Customers' Perception and Comparative Analysis of I-Phone With Its Major Competitors in India

Customers’ Perception and Comparative
Analysis of i-phone with its major

competitors in India
Project submitted to Asia-Pacific Institute of Management, New

Delhi as a partial completion towards Post-graduate Diploma in
Management
Project Guide Submitted by

Ms Piyali Halder Kunal Anand
Asia-Pacific Institute of Management

Plot No. 3 & 4, Institutional Area, Jasola, New Delhi-110025
Asia Pacific Institute of Management
Acknowledgement
I would like to acknowledge and extend my heartfelt gratitude to the following persons who
have made the completion of the project possible:
Our Director Dr. D.K. Banerjee for his vital encouragement and support.
Ms. Piyali Halder my Project Guide for helping me to select the topic of the project and
constantly guiding me during all the phases of the project and correcting me whenever I wrong
in the project work.
Ms. Ritu Anand my subject faculty for giving me all necessary information and
encouragement about the subject matter.
Mr. Soumitra Das, General Manager, Oracle India Pvt. Ltd. and Mr. Syed Ali Regional
manager, Oracle India Pvt. Ltd. for sparing their valuable time providing me all necessary
information from their organization.
Most especially my friends and class mates who helped me in collecting the necessary data
from various sources.
Kunal Anand
Roll No. 2k71a04
Date :10/01/2009
1
DECLARATION
I hereby declare that the project entitled “Customers’ Perception and
Comparative Analysis of i-phone with its major competitors in India”
submitted by me in partial fulfillment towards the requirement of the award of
PGDM (full time), is my original work and the project has not been previously
used for the award of any degree, associate -ship, fellowship or any other similar
titles.
Kunal Anand
Place: New Delhi
Date: 10/01/2009
2
CERTIFICATE
This is to certify that the project entitled “Customers’ Perception and
Comparative Analysis of i-phone with its major competitors in India ” is the
bonafide work carried out by Kunal Anand student of PGDM (full time), Asia
Pacific Institute of Management, Delhi, during the year 08-09, in partial
fulfillment of the requirements for the award of the PGDM, and that the project
has not formed the basis for the award previously of any degree, diploma,
associateship, fellowship or any other similar title.
Signature of the Guide:
Place: New Delhi
Date: 10/09/2009
3
Content
S.No. Chapter Page No.
1. Introduction 05
2. Review of Literature 13
3. Objective of the study 15
4. Methodology 16
i. Type of sampling 17
ii. Measurement and Scaling 17
iii. Sampling Data 18
iv. Data analysis techniques 18
v. Limitation of the study 18
5. Analysis 19
i. Factor analysis 30
ii. Comparative Analysis 41
6. Conclusion 43
7. Executive Summary 45
8. Bibliography 47
9. Annexure 48
i. Questionnaire 48
ii. Important data 52
4
Introduction
Mobile users today want their handsets to be converged devices handling multiple functions,
entertainment being the most important among them. They want their mobile to be fully loaded
with top-end features, but they want all that at affordable costs.
Integrated digital camera, music player and stereo FM radio are the three main features which
would drive users towards upgrading their handsets. These features are available in mid range
and high-end handsets so far, and the common user now demands these features in ordinary
handsets which can be affordable. On the other hand, MMS has failed to catch the fancy of the
masses due to its high costs of transmission over the networks and relatively cheaper alternate
modes of downloading videos available through Internet.
Other features like Games, Calculator, Reminders/Scheduler/Organizer, Polyphonic ringtones etc
have become hygiene features and are a must for any handset. None of these features is a
differentiator anymore. Apart from Integrated Camera, Music player and Stereo FM radio, a
Speaker phone is another feature that emerges as the driver for replacing the current handset.
This feature can be a most cost effective differentiating feature for the low end phones.
Most handset vendors have been bringing out new models at fairly regular intervals. The
maximum activity takes place at the high end, where the launch of a newer model makes the
older model cheaper, shifting it to the mid segment. The handset vendors need to address these
expectations of the mass market to be able to entice them towards their products.
