
In India's fertile mobile landscape, dominated by Chinese manufacturers
(along with South Korean giant Samsung at the top) an urge to obtain
"signature" handsets has charmed buyers from diverse fields -- from
telecom honchos to cricket moguls, from Bollywood heartthrobs to now
e-commerce giants.
The scope is huge -- amid razor-thin profits
-- with several smartphones now being launched across the price spectrum
every quarter.
The truth is that not all will have profitable
quarters and most won't survive, but then, it is a lucrative business
and if things are set in motion from the word go, one may enter the top
10 slots in India in about one-two years of consistent growth.
Will Flipkart be successful with its somewhat mid-segment yet affordable device named "Billion Capture+"?
"The
landscape today is dominated by Chinese-owned brands and it is high
time that Indian design and engineering got a fair chance in this field.
The Billion Capture+ is hence designed, engineered, manufactured and
tested in India," Hrishikesh Thite, Category Head, Billion at Flipkart,
told IANS.
"We arrived at the specifications of the Billion
Capture+ after analysing millions of customer reviews on Flipkart. This
launch should fill some critical gaps between customer aspirations and
what is currently on offer in the market," Thite added.
The
Flipkart device comes in two variants. The Rs 10,999 model will house
3GB RAM and 32GB internal storage while the Rs 12,999 handset will come
with 4GB RAM and 64GB ROM.
"We have partnered with multiple
designers, developers and manufacturers across the country who have all
brought in their understanding of the Indian customer and their
expertise -- in design or in engineering," Thite explained.
The
device is being manufactured in Noida. Bengaluru-based Artificial
Intelligence (AI)-startup Smartron has provided software engineering and
design for the phone. According to Flipkart, the unlimited Cloud
storage is provided through Smartron's India-based servers.
"More
and more smartphone buyers are already buying their phones online given
the large selection at their disposal. We plan to offer the phone
exclusively on Flipkart," Thite noted.
Analysts, however, are divided on the future of the device.
"It
will certainly be very interesting to see how this move by Flipkart
pans out. Flipkart, of course, has advantages of long experience and
data about consumer behaviour of online buyers," Navkendar Singh, Senior
Research Manager at IDC India, told IANS.
Moreover, Singh added,
Flipkart is getting into the $100-$200 (Rs 6,500-Rs 13,000) smartphone
segment which, despite being hyper-competitive, constitutes almost half
of the Indian market.
The Flipkart move should be seen from two viewpoints.
"Reducing
dependency on partners (read smartphone brands) for getting more
control over design and supply side of the device and for improved
margins and earnings from smartphone sales," Singh said.
According
to Tarun Pathak, Associate Director, Mobile Devices and Ecosystems,
Counterpoint Research, being one of the fastest-growing smartphone
markets globally, India continues to be an attractive destination for
mobile original equipment manufacturers (OEMs) and other ecosystem
players.
"However, in order to be successful, players need to
target a diverse set of user base with their value-for-money and
differentiated offerings. Just launching a device might not shake things
at the ground level," Pathak told IANS, adding that Flipkart needs to
do more than just place the device in the online channel.
The
competitors in the mid-segment have grown over a period of years and now
have deep expertise in hardware sourcing. More than that, they are
better placed at spotting trends and are able to quickly align their
portfolio accordingly.
"Flipkart needs a strong overall strategy, from hardware to bundling to execute," Pathak added.
According
to Faisal Kawoosa, Principal Analyst, Telecom and ESDM, CyberMedia
Research (CMR), Flipkart's strength is not in products but in
facilitating their sales. "I don't see the device being a major
disruptor," he told IANS.
It is pertinent to note that the market dynamics have changed a lot in the last few quarters.
The
fight for customers' mind-space and retail-shelf space is increasingly
getting difficult and expensive; China-based vendors are able to build
brands across both online and offline channels and consumers are
demanding the latest design and highest specifications at an affordable
price.
"These can certainly present a few challenges for Flipkart as it starts its own smartphone business," Singh noted.
Thite, however, is upbeat.
"Given
the large and diverse consumer base, there is space for a multitude of
offerings from both e-tailers and manufacturers. We believe that
different brands should continue to innovate and bring new offerings for
the customer," Thite stressed.
"At the same time, we will also
continue to look for need gaps specifically in the Indian market and put
out 'Made for India' offerings," the Flipkart executive told IANS.
IANS