Mobile phone production in India to grow to 107 mn

Written by Agencies | Bangalore, August 30: | Updated: Aug 30 2007, 20:39pm hrs
Mobile phone poduction in India is expected to grow at compund annual growth rate (CAGR) of 28.3 per cent from 31 million units in 2006 to 107 million units in 2011, IT research and advisory firm Gartner has said.

Moreover, mobile phone production revenue is expected to reach USD 13.6 billion by 2011 from USD 4.9 billion in 2006, a CAGR of 26.6 per cent, Gartner said in its latest research paper.

The growth would be fuelled mainly by the expanding mobile subscriber base in India and favourable government policies, it said.

At present, mobile phone production in the country is dominated by five global handset vendors -- Nokia, Motorola, Samsung, Sony Ericsson and LG. There are few local brands, with low production volumes which are largely focused on low-end and mid-range handsets.

However, Gartner expects new local and global players to enter the mobile phone manufacturing market in India, aided by the global electronics manufacturing services (EMS) providers' present in India.

Gartner principal research analyst Ganesh Ramamoorthy said: "Existing global handset vendors as well as new entrants will outsource their production to EMS vendors to reduce `time to market' and achieve faster penetration for their own branded handsets. This will raise EMS vendors' share of total mobile phone production in India to nearly 40 per cent by 2011."