5
3G is the Third Generation of mobile phone standards and technology, superseding 2.5G. It is
based on the International Telecommunication Union (ITU) family of standards under the IMT-
2000.
3G networks enable network operators to offer users a wider range of more advanced services
while achieving greater network capacity through improved spectral efficiency. Services include
wide-area wireless voice telephony, video calls, and broadband wireless data, all in a mobile
environment. Additional features also include HSPA data transmission capabilities able to
deliver speeds up to 14.4Mbit/s on the downlink and 5.8Mbit/s on the uplink.
Unlike IEEE 802.11 (common names Wi-Fi or WLAN) networks, 3G networks are wide area
cellular telephone networks which evolved to incorporate high-speed internet access and video
telephony. IEEE 802.11 networks are short range, high-bandwidth networks primarily developed
for data.
3G technologies enable network operators to offer users a wider range of more advanced services
while achieving greater network capacity through improved spectral efficiency.
6
Apple i-Phone
This was the most awaited phone in the Indian market. It is now here, but not before it became
famous throughout the rest of the world. Renowned for its chic design and easy-to-use functions
the iPhone has tremendous features such as its wide and clear screen, iPod, internet capability
with classic web browser, GPS mapping, and last but not lease, a phone.
Apple iPhone is being offered in the USA for the price of $199, so the awaiting buyers in India
expected the same price. Unfortunately, that is not what happened. To grab hold of this hot item,
you will have to shell out Rs.31,000 for the 8GB and Rs. 36,100 for the 16GB. If you want to
pick up more than one, you may consider flying overseas to make your purchase. Even with
airfare included, you may just save a few rupees!
7
HTC Diamond Touch

This is the most talked about phone among the corporate and business people of India. Loaded
with tons of great features, it is one of the slimmest phones in the touch category. It boasts of the
most famous business platform out there Windows Mobile. This slim trim companion comes
with Windows Mobile 6.1 Professional, it weighs a mere 110 g (with the battery), it is GPS
enabled, has a 2.8-inch touch screen, 4GB internal usage, and will even tell you the weather
reports with HTC Weather. No, an umbrella is not included. So if you are not mobile savvy but
care about the Windows Mobile Platform and the business related apps then go for HTC
Diamond Touch. This one truly is a diamond in the rough!
8
NOKIA N96
Finally it’s time to talk about one of the most famous brands on the planet, Nokia. Nokia N96 is
great improvement on the already excellent N95. People are no longer calling it a mobile but
rather, a new multimedia computer as it has virtually everything a computer should have.
Easily accessing internet videos is a highlight of this sophisticated phone. In select markets, the
integrated DVB-H receiver offers live broadcast TV with an automatically updating program
guide. It also boasts of a 5 megapixel camera, GPS, Bluetooth wireless technology, WLAN, and
a DVB-H Receiver.
9
BlackBerry Storm 9500

The highly anticipated BlackBerry Storm 9500 today made its first official appearance, popping
up on German Vodafone web site. Images and specs of the first touchscreen RIM-manufactured
device have been floating around the net for what seems like ages but it hasn’t yet been officially
announced. If all the rumored features are confirmed when the device actually sees daylight then
the Apple iPhone 3G might be up for quite a challenge.
The specifications of the BlackBerry Storm 9500 that are already known include a 3.3”
touchscreen with a resolution of 360 x 480 pixels. The tri-band 3G with HSDPA and the quad-
band GSM support makes it capable of global roaming. The Storm 9500 is running on a 624
MHz CPU and has 192 MB of RAM and utilizes a new version of the BlackBerry OS, optimized
for touchscreen input.
10
Samsung i8510 INNOV8
It is an imaging powerhouse, with its 8 megapixel autofocus camera that offers image
stabilization and blink, smile, and face detection, for perfect photos. The camera also features the
ability to take panoramic photographs, and uses the handset's built-in GPS receiver to geotag
photos with location information. The i8510 INNOV8 is capable of recording QVGA video at up
to 120 frames per second and VGA-resolution video at up to 30 frames per second, with a full
video editing suite on board.
