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India and Indonesia Mobile Phone Market Growth

Total shipments of mobile phone handsets are expected to total 1.34 billion by 2010 and should maintain their momentum all the way to 2015 -- with more than 1.7 billion in handset shipments.

"The Asia-Pacific region currently makes the largest contribution to global handset sales," says ABI Research industry analyst Celia Bo.

Handset sales are projected to increase 9 percent this year compared to 2009, and will account for 38 percent of total shipments. China is clearly a major source of handset demand, but it is not the only one. India and Indonesia are also expanding their domestic demand.

The Indian handset market is expected to grow from 84.3 million handsets in 2009 to 104 million in 2010, a Year-over-Year growth of 24 percent. Within Indonesia, many of its 240 million people confidently purchased 33 million handsets in 2009 -- that figure is expected to surpass 37 million by the end of 2010.

Both markets have traditionally been fertile ground for Nokia distributors and dealers. In those markets, the Finnish manufacturer has enjoyed a market-share well above its global average.

Nokia has been very effective in producing ultra-low cost handsets that are robust and user-friendly and at the right price-point. However, Nokia has seen its market-share steadily eroded in the mid- to high-tiers as India's and Indonesia's aspiring middle classes purchase high-end feature phones and smartphones.

Vendors such as Samsung, LG and RIM have been net beneficiaries.

"A number of local handset vendors such as Micromax and Spice Mobile in India, and Nexian and SPC Mobile in Indonesia, are intent on catering to low-end and mid-tier end-users," notes ABI VP and practice director Kevin Burden. "Their game-plan is to push the envelope on providing increasingly feature-rich handsets at aggressive price-points."

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