Nokia has played a pioneering role in the growth of cellular technology in India, starting with the

first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network.
Nokia started its India operations in 1995, and presently operates out of offices in New Delhi,
Mumbai, Kolkata,Jaipur,Lucknow,Chennai, Bangalore, Pune and Ahmedabad. The Indian operations
comprise of the handsets business; R&D facilities in Bangalore and Mumbai; a manufacturing plant in
Chennai and a Design Studio in Bangalore.
Over the years, the company has grown manifold with its manpower strength increasing from 450
people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens
Networks). Today, India holds the distinction of being the second largest market for the company
globally.
Devices business
Nokia has established itself as the market and brand leader in the mobile devices market in India. The
company has built a diverse product portfolio to meet the needs of different consumer segments and
therefore offers devices across five categories ie. Entry, Live, Connect, Explore and Achieve. These
include products that cater to first time subscribers to advanced business devices and high
performance multimedia devices for imaging, music and gaming.
Nokia has been working closely with operators in India to increase the geographical coverage and
lower the total cost of ownership for consumers. Today, Nokia has one of the largest distribution
network with presence across 1,30,000 outlets. In addition, the company also has Nokia Priority
Dealers across the country and Nokia ‘Concept stores’ in Bangalore, Delhi, Jaipur, Hyderabad,
Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a complete mobile
experience.
Services business
With the global launch of Ovi, the company's Internet services brand name, Nokia is renewing itself
to be at the forefront of the convergence of internet and mobility. From being a product centric
company, Nokia is now focusing to become solutions centric. The strategic shift is built on Nokia’s
bid to retain consumers and empower Nokia device owners to realise the full potential of the Internet.
Nokia will build a suite of Internet based services like Nokia Maps, the Nokia Music Store and Nokia
N-Gage around its Ovi brand.
Infrastructure business
Nokia Siemens Networks is a leading global enabler of communications services. The company
provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure
solutions and addresses the growing demand for services with 20,000 service professionals
worldwide. Its operations in India include Sales & Marketing, Research & Development,
Manufacturing and Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia Siemens
Networks has 47 offices and presence in over 170 locations across the country.
R & D centers
Nokia has three Research & Development centers in India, based in Bangalore and Mumbai. These
R&D hubs are staffed by engineers who are working on next-generation packet-switched mobile
technologies and communications solutions to enhance corporate productivity.
The Center in Bangalore, the biggest R&D site in the country comprises S60 Software Organization,
Common Technologies, Next Generation now called Maemo Software, Productization and Software
& Services.
 Read More
Design Studio
Nokia has set up its first Design Studio in Bangalore in partnership with Srishti School of Art, Design
and Technology. The first of its kind, the design studio will give Nokia designers and India’s talented
youth the opportunity to work together on new design ideas for India and the global markets.
 Manufacturing in India
Nokia has set up its mobile device manufacturing facility in Chennai, India to meet the burgeoning
demand for mobile devices in the country. The manufacturing facility is operational with an
investment of USD 210 million and currently employs 8000 people. Nokia has recently announced
fresh investments to the tune of US $ 75 million towards its manufacturing plant in Sriperumbudur,
Chennai for the year 2008.
 Read More
Some firsts for Nokia in India

1995 – First mobile phone call made in India on a Nokia phone on a Nokia network
1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110
2000 - First phone with Hindi menu (Nokia 3210)
2002 - First Camera phone (Nokia 7650)
2003 - First Made for India phone, Nokia 1100
2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones
2004 - First Wi-fi Phone- Nokia Communicator (N9500)
2005 – Local UI in additional local language
2006 – Nokia manufacturing plant in Chennai
2007 – First vernacular news portal
Some Achievements for Nokia
 Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008
 Ranked the No 1. MNC in India by Businessworld, India’s leading business weekly, 2006
 Ranked as the No. 1 telecommunications equipment vendor in the country by Voice & Data
for five consecutive years –2008, 2007, 2006,2005 and 2004
 Ranked as the 9th most powerful brand by Millward Brown’s BrandZ 2008
 Ranked world’s 4th most valuable brand by Interbrand, 2007
 Ranked Asia’s most trusted brand by the Media-Synovate, 2006

How Did Nokia Succeed in the Indian Mobile Market,

While Its Rivals Got Hung Up?
Published: August 23, 2007 in India Knowledge@Wharton  

By most accounts, India is among the world's fastest-growing

markets for mobile phones. The country has some 170 million
subscribers and adds 6 million to 7 million more each month.
(China, in contrast, adds 5 million subscribers, and the U.S. 2
million subscribers a month.) Recognizing this potential, several
global telecom giants jumped into the fray when the Indian government first opened up
the country's telecom market to private enterprise in 1994. Among them, one company
-- Finland-based Nokia -- forged ahead of rivals and today commands a 58% market
share for mobile phones (also called "handsets"). In specific segments, such as GSM
telephony, Nokia's market share in India is as high as 70%. (GSM, which stands for
Global System for Mobile, is the world's most popular standard for mobile
communications.)