Music is not forgotten on this workhorse, with a built-in FM radio, 3D surround sound, and a
standard 3.5mm audio port. The i8510 INNOV8 offers 16GB of built-in memory in addition to a
microSD card slot for even more storage options. Bluetooth 2.0 with A2DP support for stereo
headsets makes wireless music possible also.
11
Sony Ericsson XPERIA X1
This phone is based on the Windows Mobile 6.1 Operating System which means it has a full
suite of applications to offer to the user. The Sony Ericsson Xperia X1 is promoted by the
company as offering a convergence of communication features and entertainment features; this
convergence is exactly what people are seeking from a smart-phone in today’s highly mobile
world and allows this new lineup of phones to compete in the global marketplace.
What is really impressive about the Sony Ericsson Xperia X1 is the fact that this phone excels in
so many different areas. Some phones really do well only as a niche phone but very few phones
really meet all of the diverse needs of a single user. The Sony Ericsson Xperia X1 manages to
achieve this rarely-met goal. It has great Internet and communication services as well as a
plethora of entertainment options. It has a built-in camera and other great standard features
expected of today’s advanced phones. And it really stands out in the area of design. Combined
together, these features make this mobile phone a truly well-rounded cutting-edge phone
intended for the smart-phone fan who wants to have it all.
12
Review of Literature
There are many articles being published about iPhone being launched in India. The iPhone is
being compared with the handsets from other manufactures like Nokia, Samsung, Sony Ericsson
etc. One of the articles which came in August edition of Digit Magazine titled as A Taste of
What’s To Come by Mr. Michael Brown, has compared iPhone with Nokia’s N96 and Sony
Ericsson XPERIA X1.In this article Mr. Brown has compared different attributes of iPhone with
its major competitors. Also according to an article came on 19 Aug, 2008 in Economic Times
titled Nokia intercepts iPhone with high-end handset, states that the major rivals of iPhone are
coming up with the superior products to outsmart the iPhone. There are certain loopholes in
iPhone such as lack of massage forwarding facility, 2 Mega pixel camera with no video
recording, Bluetooth can be used only for handsfree, No Cut Copy Paste option, and can only be
used with specified operator. With the latest technology, great features and state in art design, the
competitors are ready to give iPhone the run for their money.
As reported by TRAI, the mobile telephony sector has almost touched a subscriber base of 43
million marks (GSM 33.6 million & CDMA 9.4 million) at the end of quarter ending 30th
September 2006. The mobile subscribers’ base stood at almost 43 million as against 37.8 million
for the quarter ending 30th June 2006, adding around 5.24 million subscribers in one quarter.
Riding on a wave of increasing growth, mobile telephony in India is expected to rise to a
consumer base of over 120 million by 2008, making the telecommunication sector one of the
most lucrative markets for global mobile phone manufacturers & cell phone providers.
13
Consumers’ Satisfaction Analysis by TRAI
The study assesses the satisfaction level of consumers encompassing quality of technical service,
quality and operational aspects of gadgets; and social / psychological costs due to unsolicited
promotional calls/SMSs etc. The analysis in this report throws light on the consumption behavior
of the mobile phone users in Delhi and covers the aspects like usage pattern of the mobile phone
services, assessment of the level of satisfaction, preference for various attributes and
functionalities of gadgets etc.
Apart from this I also referred literature about consumer purchasing decision in high
involvement product like mobile phones. This provided me knowledge about how information
search takes place in this category and what are the important attributes that customer look for
while buying such a product.
14
Objective
The objective of the project is to explore the perception of the customer towards i-phone and its
major competitors HTC Diamond, Samsung F490, Sony Xperia x1, Black berry thunder, and
Nokia N75 and to do a comparative study of these mobile handsets in India.
 In the first part of my objective, I will try to find out the customer perception towards the
3G phones and will try to find the important features which the customer prefers over all
the other features available in the handset. and, regarding features, brand, range etc.
 Second part of the study will be focused on the comparative study of i-phone and its major
competitors HTC Diamond, Samsung F490, Sony Xperia x1, Black berry thunder, and
Nokia N75. This analysis will be done on the basis of the features which customer prefers
more.
