A STUDY TO UNDERSTAND

CONSUMER PREFERENCE OF
MOBILE PHONES

NAME: Vibhor Rathi

Class: B. Com(honors) 3rd year

Project Mentor:
Prof. Pushpendra Jain Sir
Prof. Harsha Dudhoria ma’am
Acknowledgement
 Objectives
#To know the preference of consumer for market place.
#To understand the market standing of Apple,One plus amd Samsung
O

Introduction:
Smartphones are a class of mobile phones and of multi-purpose mobile
computing devices. They are distinguished from feature phones by their stronger
hardware capabilities and extensive mobile operating systems, which facilitate
wider software, internet (including web browsing over mobile broadband),
and multimedia functionality (including music, video, cameras, and gaming), alongside
core phone functions such as voice calls and text messaging. Smartphones typically
contain a number of metal–oxide–semiconductor (MOS) integrated circuit (IC) chips,
include various sensors that can be leveraged by their software (such as
a magnetometer, proximity sensors, barometer, gyroscope, or accelerometer), and
support wireless communications protocols (such as Bluetooth, Wi-Fi, or satellite
navigation).
Early smartphones were marketed primarily towards the enterprise market,
attempting to bridge the functionality of standalone personal digital assistant (PDA)
devices with support for cellular telephony, but were limited by their bulky form, short
battery life, slow analog cellular networks, and the immaturity of wireless data
services. These issues were eventually resolved with the exponential
scaling and miniaturization of MOS transistors down to sub-micron levels , the
improved lithium-ion battery, faster digital mobile data networks, and more
mature software platforms that allowed mobile device ecosystems to develop
independently of data providers.
Since 1996, smartphone shipments have had positive growth. In November
2011, 27% of all photographs created were taken with camera-equipped
smartphones.[152] In September 2012, a study concluded that 4 out of 5
smartphone owners use the device to shop online.[153] Global smartphone
sales surpassed the sales figures for feature phones in early 2013.
[3] Worldwide shipments of smartphones topped 1 billion units in 2013, up 38%
from 2012's 725 million, while comprising a 55% share of the mobile phone
market in 2013, up from 42% in 2012. In 2013, smartphone sales began to
decline for the first time.[154][155] In Q1 2016 for the first time the shipments
dropped by 3 percent year on year. The situation was caused by the maturing
China market.[156] A report by NPD shows that fewer than 10% of US citizens
have bought $1,000+ smartphones, as they are too expensive for most people,
without introducing particularly innovative features, and
amid Huawei, Oppo and Xiaomi introducing products with similar feature sets
for lower prices.[157][158][159] In 2019, smartphone sales declined by 3.2%, the
largest in smartphone history, while China and India were credited with driving
most smartphone sales worldwide.[160] It is predicted that widespread adoption
of 5G will help drive new smartphone sales.
In 2011, Samsung had the highest shipment market share worldwide, followed
by Apple. In 2013, Samsung had 31.3% market share, a slight increase from
30.3% in 2012, while Apple was at 15.3%, a decrease from 18.7% in 2012.
Huawei, LG and Lenovo were at about 5% each, significantly better than 2012
figures, while others had about 40%, the same as the previous years figure.
Only Apple lost market share, although their shipment volume still increased by
12.9%; the rest had significant increases in shipment volumes of 36–92%.
[166] In Q1 2014, Samsung had a 31% share and Apple had 16%.[167] In Q4
2014, Apple had a 20.4% share and Samsung had 19.9%.[168] In Q2 2016,
Samsung had a 22.3% share and Apple had 12.9%.[163] In Q1 2017, IDC
reported that Samsung was first placed, with 80 million units, followed by Apple
with 50.8 million, Huawei with 34.6 million, Oppo with 25.5 million and Vivo with
22.7 million.
 Objectives

Reviews
If you have seen long queues outside Apple Authorised Reseller stores waiting
for hours to grab new iPhones, the picture is clear: smartphone industry in India
is not impacted by economic slowdown and is, in fact, moving towards a record
festive quarter this year.

Apple is in for a bumper festive season sales and the iPhone 11 series –
starting from Rs 58,900 -- has registered very strong demand from the
consumers in the country.

The iPhone 11 demand is so high that the premium devices went out of stock
on both Amazon.in as well as Flipkart within three days of the opening of pre-
bookings on September 20.

Samsung India is targeting business worth Rs 3,000 crore by selling over 20

lakh smartphones online before diyas are lit pan-India on October 27.

Chinese smartphone maker OnePlus on Tuesday announced it has clocked Rs

500 crore in revenue in just two days of the Amazon Great Indian Festival sale.
OnePlus has seen over 100 per cent growth as compared to the previous year.