How did Nokia take the lead in the Indian mobile phone market, ahead of companies
such as Ericsson, Motorola, LG and Samsung? According to company executives and
industry experts, Nokia's strategy combined focusing on the mobile phone market,
establishing crucial distribution partnerships, making early investments in manufacturing
and brand-building, and developing innovative product features -- such as mobile
phones that could double as flashlights. Ravi Bapna, professor of information systems at
the Indian School of Business in Hyderabad, says, "As far as Nokia's India strategy is
concerned, the numbers speak for themselves. The company is a key cog in India's
wireless value chain, and it has used India as its emerging market lab."

The Power of Focus

D. Shivakumar, Nokia India's vice president and country manager, believes that focus
played a key role in the company's growth in India. "If you look at the [mobile phone]
landscape in 1995, anybody could have succeeded if they had done the same things as
Nokia did," he says. "But all the other companies had something else to focus on, some
other business. Nokia was completely focused on mobile phones; others had consumer
electronics, home appliances, etc." Nokia's focus was not just on handsets, of course.
The mobile infrastructure business -- then part of Nokia India -- was equally important.
But, as of April 1, 2007, Nokia's joint venture with Siemens for mobile infrastructure has
become an independent entity. Thus, Nokia India has become even more sharply
focused.

Being ahead of the curve was another component of Nokia's strategy. "We invested
before everybody else -- in the brand, in people, in distribution," says Shivakumar. Adds
Pankaj Mahendroo, president of the Indian Cellular Association: "Nokia invested in each
vertical of the handset ecosystem -- manufacturing, distribution and design R&D."

Nokia has invested more than $1 billion in India so far, and company headquarters at
Helsinki has repeatedly said that more funds will be made available if required. The
Indian company had revenues of more than $3.5 billion in 2006, which means there is
also money to be reinvested. (The company does not disclose its profit numbers.)

The Distribution Edge

Investment in people is difficult to judge; every company claims to have the best talent
in the business. But when it comes to distribution, Nokia's lead is clear. Today, India has
some 95,000 outlets that sell mobile phones. "In 50,000 of them -- and that's a
conservative estimate -- only one brand is available, Nokia," says Shivakumar.

Nokia started distributing its phones through a partnership with HCL (formerly Hindustan
Computers Ltd.), which had already built an extensive network for its own products.
Recently, Nokia has decided to supplement that with its own distribution efforts. "Both
companies realized that there was a tremendous growth opportunity and it was best that
we utilized the resources of both organizations in an optimum manner," says Nokia India
director of sales Sunil Dutt. "We decided that we would address some markets jointly,
and that we would individually address some of the other markets."

While Dutt does not spell out how the two partners will divide the markets, some clues
exist in the way demand is shaping up. In the cities where the market is maturing,
buyers are looking at more sophisticated mobile phones, such as Nokia's E-series phones
(which serve business users) and the N-series (which have multimedia features). In rural
India -- which constitutes 70% of the population -- affordability is an issue. So there is a
different range for this constituency.

The price points sometimes dictate the type of outlet. "As the [telecom] operator
footprint expands into different markets, all kinds of retail outlets get into selling mobile
phones and airtime connections," says Dutt. "People who have been selling consumer
electronics, STD booth owners and even cloth merchants get into this business." A
stationery store stocks mobiles in a corner; a mom-and-pop grocery store moves beyond
rice and lentils. "Then there are people with existing businesses who decide to set up a
separate shop only for mobile phones," he continues. "And why do they feel the need to
set up a different outlet? In this business, customer engagement … requires a completely
different approach. Even the retail outlets realize this and [have started] separating the
two businesses."

Dutt notes that in the mature urban markets, "such as the metros and Tier I towns
where mobility has been around for a few years, customer expectations are more
evolved, and are continuously evolving. Our task here is to provide our people with
relevant competency and skills sets." Nokia has begun to set up concept stores -- seven
so far -- in Indian cities. "At our concept stores, we have tried to bring to life all the
experiences that we offer at Nokia experiential zones across the world," he adds.