Need for the study

Recently Apple launched i-phone and expectations of people with i-phone were very high. Even
mobile phone manufacturers in India were ready with their counter attack.
This research is being conducted as to know whether the expectations are being fulfilled or not
on the customer end and also to know whether its competitors are able to neutralize the effect of
i-phone by their newly launched mobile handsets.
15
Methodology
There are nearly 120 million consumers of mobile handsets making the telecommunication
sector one of the most lucrative markets for global mobile phone manufacturers & cell phone
providers. For this research I have taken a random sample of 100 mobile phone users in Different
parts of India.
The methodology to conduct the study was composed of different tasks as follows:
1. Review of literature: A review of literature on consumer satisfaction in telecom industry
was undertaken in order to define the comprehensive scope of the study and ensuring its
objectivity.
2. In- Depth interviews: IDIs were conducted across 10 people. 4 of these were students
from the AIM campus and 6 were executives from different companies. The purpose of these
interviews was to understand the user of 3G mobile phone, to know their buying process for
these phones, to understand the attributes important for the phones and to know what the
users considered as an important.
3. Questionnaire: The inputs from the above two helped us in the questionnaire formation.
Important attributes were identified and incorporated. Also, the research objectives helped us
identify the nature of questions we needed to ask.
16
Empirical Research - Sampling
A survey of 100 sampled respondents was conducted online as well as offline. There were 80
online responses while the remaining respondents were contacted offline. These online and
offline surveys were conducted between 10th October 2008 and 5th November 2008.
Information Needed
 Market share and relative positioning of different brands
 Opinions about attributes of ideal mobile phone
 Satisfaction level of mobile users
 Most important drivers of buying
 Barriers to switching from a one range to other
 Triggers that lead to a need for replacing existing phone
Measurement and Scaling
 Ordinal Scale: The product categories are being ranked in terms of the consumer
preferences
 Likert Scale: The companies are being rated according to different categories and the
categories are rated according to different attributes on a scale of 1-5.
 Sampling Plan: We intend to carry out our survey on a population which would
comprise of customer from all age group.
17
Sampling Data
1. Target Population: Men and women all the age group.
2. Sampling frame: High End Customer from all over India
3. Sampling Technique: Convenience sampling.
4. Sample Size: 100
Data analysis techniques
After collecting data from the primary and the secondary sources it has been being analyzed by
the various function of SPSS (Statistical Package for Social Sciences), such as
 Descriptive Statistics, and
 Data Reduction Techniques like Factor Analysis.
Limitations of the study
 Out of the 120 million users of mobile phones, only a sample of 100 mobile phones
users where taken for the study, so result of the study may vary from the actual.
 Since questionnaire where used for collecting the primary data, so there are chances
that the given data may vary from the actual, which can lead to wrong results.
 Due to the limitation of time, there were some of the factors, which were not
considered in the study.
18
Analysis
Different company’s mobile handset which people generally use.
Cumulative
Frequency Percent Valid Percent Percent
Valid Nokia 27 27.0 27.0 27.0
Sony Ericsson 19 19.0 19.0 46.0
Samsung 15 15.0 15.0 61.0
HTC 9 9.0 9.0 70.0
Blackberry 13 13.0 13.0 83.0
Motorola 7 7.0 7.0 90.0
Others 10 10.0 10.0 100.0
Total 100 100.0 100.0
Interpretation: This question was asked to determine the mobile company whose handsets are
mainly used by the high level officers and the executives, and the result showed that nearly 27%
uses Nokia handsets, with 19%, 15%and 13% uses Sony Ericsson, Samsung and Blackberry
respectively.
19
Time from which mobile users have been using their mobile handset.
Cumulative
Valid Less than 1 year 39 39.0 39.0 39.0
1 - 2 years 34 34.0 34.0 73.0
2 - 3 years 23 23.0 23.0 96.0
More than 3 years 4 4.0 4.0 100.0
Total 100 100.0 100.0
Interpretation: This question was asked to the different users of mobile phones to know from
how long they have been using their handsets. In this era of hyper competitions and changing
technology, a user using a mobile phone from more than a year, may think of changing it or
upgrading it to a new one. The result of this question showed that nearly 39% users where using
their handset from less than a year and rest 61% of them where using their handset from more
than a year.