The India smartphone market saw highest ever second quarter shipment of 3.69
crore in the second quarter of 2019, with a 9.9 percent year-on-year and 14.8
per cent quarter-on-quarter growth, according to the International Data
Corporation (IDC).

A total of 6.93 crore mobile phones were shipped to India in Q2 of 2019, which
was up 7.6 percent over the previous quarter. Xiaomi, Samsung, Vivo, OPPO
and Realme were the top five brands.
With economic slowdown beginning to adversely affect several industries in the
country, Xiaomi India says smartphone sales would remain insulated from the
impact as the festive season inches closer.

"We keep hearing regarding the economic slowdown at the macro level. We
have seen smartphone market growing at over 8-9 per cent in the first half of
the year and based on these figures, we expect same growth, even more, in the
upcoming festive season," Raghu Reddy, Head of Categories and Online Sales,
Xiaomi India, told IANS.

"People cannot live without smartphones. If an existing phone stops working,

one would buy a new one. We believe it would be the last sector to get
impacted,'' Reddy added.

The online smartphone market grew 26 per cent year-on-year during the second
quarter of 2019.

Xiaomi alone captured around 46 per cent of the online market in Q2 of 2019,
according to the latest research from Counterpoint's Market Monitor service.
Redmi Note 7 Pro series, Redmi 6A, Redmi Note 6 Pro and Redmi Go
contributed more than two-thirds of Xiaomi's total online sales.

New launches and multiple sale events also drove the growth during the
quarter.

"Brands and even channels are now diversifying their channel/platform strategy
to increase their reach in India. For example, Amazon recently infused $404
million in its India business and is also investing heavily in Future Retail Group
to strengthen its offline footprint in the Indian market," said Tarun Pathak,
Associate Director at Counterpoint Research.

People are making a beeline to buy smartphones during the ongoing Amazon
and Flipkart festive season sales which shows there is no slowdown when it
comes to taking selfies or playing games on mobile handsets.
The online festive sales on e-commerce platforms will lead to an addition of 60
lakh new 4G smartphone user base in the country, says market research
agency techARC.

The online festive season will see users upgrading to 4G smartphones from
existing 2G and 3G devices and an estimated 1 crore smartphones will be sold
during the festive season.

"Riding on the attractive offers expected during online festive sales period, we
expect existing 2G and 3G smartphone users to take advantage and upgrade to
the latest commercially available technology in smartphones," Faisal Kawoosa,
Founder and Chief Analyst, techARC, told IANS.

Even the Rs 1.65 lakh Samsung "Galaxy Fold" is expecting a good response in
the Indian market. This shows that people are willing to spend more to own
high-end smartphones.

- CNBC
Chinese smartphone manufacturer OnePlus has, for the first time, surpassed
Samsung and Apple to become the fast-growing premium (price of
over ₹30,000) smartphone brand in India, according to Counter Point, a Hong-
Kong-based research firm.
OnePlus was also the fastest-growing brand in the premium segment while
shipments for Apple and Samsung declined year-on-year. It captured 40 per
cent of the market driven by record shipments of its OnePlus 6.
Samsung captured 34 per cent share of the premium segment. Its shipments
declined 25 per cent year-on-year due to drop in shipments of S9 as compared
to S8 last year. However, promotions related to S9 remain strong which helped
to push sales.
Apple’s share in the premium segment reached its lowest ever 14 per cent due
to decline in shipments for iPhone 8 and X series. Additionally, the increase in
import duty and absence of local manufacturing impacted its pricing strategy in
India. Apple is also looking to streamline its channel structure in India, the report
said.
OnePlus surpassing Samsung and Apple was due to strong sales of its flagship
OnePlus 6, which was launched during the quarter. India remains an important
market for OnePlus, contributing to almost a third of its global revenue. Each
new model launched by OnePlus sees good sales thanks to word of mouth
reference from existing customers and also because the company effectively
leverages social media, the report said. The premium smartphone segment
grew 19 per cent annually and 10 per cent sequentially during the second
quarter ended June. Samsung captured over a third of the total premium
smartphone market during the quarter with promotions around its flagship S9
series remaining strong, the report said without giving number.

