Data

Indian OEM VAS revenue reaches Rs 25 cr, Micromax leads

In FY13-14 it contributed 2% of the total revenue, expected to touch 7% in FY14-15

oem-vas-revenueHomegrown handset maker Micromax leads the OEM vas space with Rs 14.8 crore followed by Karbonn with Rs 4.1 crore during the just concluded fiscal year. For the fiscal ended 31 March 2014, the Indian OEM VAS revenue touched Rs 25 crore.

TeleAnalysis did a survey on the top 10 Indian handset makers to find out how much revenue they earn from their non-core business – from not selling handsets. We tracked top Indian handset companies including Micromax, Karbonn, Celkon Mobiles, Lava, Xolo, Intex and Spice Mobiles.

What we mean by non core business is the business besides selling their handsets. Handset players, be Indian players like Micromax or Karbonn or global players like Nokia and Samsung earn a significant amount of revenue from offering value added services. Though overall the revenue from VAS is negligible compared to their overall revenue, it has seen a huge and consistent growth in the last couple of years.

For a handset player VAS revenue comes from 3 sources. First, from pre-installing VAS apps like Facebook, Twitter or True caller etc; second, from WAP portals and IVR systems; and third, from game embedding on handsets.

These days, as data has become the new voice, more and more handset players are selling their handsets with pre-installed applications like Facebook, Twitter, Whatsapp, LinkedIn, TrueCaller and many more. These App players pay a certain amount of money as ‘pre-installation’ amount to the handset players, though the amount varies for different handset players. The more popular and more selling handset player gets more compared to the lesser ones. But on an average the app players pay around Rs 20 per installation per each handset.

Second source of revenue for the handset players comes from WAP portals and IVR services. The major chunk of revenue of OEM VAS comes from this business model.

The third source is from the pre-embedded games on the devices. Games have always been a big draw for consumers, and it has become more prominent in the last 4 to 5 years. Popular games like Angry Birds and Temple Run etc are big draw for users across age.

From our survey we found out that in VAS revenue Micromax ended the fiscal year 2013-14 with Rs 14.8 crore, Karbonn with Rs 4.1 crore, Celkon Mobiles with Rs 2.2 crore, Lava with Rs 1.85 crore, Xolo with Rs 0.72 crore, Intex with Rs 0.42 crore and Spice Mobiles with Rs 0.18 crore.

Indian OEM VAS Revenue FY13-14
Company Revenue (Crore)
Micromax 14.8
Karbonn 4.1
Celkon 2.2
Lava 1.85
Xolo 0.72
Intex 0.42
Spice 0.18
Others 0.73

 

 

 

 

 

 

 

The overall VAS revenue for handset players contributes around 2% of their total revenue. The survey also predicted that this revenue would grow upto 7% in this current fiscal.

 

Disclaimer: This is an independent survey by TeleAnalysis. The  revenue figure is for FY13-14.  It does not include the revenue figures of global players like Samsung, Nokia, BlackBerry etc. TeleAnalysis

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