20
The performance of various mobile handsets according to their users.
Cumulative
Valid Very Poor 4 4.0 4.0 4.0
Poor 12 12.0 12.0 16.0
Average 36 36.0 36.0 52.0
Good 32 32.0 32.0 84.0
Very Good 16 16.0 16.0 100.0
Total 100 100.0 100.0
Interpretation: This question was asked to the customers as to know whether or not they are
happy with the performance of their mobile handsets, as the users who are not happy with the
performance of their handset may go for a new handset and the result showed that nearly 48%
people where happy with the performance, but the rest 52% where either unhappy or where just
satisfied with the performance of their handsets. Thus we can say that the users may switch to a
new phone if they find some attractive features in the new handset.
21
Awareness about the availability of 3G mobile handsets in India.
Cumulative
Valid Yes 97 97.0 97.0 97.0
No 3 3.0 3.0 100.0
Total 100 100.0 100.0
Interpretation: The answer to this question which I was expecting was all the users saying yes
to it, but the result showed that still nearly 3% of the executives where unaware of availability
of 3G handsets in India, and this shows that the manufacturers of the 3G handsets need to
advertise about the features of their handsets, specially the advantages of using a 3G handset
over a 2G handset.
22
Are the mobile users having any plans of changing their mobile handset to a
new 3G mobile handset?
Cumulative
Valid Yes 44 44.0 44.0 44.0
No 56 56.0 56.0 100.0
Total 100 100.0 100.0
Interpretation: The answer to this question will tell us whether the mobile users are ready to
buy the new 3G handsets that are available in the market, and the results showed that nearly
44% of the mobile users where thinking to change their handsets. It is a good number of users
who where ready to go for buying a new handset. The users who are telling no to this question
i.e. nearly 56% may be already a 3G handset user or it can also be possible that he would have
recently purchased a new handset.
23
The 3G handset which mobile phone users would you like to go for.
Cumulative
Valid Nokia 15 15.0 15.0 15.0
Sony
24 24.0 24.0 39.0
Ericsson
Samsung 8 8.0 8.0 47.0
HTC 12 12.0 12.0 59.0
Blackberry 20 20.0 20.0 79.0
Apple 21 21.0 21.0 100.0
Total 100 100.0 100.0
Interpretation: This question was asked to know that if the mobile phone users think of going
for a new 3G handset then which are the mobile handset they want to go for. The result shows
that nearly 24% of the customer would like to go Sony Ericsson, 21% would like to buy the
Apple i-phone, 20% would like to go for Blackberry, and rest 35% can go for either Nokia, HTC
or Samsung. This also shows that the users are very much aware of the quality of the handsets
provided by Sony Ericsson, Apple and Blackberry. The other companies need to rework their
strategy as to make consumers aware about their offering.
24
The budget of various mobile phones users for a new 3G mobile handset.
Cumulative
Valid Less than Rs. 20,000 16 16.0 16.0 16.0
Rs. 20,000 - Rs. 30,000 12 12.0 12.0 28.0
Rs. 30,000 - Rs. 40,000 40 40.0 40.0 68.0
Rs. 40,000 - Rs. 50,000 24 24.0 24.0 92.0
More than Rs. 50,000 8 8.0 8.0 100.0
Total 100 100.0 100.0
Interpretation: From this question we can interpret that how much a mobile phone user is
ready to invest on purchasing a new handset. The result shows that on maximum number of users
are ready to invest in between 30k to 40k. Even 24% of users are ready to invest in between 40k
to 50k. This gives the mobile handset manufacturers a hint that the customers are ready to give
money for a premium quality product.
25
The main driver behind the selection of a new 3G handsets.