-THE HINDU BUSINESS

Apple:
Apple Inc. is an American multinational technology company headquartered
in Cupertino, California, that designs, develops, and sells consumer
electronics, computer software, and online services. It is considered one of the Big
Four technology companies, along with Amazon, Google, and Facebook.
The company's hardware products include the iPhone smartphone, the iPad tablet
computer, the Mac personal computer, the iPod portable media player, the Apple
Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds
and the HomePod smart speaker. Apple's software includes
the macOS, iOS, iPadOS, watchOS, and tvOS operating systems, the iTunes media
player, the Safari web browser, the Shazam acoustic fingerprint utility, and
the iLife and iWork creativity and productivity suites, as well as professional
applications like Final Cut Pro, Logic Pro, and Xcode. Its online services include
the iTunes Store, the iOS App Store, Mac App Store, Apple Music, Apple TV+, iMessage,
and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple
Pay, Apple Pay Cash, and Apple Card.
Apple is well known for its size and revenues. Its worldwide annual revenue totaled
$265 billion for the 2018 fiscal year. Apple is the world's largest technology
company by revenue and one of the world's most valuable companies. It is also the
world's third-largest mobile phone manufacturer after Samsung and Huawei. In August
2018, Apple became the first public U.S. company to be valued at over $1 trillion. The
company employs 123,000 full-time employees and maintains 504 retail stores in 24
countries as of 2018. It operates the iTunes Store, which is the world's largest music
retailer. As of January 2018, more than 1.3 billion Apple products are actively in use
worldwide. The company also has a high level of brand loyalty and is ranked as the
world's most valuable brand. However, Apple receives significant criticism regarding
the labor practices of its contractors, its environmental practices and unethical
business practices, including anti-competitive behavior, as well as the origins of source
materials.

One Plus Technology (Shenzhen) Co., Ltd., commonly referred to as OnePlus, is a

Chinese smartphone manufacturer, which is based in Shenzhen, Guangdong. It was
founded by Pete Lau (CEO) and Carl Pei in December 2013. The company officially
serves 34 countries and regions around the world as of July 2018.[2] They have
released numerous phones, amongst other products. It is currently majority owned by
Oppo as its only shareholder, which is a subsidiary of BBK Electronics along
with Oppo, Realme and Vivo. However, both OnePlus and Oppo denies OnePlus is a
subsidiary and maintain they are independent companies, although OnePlus confirmed
it uses Oppo’s manufacturing line and shares part of the supply chain resources with
Oppo

OnePlus is also known for its very distinctive slogan: "Never Settle", included in some
of their wallpapers, and is a very big role in the company.
The company unveiled its first device, the OnePlus One, on 23 April 2014 which was
intended to capture market from the Google Nexus series.[9] In December 2014,
alongside the release of the OnePlus One in India exclusively through Amazon, OnePlus
also announced plans to establish a presence in the country, with plans to open 25
official walk-in service centres across India.

The company unveiled its first device, the OnePlus One, on 23 April 2014 which was
intended to capture market from the Google Nexus series.[9] In December 2014,
alongside the release of the OnePlus One in India exclusively through Amazon, OnePlus
also announced plans to establish a presence in the country, with plans to open 25
official walk-in service centres across India.
Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next
three decades, the group diversified into areas including food processing, textiles,
insurance, securities, and retail. Samsung entered the electronics industry in the late
1960s and the construction and shipbuilding industries in the mid-1970s; these areas
would drive its subsequent growth. Following Lee's death in 1987, Samsung was
separated into four business groups – Samsung Group, Shinsegae Group, CJ
Group and Hansol Group. Since 1990, Samsung has increasingly globalised its activities
and electronics; in particular, its mobile phones and semiconductors have become its
most important source of income. As of 2017, Samsung has the 6th highest
global brand value.
Samsung is a major manufacturer of electronic components such as lithium-ion
batteries, semiconductors, chips, image sensors, camera modules and flash
memory devices for clients such as Apple, Sony, HTC and Nokia.[8][9] It is the world's
largest manufacturer of mobile phones and smartphones, started with the original
Samsung Solstice[10] and later, the popularity of its Samsung Galaxy line of devices.
[11] The company is also a major vendor of tablet computers, particularly its Android-
powered Samsung Galaxy Tab collection, and regarded for developing
the phablet market through the Samsung Galaxy Note family of devices.[12] It has also
developed 5G capable smartphones through the Galaxy S10 and Galaxy Note 10 and
foldable phones through the Galaxy Fold. Samsung has been the world's largest
television manufacturer since 2006,[13] and the world's largest manufacturer of
mobile phones since 2011.[14] It is also the world's largest memory chips
manufacturer.[15] In July 2017, Samsung Electronics overtook Intel as the largest
semiconductor chip maker in the world.[16] Samsung Electronics is the world's second
largest technology company by revenue.

