iPhones, Galaxy S phones being beaten by cheaper Indian smart-phones: Bloomberg

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    Very costly smart-phones like Apple’s iPhones and Samsung’s Galaxy S phones are being beaten by cheaper Indian smart-phones, says a Bloomberg report

    Google and Samsung are being left behind by local and home-grown smart-phone vendors in India. Companies like Lava, Micromax and Karbonn are attracting far bigger market share than their international heavyweights. But the competition posed by these smart-phone manufacturers in not in the top end category, but low-end, entry level handsets.

    The Indian companies are making available entry level smart phones at unbelievably low rates. For approximately Rs 5000 ($95), Micromax recently introduced a 5 inch phablet running on Android. Karbonn just introduced a 4.5 inch smart-phone with rather good specifications including 5 mega pixel camera, good display quality of 854x480p resolution, 1 GHz processor and other decent specifications. This is a decent handset that runs on Ice Cream Sandwich. Apple’s iPhone 4 that comes with almost the same specifications costs around Rs 25000 in the Indian market and a Samsung smart-phone with almost similar specs will cost somewhere around Rs 17000-18000. This Karbonn handset costs less than one third of iPhone 4 and less than half of a Sammy handset with matching specifications.

    This is not the only handset of the sort. Micromax recently introduced a similar handset Ninja A91 and Lava launched Iris 455 that comes with 4.5 display, Android Jelly Bean and price tag of Rs 8,499. So why anyone will go for very costly Apple and Sammy handset? Last month Samsung introduced its much talked about Galaxy Grand, a 5 inch phablet with forgettable specifications and a price tag of Rs 21000. Micromax introduced its A116 Canvas HD with impressive specifications and a price tag that was at least Rs 6000 lower than Galaxy Grand.

    An IDC report predicts India to become the third largest smart-phone market after China and USA by 2017 and eventually second biggest smart-phone market after China. A report by Bloomberg while discussing the fast growth of local smart-phone vendors says, “Micromax, which ranked second by shipments, and fifth- placed Karbonn are growing faster, according to IDC. Micromax increased shipments to 633,000 smartphones in the last quarter of 2012 from 9,990 a year earlier, while Karbonn grew to 304,000 from zero, according to Gurgaon-based Consumer Media Research. Karbonn introduced smartphones in April 2012, said Shashin Devsare, executive director at the handset seller”. So things are looking very rosy for Indian smart-phone manufacturer and the road ahead is going to be very tough for multinational corporations like Apple and Samsung due to the increased competition they are facing from local players.