Mobile device sales in India are forecast to reach 138.6 million in 2010, an increase of 18.5 percent over 2009 sales of 117 million units, according to Gartner, Inc. The mobile handset market is expected to show steady growth through 2014 when end user sales surpass 206 million units.

“Established global device manufacturers are losing ground due to fierce competition from local and Chinese manufacturers in the low-cost segment,” said Anshul Gupta, principal research analyst at Gartner. “Price remains the main criteria when buying any consumer electronic device in India, including a mobile device. Carrier strategies, lower tariffs and/or 3G data plans will continue to shape the mobile device market in India.”

India, contributing approximately 10 percent of worldwide sales, is an important market for manufacturers with aspirations to grow their global market share. Due to its sheer size and open market, it has attracted many global mobile device manufacturers. The market is also supported by many local manufacturers. This has led to more than 50 brands vying for consumer attention in India, besides the many brands in the black markets.

3G device sales are expected to account for 16.7 percent of total sales in 2010, up from 9.2 percent in 2009. By 2014, 3G devices sales are expected to account for 69 percent of total sales. Smartphone sales in India made up 5.2 percent of total device sales in the first quarter of 2010, and Gartner expects this share to increase to 18 percent in 2014.

“Cellular phone penetration in India stood at 45 percent in 2009, and the market is entering into a second phase of growth, with replacement sales increasing from 45 percent in 2009 to 50 percent of total sales in 2010.” said Mr. Gupta.

Gartner Inc. is the world's leading information technology research and advisory company.