‐, as Liquidity Ratios
compared to net profit of INR ‐ bn in FY 20‐‐ Current Ratio ‐12.79% 1.27 1.46 1.95 1.90
Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18
• It reported total Income of INR ‐ bn in FY 20‐‐, as Leverage Ratios
compared to INR ‐ bn in FY 20‐‐ Debt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91
Debt to Capital Ratio NA NA NA NA NA
• The company earned an operating margin of ‐ per cent in
Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67
FY 20‐‐, a decrease of ‐ percentage points over FY 20‐‐
Efficiency Ratios
• The company reported debt to equity ratio of ‐ in FY 20‐‐, Fixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41
an increase of ‐ per cent over FY 20‐‐ Asset Turnover 24.95% 1.83 1.46 1.21 1.32
Current Asset Turnover
Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46
Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09
Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51
Improved Decline
SMARTPHONE MARKET IN INDIA 2012.PPT 15

16. SAMPLE
Private: Domestic Company – Company 2 (3/3)
Key Recent Developments
Description Details
• O1 is a leading player in technologies including real‐time bidding, data marketplaces, big
Overview data, algorithms and targetting in o2
• Its engine is manned by over ‐ people across o3, o4, o5, o6, o7
• The company works closely with top publishers across the global platform including o8
and o9
• It constitutes an exclusive reseller of o10’s premium inventory in India, Thailand,
Partners and Investors Indonesia and Phillipines
• It also has partnership with technology vendors namely o11, o12, o13, o14
• Its list of investors include names such as Nexua Venture Partners, Helion Venture
Partners, Norwest Venture Partners and Draper Fisher Juvertson,
SMARTPHONE MARKET IN INDIA 2012.PPT 16

17. Brand Model
SAMPLE
Smartphone Price and Specifications (1/4)
Price (INR) Operating System Processor RAM 3G Wi‐Fi GPS
Y 56,599 X 1 GHz Dual‐Core 512 MB   
R1
1
R2
R3
R4
SMARTPHONE MARKET IN INDIA 2012.PPT 17

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SMARTPHONE MARKET IN INDIA 2012.PPT 18