Smartphone Market in India Smartphone Market in India July 2012
May 06, 2015
Smartphone Market in IndiaSmartphone Market in India
July 2012
Executive Summary
Market
Smartphone shipments in India is expected to reach ‐mn units by 20‐‐, more than double of the present figure
In the Q1 20‐‐, smartphone segment in India achieved a quarterly growth of x1% despite of global decline of smartphone sales by x2%
Drivers:
Drivers &
Amongst the smartphone platforms in India, x3 has taken the lead followed by x4
Challenges:
Low Penetration in Suburban and Rural Areas
Increase in Disposable Income and Changing Consumer BehaviourDrivers &
Challenges Security and Privacy Concerng g
Introduction and Availability of Next Generation Cellular Networks Constant Reduction in Prices
Market Trends
Multi‐Core Processor
High Resolution Touch Screen Display
Smartphone on Contract
Rise of the Phablets
SmartphonePlayer Profile
Major Players
Apple Inc. HTC Corporation Research in Motion
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yLG Electronics Nokia India Samsung India
•Introduction
S t h M k t O i•Smartphone Market Overview
•Drivers & Challenges
•Market Opportunities
•Market Trends
•Smartphone Player ProfilesSmartphone Price and Specifications
•Strategic Recommendations
•Appendix
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Appendix
Smartphones are cellular phones with wide variety of features capable of performing advanced operations
• 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
Smartphone– Overview
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• D2F1
F2 • D3
F3 • D4
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F4 • D5
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
h h h d l h f % d f l b l d l f h l b % In the Q1 20‐‐, the segment achieved a quarterly growth of a1% despite of global decline of smartphone sales by a2%
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
Mn UnitsZ%
Smartphone ‐Market Size (Shipment) Smartphone Platform ‐Market Share (20‐‐)
n4n1 n7n5Z%
YX
WV
U
n3
n8n6
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20‐‐20‐‐20‐‐20‐‐20‐‐n2
SAMPLE Smartphone Vendor Analysis – Global Top 4
Samsung •V2
•V3
•V1
Apple •V5
•V4
Apple V5•V6
•V7
Nokia•V8
•V9
RIM •V11
•V10
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•V12
Drivers & Challenges – Summary
Drivers
Increase in Disposable Income andIncrease in Disposable Income and Changing Consumer Behaviour
Introduction and Availability of Next Generation Cellular Networks
Challenges
Low Penetration in Suburban and Rural Areas
Constant Reduction in Prices
Advanced Features, Applications and Digital Contents
Security and Privacy Concern
Colossal Wireless Subscriber Base
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SAMPLE Enterprise mobility is witnessing major growth in India leading to enhanced opportunity for smartphones
Opportunity in Enterprises
• Enterprises with highly distributed workforce embrace mobile computing platforms for efficient operation & timely communicationcommunication 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
INR bne
mn
Mobile Workforce – India (Growth and Size)
F%d
cb
a
L%k
j
ih
g
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20‐‐20‐‐20‐‐20‐‐20‐‐ 20‐‐20‐‐20‐‐20‐‐20‐‐
SAMPLE Market Trends (‐/‐)
• T1• T2• T3
M1T3
• T4• T4• T5M2
• T6• T7• T8
M3
• T9• T10
T11M4
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• T11
SAMPLE Feature‐Price Trade‐Off Matrix for Smartphone Players in India
p11p10
p8
p9
p5
atures p6p4
p3
p8p5
p7
S1
Fea
p1
p2S2
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
10SMARTPHONE MARKET IN INDIA 2012.PPT
positioned lower in the matrix• q5 players compromise on some features to offer smartphones at much lower cost than the established q6 companies
SAMPLE Public: Foreign Company – Company 1 (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Products and Services
Ticker Symbol
Stock ExchangeIndia Head Office
Place
Key People
Products and Services
Category Products/Services
N D i tiC1 • S1
Name Designation
Person 1 D1
Person 2 D2
Person 3 D3
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SAMPLE Public: Foreign Company – Company 1 (2/3)
i i l S h K iFinancial Snapshot Key Ratios
Net Profit/LossTotal IncomeRevenueINR mn
ProfitINR bn
s
Particulars y‐o‐y change (2012‐11)
2011 2010 2009 2008
Profitability RatiosOperating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%
020‐‐
0
r
20‐‐20‐‐
q
20‐‐
p
Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%
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%
Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%
Financial Summary
• The company incurred a net profit of INR ‐ bn in FY 20‐‐, as compared to net profit of INR ‐ bn in FY 20‐‐
• The company reported total income of INR ‐ bn in FY 20‐‐, as compared to INR bn in FY 20
Return on Fixed Assets 28.31 319.77% 291.46% 227.97% 346.05%
Cost RatiosOperating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%
Administration costs (% of Sales)
0.49 10.10% 9.61% 9.11% 7.41%
Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%compared to INR ‐ bn in FY 20‐‐
• The company earned an operating margin of ‐ per cent in FY 20‐‐, an increase of ‐ percentage points over FY 20‐‐
• The company reported debt to equity ratio of ‐ in FY 20‐‐, a decrease of ‐ per cent over FY 20‐‐
(% )
Liquidity RatiosCurrent Ratio ‐12.79% 1.27 1.46 1.95 1.90
Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18
Leverage RatiosDebt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91
Key Financial Performance Indicators
Indicators Value (28/06/2012)Market Capitalization (INR bn) A
Total Enterprise Value (INR mn) B EPS (INR)
Debt to Capital Ratio NA NA NA NA NA
Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67
Efficiency RatiosFixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41
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
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EPS (INR) C PE Ratio (Absolute) D
Improved Decline
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
SAMPLE Public: Foreign Company – Company 1 (3/3)
Key Business Segments Key Geographic Segments
k5k1 k4k3k2 k8k7k6
Key Information
20‐‐20‐‐20‐‐20‐‐ 20‐‐20‐‐20‐‐
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
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SAMPLE Private: Domestic Company – Company 2 (1/3)
Company Information Offices and Centres – India
India Head Office
Tel No.
Fax No.Place
Products and Services
Website
Year of IncorporationIndia Head Office
Key People
Products and Services
N D i ti
Category Products/Services
Name Designation
Person 1 D1
Person 2 D2
Person 3 D3
C1 •S1
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SAMPLE i i l S h K i
Private: Domestic Company – Company 2 (2/3)
Financial Snapshot Key Ratios
Profit / Loss
Total Income
W
Total IncomeINR mn
ProfitINR mn
Particulars y‐o‐y change (2012‐11)
2011 2010 2009 2008
Profitability RatiosOperating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%
V
U
Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%
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%
Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%
Financial Summary
020‐‐20‐‐20‐‐
U
20‐‐
T
0Return on Fixed Assets 28.31 319.77% 291.46% 227.97% 346.05%
Cost RatiosOperating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%
Administration costs (% of Sales)
0.49 10.10% 9.61% 9.11% 7.41%
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 compared to net profit of INR ‐ bn in FY 20‐‐
• It reported total Income of INR ‐ bn in FY 20‐‐, as compared to INR ‐ bn in FY 20‐‐
Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%
Liquidity RatiosCurrent Ratio ‐12.79% 1.27 1.46 1.95 1.90
Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18
Leverage RatiosDebt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91
• The company earned an operating margin of ‐ per cent in FY 20‐‐, a decrease of ‐ percentage points over FY 20‐‐
• The company reported debt to equity ratio of ‐ in FY 20‐‐, an increase of ‐ per cent over FY 20‐‐
Debt to Capital Ratio NA NA NA NA NA
Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67
Efficiency RatiosFixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41
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
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Improved Decline
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
SAMPLE Private: Domestic Company – Company 2 (3/3)
Key Recent Developments
Description Details
Overview
•O1 is a leading player in technologies including real‐time bidding, data marketplaces, big 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,
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SAMPLE Smartphone Price and Specifications (1/4)
Brand Model Price (INR) Operating System Processor RAM 3G Wi‐Fi GPS
Y 56,599 X 1 GHz Dual‐Core 512 MB
1
R1R2
R3R4
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