Cumulative
Valid Current handset is outdated 25 25.0 25.0 25.0
Poor battery life 35 35.0 35.0 60.0
Lack of storage memory 24 24.0 24.0 84.0
Just for a change 16 16.0 16.0 100.0
Total 100 100.0 100.0
Interpretation: This question was asked to explore the reason why mobile phone users are ready
to upgrade their handsets and the reason which I found was that nearly 35% of the users where
unhappy with the battery backup of their mobile handset and thus wanted to change it. The other
reasons where that 25% users where thinking that their handset was outdated, 24% think that
didn’t had enough memory space and 16% just wanted to change their handsets. Thus the
manufacturers should be making their handsets with a good battery backup and with large
storage memory.
26
Type of Screens which mobile users would like to prefer.
Cumulative
Valid Regular 40 40.0 40.0 40.0
Touch Screen 20 20.0 20.0 60.0
Doesn’t matter 40 40.0 40.0 100.0
Total 100 100.0 100.0
Interpretation: Many people prefer a Regular screen in their handset, some prefer to have a
delicate touch screen and for some user it doesn’t matter much. This question was asked to know
the preference of the users in term of the type of screen they want and the result shows that 40%
want to have a regular screen, 20% prefers touch screen and or rest 40% it doesn’t matter much of
their concern. The reason for mobile phone users to prefer the regular screen over touch may be
the delicateness of the touch screen.
27
How the mobile users came to about the existence of 3G mobile handsets.
Cumulative
Valid The Internet 29 29.0 29.0 29.0
Promotional Emails 27 27.0 27.0 56.0
Marketing Events 28 28.0 28.0 84.0
Sales Campaign 16 16.0 16.0 100.0
Total 100 100.0 100.0
Interpretation: The reason behind asking this question is to know about the most effective way
for creating awareness of the availability of 3G handsets. And the analysis shows that the most
effective way of creating awareness is through the internet followed with the marketing events
that are organized by various handset manufacturers to promote their product, and also the
promotional Emails sent by these companies to different users of the mobile phones.
28
How much the attributes below affects the decision of choosing a particular
mobile Handset
Interpretation: This question was asked to know how the various attributes of a mobile phone
affects the decision of the customer for choosing a particular mobile handset. Just looking at
this graph we can say that the factors like Synchronization with Computer, Battery Life (Talk
Time & Standby), Camera Resolution. Availability of Bluetooth, Screen Resolution, Touch
Screen, and Overall Look pays a very important role. Further factor analysis and reliability test
has been performed to confirm percentage by which these factors affects the decision of the
customer.
29
Factor Analysis
Initial Extraction Among the various factors

Rate the attributes that affect your decision for
choosing a particular handset - Signal Reception & listed in the questionnaire such
Voice Clarity 0.792 0.262
choosing a particular handset - Storage Memory 0.824 0.598 as Signal Reception & Voice
choosing a particular handset - USB Compatibility 0.807 0.733 Clarity, Storage Memory, USB
choosing a particular handset - Synchronization Compatibility, Synchronization
with computer 0.82 0.866
choosing a particular handset - Browsers (GPRS, with Computer, Browsers
HSCSD, EDGE) 0.86 0.453
Rate the attributes that affect your decision for (GPRS,HSCSD,EDGE,),
choosing a particular handset - Keypad Type
(Regular, QWERTY) 0.609 0.524 Keypad Type (Regular,
choosing a particular handset - Battery Life 0.905 0.651
Rate the attributes that affect your decision for QWERTY), Camera
choosing a particular handset - Camera Resolution 0.824 0.687
Rate the attributes that affect your decision for Resolution, Battery Life(Talk
choosing a particular handset - MP3 player 0.745 0.672
Rate the attributes that affect your decision for Time & Standby), MP3 Player,
choosing a particular handset - Availability of
Bluetooth 0.856 0.734
Rate the attributes that affect your decision for Availability of Bluetooth,
choosing a particular handset - Screen Resolution 0.845 0.712
Rate the attributes that affect your decision for Screen Resolution, Price,
choosing a particular handset - Touch Screen 0.855 0.923
Rate the attributes that affect your decision for Overall Look. I have tried to
choosing a particular handset - Price 0.838 0.866
choosing a particular handset - Overall look 0.778 0.867
take out some of the important
Gender 0.857 0.738
Occupation 0.826 0.568 factors that affect a mobile
Age 0.895 0.904
handset buyer and also the
amount by which these factors affect their decision.