Investment in Manufacturing

The other big investment area that has set Nokia apart from other telecom firms is
manufacturing facilities and R&D. Nokia has several R&D centers and labs in India. More
importantly, it established a $150 million handset manufacturing facility in Chennai in
2005. The total production at this unit has crossed 25 million handsets. "Some 30% of
our production is being exported to neighboring countries," says Sachin Saxena, Nokia
India director of operations in charge of the factory.

Other companies, such as Motorola, LG and Samsung, have also lined up similar
investments or are in the process of setting up manufacturing units, but Nokia has had a
clear head start. Also, the Chennai factory is devoted to handsets, whereas other
companies are planning to make a whole range of consumer electronics products.
"Domestic manufacturing has worked to Nokia's advantage," says Ravinder Zutshi,
deputy managing director, Samsung India Electronics. "Samsung India is looking at
making its Chennai facility a global hub for its consumer electronics products."

Industry analysts note that Nokia's strategy is potentially risky. When the going is good
-- as it is now -- the company can do well. But Samsung's approach is more flexible,
these analysts note. If demand for mobile phones were to slump, Samsung could switch
its manufacturing lines to other products. In contrast, Nokia India's focus on mobile
phones mirrors the priorities of its parent company. Nokia traditionally was in a whole
range of businesses -- from toilet paper to power. But in 1993, CEO Jorma Ollila decided
to sell off everything else and concentrate on mobile telephony.

Building the Brand

Another crucial aspect of Nokia's investment strategy focused on building its brand.
Here, the company ran into a problem. The Nokia range available in India extends from
Rs 1,499 ($37) at the lower end to Rs 45,000 ($1,125) at the high end. Marketing
theory says a brand cannot be all things to all people. This is the reason that Hindustan
Unilever, with quality built around its brand, refused to match Nirma, which came out
with a cheap detergent. This is also why Eveready, the battery manufacturer, refused to
lower prices when faced with a Chinese challenger in the dry cell market.

But Nokia has a problem promoting other brands under its corporate umbrella. "Unlike
the FMCG (fast-moving consumer goods) market -- where the product lifecycle is at least
10 and sometimes 50-100 years -- models have a lifespan of 15-24 months here," says
Devinder Kishore, Nokia India's director of marketing. With such a lifecycle, promoting
various models would mean watching money go down the drain in a couple of years.

Instead, Nokia is promoting platforms -- music, for instance. With this approach, one
model can replace another while the branding remains the same, or is extended slightly
with the E series and N series. "Nokia has done well to focus on the 'mother' brand
rather than on 'another' brand," says Jagdeep Kapoor, chairman and managing director
of Samsika Marketing Consultants. Kapoor, who has written several books on brand
management, says that Nokia has understood the Indian market by straddling all
segments: the high, the middle and the low end. "The company has created a ladder for
consumers to climb from the low end to the middle end to the high end, while being fully
assured that they will be with the mother brand Nokia."

Kapoor views the Nokia brand in terms of his proprietary "REAPS" model, which takes
into account five needs -- rational, emotional, aspirational, physical and spiritual -- of
the Indian consumer. "Nokia as a brand has been able to address all the five needs to
various degrees at various stages," he says. "The rational need of quality versus price
has been met across price segments with options. The emotional need of being able to
keep in touch with near and dear ones during times of joy and sorrow is being
adequately fulfilled. The aspirational need with the new models and features and the
look-good approach has helped the brand become a sought-after, must-have brand. The
physical need has been taken care of through size and comfort. And, finally, the spiritual
need has been met through (local) languages and people --whether they are 18 or 80 --
being able to greet one another via SMS [text messages] during religious festivals."

ISB's Bapna offers a prescription for Nokia. "Going forward with the premise that the
mobile infrastructure will serve as India's information infrastructure -- given the lack of
substitute physical and digital infrastructure -- I would encourage Nokia to take a more
active role in nurturing content and application-creation communities that bring a range
of services to all layers of the population," he says. "It's in [Nokia's] own interest to do
so."

Products for India

The Nokia story in India has not been about grafting a model that has worked abroad. In
fact some of its models -- the handsets, not the strategies -- are unique to India.
Consider this example: It would probably be inconceivable to mobile phone users in the
U.S. or Europe that their mobile phones should incorporate a flashlight, or torch. But in
India -- where large numbers of the rural population do not have electricity, and power
cuts are commonplace even in the cities -- having a torch built into a mobile phone is a
distinct and tangible benefit. The Nokia 1100, the first made-for-India phone, has been a
runaway success. Manufactured at Chennai, it is also being exported. The 1100
incorporates a torch, an alarm clock and a radio. "Innovation is something which
consumers reward in this market," says Shivakumar.

