NEW
DELHI: Caught between a market leader busy ramping up its offerings and a bunch
of domestic players making long strides in the marketplace, mobile handset
makers such as Samsung, LG and Sony Ericsson are betting on services and free
apps to boost sales.
Samsung Electronics, the world’s second
largest mobile handset maker after Nokia, will soon roll out smartphones based
on a new in-house operating system platform, BADA, which will enable users to
download music, maps, games and access interactive features online.
LG Electronics, the country’s largest consumer electronics
firm, and Sony Ericsson too are ramping up applications, music and games
available on their online stores as services fast become a key differentiator in
the handset market that has of late seen a slew of domestic firms such as
Micromax, Karbonn and Intex making large inroads and new established brands like
Videocon and Onida entering the field.
“The integration of
mobile handsets with services is really the future of telephony in India.
Consumers, both rural and urban, expect more than just a handset from marketers
and they are responding to what consumers expect,” says Shravani Sen, head
and director, qualitative division, at market research firm Synovate
India.
Already about 10% of the 525 million mobile subscribers in
the country (December 2009) uses online services provided by handset makers,
according to industry experts. And the number is galloping as curiosity makes
consumers try out online services.
Also, about 12% of the service
providers' revenues come from mobile value-added services (MVAS) and data
services such as ringtones, music and navigation.
“We have
been focusing more on open operating system mobiles since many key
characteristics of smart phones are becoming more important now,” says
Ranjit Yadav , director, mobile and IT, at Samsung India. “Mobile
internet, messaging features, strong third party applications and flexibility
for customisation are areas we are looking at developing.”
The
company already has phones that operate on Microsoft Windows Mobile and
Google’s Android platforms that offer online services. But Samsung is
entering the market with own system as well to open a new revenue stream.
It’s also spurred by the initial response to Nokia’s Ovi store
that’s seeing more than one million downloads a day.
“We
have seen a marked shift in consumer behaviour with the handset emerging much
beyond a voice device to become the consumers’
information/commerce/multimedia tool,” says Viral Oza, head, activation,
media and online marketing, at Nokia India. The company on Monday announced the
world’s first money transfer platform through mobile phones in India.
Nokia had last month announced free satellite navigation system to
its smartphone users to take on Google’s Android platform as well as to
catch up with Apple iPhone and RIM’s BlackBerry in the smartphone market.
More than three million Ovi Maps have been downloaded to date.
“It is more important now than ever to give consumers a
complete offering, the right mix of software and handset hardware,” says
Sudhin Mathur, business group head, mobile communication, at LG India, which has
1,400 applications on business, healthcare, games and utilities available for
download in its online applications store.
Sony Ericsson’s
playnow online application store offers music and game downloads including
latest launches like Satio, Aino, Yari and Naite.
While most handset
players offer most of their offerings free online, ultimately they want to
replicate Apple’s iTune store that has attracted millions of users
globally and has become a big alternate revenue stream for the American handset
company.
The mobile phone market in India is worth 130 million
handsets annually. While the big boys like Nokia, Samsung, LG, Motorola and Sony
Ericsson make up for 70% share, the market has of late seen a slew of domestic
firms such as Micromax, Karbonn and Intex making large inroads and new
established brands like Videocon and Onida entering the field.
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