has been losing market share to Apple
and Samsung, is seeing growth in sales
of its Windows platform based Lumia
smartphones in India and has
attributed the pick-up in volumes to
rising wealth in the country.
"In terms of what is happening in
Lumia for us in India, the volumes are
picking up quite nicely. We got a
broader portfolio in the Indian market
from (Lumia) 920 to 620 and 520
and so forth. We are very pleased
with the pick up we are seeing with
those products in India," Nokia Chief
Executive Officer Stephen Elop said
here.
The company's net sales globally of
smart devices almost halved in first
quarter ended March 31, 2013 at 6.1
million units compared to 11.9 million
units its sold in same quarter a year
ago. It saw decline of 8 per cent in
volumes on quarterly basis.
However, sales of Lumia smartphone
rose by 27 percent during the Q1,
2013 to 5.6 million units.
Nokia's Lumia phones, based on
Windows platform, are available in
India in the price range of Rs.
9,800-36,000.
Nokia CEO said India is a good
example for the company where the
company has to focus on strategy for
both high-end and entry-level mobile
phones.
"India sets that aspiration we also
recognised very large number of
people who are more constrained in
their ability to spend. I think India is a
good example where we have to do
both. There are countries around the
world where only high end plays,
United States is an example," Elop
said.
The company in US sells its phone
through telecom operators where its
"highest priced devices are subsidised
so that the actual cost appears to be
low to the consumers" because of
"operators subsidies".
Elop said, "because of growing wealth,
the growing middle and upper classes
(in India) we have a great opportunity
with Lumia and we are beginning to
capture that. The Lumia numbers are
very encouraging."
Nokia CEO, however, said challenge
for his company remains to push sales
at retail stores when people ask for its
smartphones. "In some stores, its just
iPhone and Android.
Thats our challenge to increase the
willingness of sales people to
recommend and at the same time
create enough awareness around
Lumia smartphone experience," Elop
said.
He said that company entered in to
Indian market with high-priced
smartphones around a year back and
will need to work a lot to build space
for it here.
According to data released by research
firm Gartner in November 2012,
Samsung and Apple dominated
smartphone market.
In the third quarter, Samsung became
the largest mobile handset market
with 22.9 percent of the overall
market share.
Nokia had slipped to No. 2 slot with
only 19.2 percent global share, down
from 23.9 per cent a year ago,
Gartner said. Apple was third place
with 5.5 percent, up from 3.9 percent
a year ago, it had added.
"In absolute terms, we are at lower
levels (compared to iPhone and
Android based phones). We are
starting from zero in those price bands
in India as we started just over a year
ago.
We have to built that. Samsung and
Apple have been building up for longer
period of time in the Indian market
and we have to do that," Elop said.
Nokia CEO said that he has got
feedback that Lumia product built on
Windows 8 is appealing to the Indian
consumer in the higher price band.
"It will take time but we will be able
to build that (good market share) ," he
said.
The company on May 9 chose India to
launch its next generation of low-
priced Asha 501 phones at around Rs.
5,300 ($ 99) excluding taxes. It will
be manufactured in India and it will be
available in market from June.
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