Similar plans are in the works at Nokia's three India R&D labs, which employ 700 people.
For obvious reasons, most of the activity is under wraps. Nokia is, however, willing to
talk about the "shared" phone. This is, again, something that mobile phone users in
affluent countries might find puzzling, but the concept is simple. For reasons of
affordability, in rural areas a phone may be shared by several people. The models being
launched to cater to this need will have separate address books, individual billings and
more. Will it work? People initially doubted the torch phone, too, but it became a popular
product.

Shivakumar offers some reasons to explain why he thinks the Indian market is different
and needs out-of-the-box thinking. "Fundamental consumer differences exist between
India and other countries," he says. "A cell phone is a huge style icon for the Indian
masses: 62% of Indians buy a cell phone because of its looks. That is something that is
not true anywhere else in the world. It's as huge a style statement as your watch, pen,
cufflinks or bag. Hence, the brand matters quite a lot.

"Second, it is a safety product for women in small towns, because with a cell phone you
are in touch all the time; you're accessible. Next, it is a huge productivity vehicle. When
somebody calls you, you do not need to take your bike out; you don't need to take your
car out. You make a phone call and it's over.

"It is also a driver of a lot of economic activity. If you go down the roads of Gurgaon and
Delhi, you will find that lots of people have written their [mobile] phone numbers on the
walls -- a plumber, an artisan, a carpenter, a tailor. I think the whole service sector has
gotten a huge lift, thanks to this. This has killed the visiting card business…. It is also the
ultimate entertainment device. You have music on it now, in terms of radio and stored
music. The day is not far when you will see movie clips and TV. One of our products has
that, so that's TV on the go."

An Expanding Market

The Indian market for mobile phones, in addition to its base of 170 million subscribers, is
also one of the most cost-effective in the world. Call rates in India are a-mong the
lowest anywhere -- making a mobile phone call costs two cents in India, compared with
about four cents in China. The market also has tremendous growth potential. So far,
most of the growth has been penetration-led, which means placing devices in
consumers' hands. The bulk of the growth going forward will be replacement-led, where
consumers come back for more. In India, consumers tend to change their phones faster
than in most other places. And whenever they change their phone, 60% are willing to
pay a higher price.

Shivakumar offers examples of future services that might be delivered over cell phones.
"The cell phone could be the future bank -- a full branch of the bank. You don't need 20
people, a security guard or a vault. This is a passbook plus bank rolled into one. It can
be your payment system." Another possible use is navigation, where cell phones could
be used to provide maps of an area where the user is based. Such services, whenever
they are launched, could help Nokia keep going and growing in India.
 Though the mobile industry have been bombarded with thousands of manufacturers, but Nokia still holds to be the largest
mobile manufacturer till date. The mobile pundits clearly expects a huge comeback of the Finnish mobile giant with the
launch of Nokia N8, which is also assumed to be the iPhone killer. Well, thats a different story altogether. Today we will take
you through the interesting history of Nokia. Don’t worry, History is not always boring & I will not take long.

History of Nokia:

 The company started in 1865 as a paper mill in southern Finland. However, the name “Nokia” was derived from the
banks of “Nokianvirta river” where the second mill was built a few years later.

 Nokia then entered into rubber & paper works. In 1979, it merged with Finnish television maker “Salora” to form a
radio telephone company “Mobira Oy”

 In 1984 Nokia launched first portable phone which was usually installed in cars. It introduced the first handheld
device in 1987 & the first GSM mobile in 1991. On July 1, 1991, Finnish Prime Minister Harri Holkeri made
theworld’s first GSM call, using Nokia equipment.

 In 1992 Nokia’s first GSM phone was launched to public. The model was named “Nokia 1011” based on the date of
launch. i.e. 10th of November.

 In 1994, the first satellite call was made using Nokia GSM handset and by 1998 Nokia became a world leader in
mobile phone.

 Nokia also has the credit to take the internet on mobile. In 1999 it launched the first WAP enabled handset, “Nokia
7110”.

 In 2002, Nokia launched its first 3G phone followed by N-gage in 2003 & N-series in 2005. Year 2005 is remarkable
as the company sold its billionth phone in this year.

 Today Nokia also take the throne of world’s largest Digital Camera seller as the sell of camera equipped mobiles have
crossed the sale of independent digital camera.

We can’t predict about the future performance of Nokia but one thing is for sure, Nokia has a remarkable share in the origin &
growth of overall mobile industry & they must be proud for it.

Market Share
Nokia losing market share is no big news, but its a big news when the story is happening in India or
any other emerging market, where Nokia always had a strong hold.

