Overcrowded Mobile Handset Market

From not having enough choices to make to becoming over-crowded, the affordable mobile
market has seen it all. With smartphone usage already high, every new smartphone brings
along advanced technology and better features. The mobile phone market segment is already a
crowded place with some serious competition.

India is the world’s 2nd largest mobile handset market with each company jostling for a share in
the growing smartphone market. It is only a matter of time before players start exiting the market
amid fierce competition, low profits, and mounting debt. Some of the examples of brands
bowing out of this competitive race are Karbonn and Micromax. Both the brands rejigged their
strategy and bowed out of the INR 10,000+ price segment and focused only on the sub INR
7,000 price mobile handsets. What lies ahead is the consolidation of the market with the top 5-7
manufacturers accounting for about 80% of the market share.

Manufacturers have launched phones in the affordable mobile price segment with minute
differences and a marginal price hike. The launch of multiple smartphones to add to the portfolio
in the same price segment seem to be foolish moves from Chinese smartphone manufacturers.
Brands need to listen to the consumer and understand their needs. Brands that offer quick and
good customer service can establish credibility with the new generation, while brands that are
unable to do so are criticized on social media.

It has become important for brands to stand out from the crowd, either based on the handset
offering some great tech, its premium and sleek look, or making their experience more
memorable and pleasant. With similar features being offered within the same price range, it is
bound to make people more open-minded to accept new designs while offering more freedom to
the brands to experiment.

Overcrowded Mobile Handset Market Overcrowded Mobile Handset Market Reviewed by Ninja Tech on April 30, 2020 Rating: 5

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