Table Above is showing the Initial and Extraction Communalities. The Extraction
Communalities for a variable gives the total amount of variance in that variable. In our case
30
97.9% of variance in Expenditure is explained by the extracted factors. And 94.5% of variance
in Overall Cost Reduction is explained by the extracted factors.
Table B is used to take out the number of factors, and this is done by selecting the factors with
Eigen Value greater than or nearly equal 1. Thus in our case there are Six (6) Factors. And we
also conclude that the Six factors extracted explain nearly 69% of the variance.
31
The Scree Plot is a plot between the Eigen Values and the factor numbers. As from the graph
we can conclude that there are only Four Factors above the level at which Eigen value is 1.
32
Factor Matrix
Table C1
33
Rotated Factor Matrix
Table C2
34
Table C1 and C2 helps in grouping the various factors under the four factors. The grouping is
as follows:
Factor 1: Synchronization with Computer
Battery Life (Talk Time & Standby)
Camera Resolution
Occupation
Factor 2: Availability of Bluetooth
Screen Resolution
Touch Screen
Overall Look
Factor 3: Storage Memory
Price
Factor 4: MP3 Player
Gender
Factor 5: USB Compatibility
Browsers (GPRS, HSCSD, EDGE,)
Factor 6: Signal Reception & Voice Clarity
Keypad Type (Regular, QWERTY)
In the factor analysis, I found four factors. Now it is premature to claim that the underlying
items of these factors make up the scale for measuring these factors. So for this I will measure
the reliability of these scales.
35
Reliability test of Factor 1:
Rel iabili ty Statistics
Cronbach's
Alpha N of Items
.804 4
Item-Total Statistics
Scale Correc ted Cronbac h's

Scale Mean if Variance if It em-Tot al Alpha if Item
It em Delet ed It em Delet ed Correlat ion Delet ed
Rat e t he attributes t hat
af f ect y our dec is ion f or
choosing a pert icular 9. 37 6. 114 .631 .748
handset - Sy nc hronization
with c omputer
8. 34 6. 469 .654 .742
choosing a pert icular
handset - Battery Lif e
choosing a pert icular 9. 76 5. 962 .713 .710
handset - Camera
Res olution
Occ upat ion 10. 06 5. 936 .513 .819
The test shows that the Cronbach’s Alpha value is 0.804, and thus I can conclude that nearly
80% of the customers believes that the four attributes i.e. Synchronization with Computer,
Battery Life (Talk Time & Standby), Camera Resolution and Occupation in factor 1, affects
their decision of the mobile handset buyers.
36
Cronbach's
Alpha N of Items
.736 4
Item-Total Statisti cs
Scale Correct ed Cronbac h's

Scale Mean if Variance if It em-Tot al Alpha if Item
It em Delet ed It em Delet ed Correlat ion Delet ed
Rat e t he attributes that
af f ect y our decis ion f or
choosing a pert ic ular 11. 55 4. 129 .688 .580
handset - Av ailabilit y of
Bluetooth
11. 61 4. 119 .711 .568
choosing a pert ic ular
handset - Touc h Screen
choosing a pert ic ular 11. 77 5. 330 .369 .758
handset - Sc reen
Res olution
11. 63 4. 842 .388 .762
choosing a pert ic ular
handset - Ov erall look
74% of the customers believe that the four attributes i.e. Availability of Bluetooth, Screen
Resolution, Touch Screen, and Overall Look of the handsets affects the decision the buyer of
new handset.
37
Cronbach's
Alpha N of Items
.781 2
78% of the customers believe that the two attributes i.e. Storage Memory and Price in
factor 3, affects their decision for making a shift to a new handset.
