INDIAN SMARTPHONE INDUSTRY: PORTER’S FIVE FORCE ANALYSIS

Hi Reader, Hope You are doing well. In this article, I would like to present you the structural forces driving the Indian Smartphone Industry. Five Force Analysis 1. The threat of new entrants : The threat of new entrants is on the lower side , as sunk costs, patents and licenses required, economies of scale and exit costs are on the higher side. 1.1 Sunk Costs: High 1.1.1 Costs associated with R&D, Promotions, setting up of production facilities are some of the major sunk costs in the smartphone industry 1.1.2 Huawei, Apple and Samsung have spent $9.2B, $8.1B and $12B on R&D in 2015 respectively 1.2 Patents & Licenses: High 1.2.1  A single smartphone can involve thousands of patents. These can be w.r.t display, chipset, batteries, features, design, software etc. For instance, Samsung filed a patent for foldable and bendable displays this year 1.2.2 Huawei Technologies filed  3898 patents in 2015 alone, while Samsung filed 1683 1.3 E...