January 18, 2008

Bad News for Ultra-Low-Cost Cellphones – Users in India Want Full-featured Handsets

The emerging category of “ultra low-cost handset” (ULCH) is seen as a key component in attracting the “next billion” mobile phone subscribers into the market, reports In-Stat (http://www.in-stat.com).  However, In-Stat has found in a survey of consumers in India who are likely to purchase a low-cost handset show a strong preference for cell phones with advanced features, rather than stripped-down ultra low-cost cellphones offering only the most basic communication experience of voice and text messaging.

The ultra low-cost handset may be a driver in bringing the next billion users to cellular. But refurbished and low-cost feature cell phones may have even more impact in expanding usage in developing countries, especially where users have already experienced cell phone ownership and enjoyed the benefits of advanced features.

Recent research by In-Stat found the following:

• The greatest interest in advanced features is among people who have already used cell phones extensively.
  
• Residents of major Indian cities are more likely to prefer full-featured cell phones.
  
• Battery life is a key purchase factor in a country with poor basic infrastructure.
  
• The average price survey respondents expect to pay for a mobile phone is US$40.

This Market Alert is drawn from the In-Stat research,  India Wants Full-Featured Cellphones (#IN0703613AW), which covers the market for cell phone handsets in India. It provides results of an extensive survey of Indian consumer attitudes toward low-cost handsets. It includes a forecast of Indian cell phone subscribers through 2012. Extensive analysis of the Indian cell phone market is also provided.

For more information on this research or to purchase it online, please visit: http://www.instat.com/catalog/wcatalogue.asp?id=236 or contact a sales representative: http://www.instat.com/sales.asp

The price is $3,495 (US).

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.