DISTRIBUTION CHANNEL:

Manufacturing
Unit
 Franchised
Distributord Samsung’s
Big RetailerDistribution Channel
Retail Chain
Outlets

 Good’s are manufactured and dispatched to C&F Agents on

consignment basis Small Retailers/
Dealers
Digital plaza

 Then the good’s are dispatched to distributers, retailers, retail chains

and franchised stores as per the order placed by them to the company
Digital Homes

Digital Worlds
APPLE:

Manufacturing
Unit

Direct Sales Third Party

Online Store Retail Store
Force wholsaler

Final Customer Final Customer Retailer Retailer

Final Customer Final Customer

Apple’s Distribution Channel

OnePlus:

Manufacturing
Unit

Oneplus Retail
Online Selling
outlets

Final Customer

Distribution Chnnel of OnePlus

Smart phone market share in India

The number of smartphone users in India, the second most populous country
in the world, is on the rise. In 2015, there were about 239 million smartphone
users in the country. This figure is forecast to jump to nearly 382 million by
2018. By 2021 the share of the population in India that use a smartphone is
predicted to rise to 33.3 percent. This growth can also be observed in the
volume of smartphone shipments in India. The number of smartphone
shipments in India increased from 3.53 million units in the second quarter of
2012 to 27.5 million units in the second quarter of 2016. Projections are
optimistic for the coming years, as India is forecast to account for about 12.5
percent of the global smartphone market by 2020.

South Korean giant Samsung, a leader in the global smartphone market, has

been the top smartphone vendor in India since early 2013, when the
company held about 30 percent of the market share. As of the fourth quarter
of 2016, Samsung accounted for about a quarter of the smartphone market
in India. Xiaomi, is the second largest smartphone vendor in the country, with
10.7 percent share.

Smartphone market share in India

Other
10%
Iphone
23%

Samsung
34%

OnePlus
33%

Iphone OnePlus Samsung Other

In 2018,Samsung record the highest market share in india.The lauch of samsung galaxy S8 boost the
sales of samsung and become the highest selling smart phone in 2018.
 Smartphone Indian Market share
50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
2018 Q3 2018 Q4 Q1 Q2 Q3 Q4

Samsung Apple Oneplus

Now one plus is the only mobile phone which is growing at a very fast growth
rate.with in a period of 5 year,one plus become the No. 1 smart phone in
india.From Q3 of 2018 to Q4 of 2019market share of one plus grow from
30% to 38%,the market share of samsung decline from 27% to 20% and the
market share of apple grow from 23% to 30%
We can conclude from that is the
market share of one plus is having growth of 26.66%,there is decline in share
of samsung by 35% and the is is growth in market share of apple by 30.43%
 QUESTIONNAIRES
1.NAME:

2.GENDER
MALE
FEMALE

3.Age

below 18
18-30
30-60
above 60

Age group

10%
20% Below 18
18-30
30-60
28% Above 60

43%
4.DO you have smart phone
YES
NO

5.How long you are using smart phone?

6..Which brand do you recommend

Apple
Samsung
OnePlus
Others

Brands prrference

15%
Apple
30% Samsung
One plus
others
28%

28%
 7.How often do you change your Cell
6 Months
1 Year
2 Year
More than 2 years

Change of mobile phone

6 month 1 year 2 year more than 2 year

8.On the scale of 1 - 10 rate the following

Apple
samsung
Oneplus
Others
 Chart Title

One plus

Samsung

Apple

0 2 4 6 8 10 12

Satisfied Column1
9.Which operating
system do you prefer
Android
ios
Others

Operating system

Others
5%

ios
28%

Android
68%

Android ios Others

10.What's the first thing you look in a phone while making pu rchase decision

11.How among the following influences your purchase decision?

 1 2 3 4 5
Advertisement

Features

Quality

Price

Brand image

Service

Recommendation

Feasibility

Usage

Others

Series 1
4.8 4.9
4.6 4.6
4.3
4.1
3.8
3.6
3.4
3.2

Series 1
 Conclusion
This project deals with the study to understand consumer preference on
mobile phones.Why consumer prefer different brands.In this
dissertation,we compare 3 mobile companies i.e Apple,Samsung and One
plus.we also understand the trend of mobile phones in market and compare
their market share with each other.We also able to know the success
behind companies.Why people prefer their mobile phone.
The question is why one plus is able to compete with this competitive
market?because one plus launch their 1st mobile with a price very lower
than other premium smart phones.And gradually,it increases their price but
the demand of oneplus never gone down because of their quality and
innovation.The sales of Samsung is quite less than one plus bus in Q1 of
2019,the market shares of Samsung goes up because of launch of
Samsung Galaxy S10 and reviving of A series.Apple iphone maintaining
their market share by making innovation in their product and takes a good
market share in premium smart phones.
At last ,trends keeps on changing and one who give better quality and do
innovation grab the market.And consumer is the only king in the
market.Consumer can make company or break company.So,companies
makes strategy to satisfy consumer only