We earlier shared a report by IDC India on the growth of mobile sales in India (for 2009) and some of
the key numbers from the report were:
 Nokia market share in India fell from 56.2% share in 2008 to 54.1% in 2009.
 Local players have grabbed 17.5% market share [from 0.9%, a year back]
 Only 5 local manufacturers in 2008 and the number stands at 28 now!
 Samsung’s share rose marginally to 9.7% from 9.5%
Nothing much has changed in 2010 and here are the latest figures (comparison between ‘08-09 and
‘09-10, from Voice&Data)

 Nokia market share dipped from 64% in ‘08-09 to 52.2% in ‘09-10.

 Samsung gained the market share – 10% to 17.4% in ‘09-10.
 LG’s market share increased marginally from 4.5% to 5.9%.
 Losers include Sony Ericsson (market share fell from 6% to 3%), Motorola (3.5% to 1%), ZTE
(5.6% to 1.9%).
 Micromax has been one of the major winners, from nothing to 4.1% [drive by huge advertising
during IPL].
 Karbonn’s market share too increased to 3%  – via
As per Industry estimates, 108 million mobile phones were sold in the country in 2009-10, resulting
in sales of Rs 27,000 crore as against Rs 25,910 crore during the previous year.

Nokia’s revenue too fell from Rs16,567 crore to Rs14,100 crore and the company is now betting big
on services like messaging, life tools and digital music.

Quick snapshot of Nokia’s presence in India

 Launched 22 devices during FY 2009-10 (Nokia N8,N9..How many phones will Nokia Launch
to combat an iPhone?)
 45% of its 2 lakh retail outlets are in the rural areas
 Crossed production of 350 mn handsets in April 2010
In India, Nokia is betting big on life tools products even though the company seems to be losing the
smartphone war.

We have been quite vocal in talking about the loss of strategy at Nokia and even though the above
market share numbers need not be truly correct, the writing is on the wall.

Not just market share, Nokia is losing mind share too and is desperately looking for 1100 magic
(Nokia enters Dual SIM Phone Market with C2).
Micromax
Micromax Mobile Phones has established itself as a leader in Wireless
Telecommunication Industry through extensive research in the electronics
manufacturing field. The Micromax Mobile Phones focuses on latest technology
and innovation. Micromax has been a pioneer in creating extensive mobile phone
solutions and wireless technologies that target various segments of the society
whether you are a business professional, student, college goers or home user.
Micromax Mobile Price is very affordable and is truly value for money. Micromax
Mobile Phones have done continuous research and has become a leader in the
mobile manufacturing space in India.

Micromax Mobile Phones has launched various models in India. The new
Micromax Mobile X360 Phone is equipped with a Dual-SIM GSM Music-
centric mobile phone. The key features of the new Micromax X360 Mobile
Phone is equipped with a Multi Format Music Player with Yamaha &
Wolfson Amplifiers. This micromax mobile phone has an inbuilt Stereo FM
Radio/Recorder and a 1.3 Mega Pixels integrated CMOS Camera. Other
features included are Bluetooth (A2DP), Expandable Memory (up to 8GB)
and Video Recorder/Player.

Micromax X310 Mobile Phone is a Dual GSM-Tri Band handset. It is a light

weight phone weighing 74 grams. Micromax X310 Mobile Phone supports
Multi Format Music Player, SMS / MMS, expandable memory up to 8GB
and inbuilt Stereo FM Radio/Recorder. This Micromax Mobile supports an
integrated 1.3MP Camera, connectivity options like Bluetooth (A2DP) and
GPRS/WAP/MMS. The Micromax X310 Mobile Phone has Video
Recorder/Player

Micromax X116 Mobile Phone is equipped with Dual SIM-Dual Standby

mode a Marathon Battery. It has a standby Time of 30 Days and Talk
Time of 15 hours. The Micromax X116 Mobile Phone has an inbuilt stereo
FM Radio and an MP3 Player. Micromax X116 Mobile Phone offers
connectivity options like GPRS, WAP and MMS. Micromax X116 Mobile
Phone has an expandable Memory of up to 8GB.

Micromax Ezpad Q3 Mobile Phone is one the popular models by Micromax

Mobile Phones. This Micromax Mobile Phone supports a QWERTY Keypad
and comes Preloaded with mobile social messenger (Nimbuzz). This
Micromax Mobile Phone is targeted towards business users and today's
youth who want to stay connected with social networking sites. Micromax
Ezpad Q3 Mobile is priced at approx 4400, making it an affordable mobile
for all users.

For the latest Micromax Mobile Price visit consumermate.com

John Wells is an expert in personal electronic gadgets including
laptops, Lava Mobile , LCD Tvs andLenovo Laptops, and many more. Read
the Expert Reviews and Users Reviews of your gadgets at
consumermate.com