India In Second Place For Nokia

By Stewart Douglas

Mobile phone giant Nokia has announced today that India is leading the way behind China as its second largest market, according to sales.

Until now, Nokia had enjoyed its second highest market in the US.  However, the announcement today reflects how far the Indian economy has come over the last few years, given that it now accounts for a greater proportion of Nokia sales.

With growing incomes and living standards throughout India, more and more people are turning to consumer luxuries like mobile phones as a reflection of status and wealth.

In fact the extent of growth in India, largely through IT and services outsourcing through cheaper labour costs, is so vast as to have significantly increased consumer prices, leading to the Reserve Bank of India intervening in interest rate and CCR policy, in an attempt to cool inflation.

Current estimates show, after substantial investment from Nokia in regional infrastructure, that there are now 118 million mobile phone users in India, of which an estimated 46% use Nokia phones, making it the single largest phone manufacturer in the market.

India, along with China, enjoys some of the most rapid economic growth on the planet.  With the economy fuelled by cheap, no frills technical outsourcing, many have predicted its rise will see it grow to be one of the world’s major players over the next few decades.

With extensive marketing and infrastructural investment in India, Nokia has managed to piggyback on the success of growth and improved living standards, currently cemented as the number one phone manufacturer in the country.

As the economy continues to grow over the coming years, Nokia looks set to scale up its 9,000 strong operations team in a bid to secure its market share, and build stable revenues from this emerging market.