38
Cronbach's
Alpha N of Items
.308 2
Cronbach's
Alpha N of Items
.480 2
39
Cronbach's
Alpha N of Items
.294 2
As the cronbach’s alpha value for the Factor 4, Factor 5 and Factor 6 are less than 70%,
therefore we can conclude that these factors do not affect much to the mobile phone buyers.
40
Comparative Analysis of new launched 3G i-

phone with its major competitors in India
Parameters Apple Sony Nokia Samsung Blackberry HTC
i-phone XPERIA N96 Innov8 Strom Diamond
Synchronization
with Computer Yes Yes Yes Yes Yes Yes
Battery Life
Stand-by: 300 h 833 h 220 h 310 h 300 h 285 h
Talk time: 10 h 10 h 3h 40min 8h 30min 10 h 8h 30min
2 MP, 3.15 MP, 5 MP, 8 MP, 3.15 MP, 3.15 MP,

Camera 1600x1200 2048x1536 2592x1944 3264x2448 2048x1536 2048x1536
Resolution pixels pixels, pixels, pixels, pixels, pixels,
autofocus autofocus autofocus autofocus autofocus
Availability of Yes, v2.0, Yes, v2.0 Yes, v2.0 Yes, v2.0 Yes, v2.0 Yes, v2.0
Bluetooth headset with A2DP with A2DP with A2DP with A2DP
support only
Screen Resolution 16M colors 65K colors 16M colors 16M colors 65K colors 65K colors
320 x 480 800 x 480 240 x 320 240 x 320 360 x 480 480 x 640
pixels pixels pixels pixels pixels pixels
Touch Screen Yes Yes No No Yes Yes
Price 32,000 41,500 31,000 42,000
Storage Memory 8/16 GB 4 GB (ext 16 GB 8/16 GB 1 GB (ext 4 GB

No Card slot upto 16GB) microSD microSD upto 16GB) No Card
microSD Card slot Card slot microSD slot
Card slot Card slot
Overall Look
Table D
41
Table D shows the features of different mobile handset on the basis of the attributes which the
customer feels are more important to them. On analyzing these attributes of i-phone and its
major competitors in India. I-phone provides a good battery life, but it’s nearly half what
XPERIA from Sony is offering to its customer. It has got 2MP camera, which is the lowest
resolution in this category. It also doesn’t have the facility of video recording, autofocus etc.
Coming to the 3rd attribute i.e. Availability of Bluetooth, i-phone has Bluetooth but it can be
only be used to connect hands-free, No data transfer can take place through Bluetooth. It has a
good screen resolution has not of as good quality as offered by the Sony XPERIA and HTC
Diamond. Undoubtedly the touch feel which i-phone gives is superb. Coming on the pricing, its
pricing is not very high but the main problem is that you can’t changed your mobile service
provider for 3 years and the customer has to pay minimum billing of Rs. 3,000/Month. The
overall look has fetched i-phone 3.5 points out of 5, which is very good.
I-phone has many advantages but considering the perception of Indian customer this handset is
going to face very tough competition from well settled competitors like Nokia, Sony, Samsung,
Blackberry and HTC in India.
42
Conclusion
Riding on a wave of increasing growth, the mobile telephony in India is expected to rise to a
consumer base of over 120 million by 2008, making the telecommunication sector one of the
most lucrative markets for global mobile phone manufacturers & cell phone providers. The
mobile phone manufacturers need to be more specific about what features customer want in
their handsets. The features such as
 Synchronization with Computer
 Battery Life (Talk Time & Standby)
 Camera Resolution
 Availability of Bluetooth
 Screen Resolution
 Touch Screen
 Overall Look
 Storage Memory and
 Price
According to the research customers consider the above mentioned features above the other
features of the phone and hence the manufactures should give more stress on making these
features better.
In terms of choice, it has never been so good for the consumer. Last year saw several new
models being launched. As per rough estimates, Nokia launched 33 models; Motorola launched
18 models and Sony Ericsson 17 models. The remaining players launched close to 53 models.
43
Now even Apple has also launched its i-phone in Indian market but after analyzing the factor on
which the buying decision of Indian customer depends I can say that i-phone has to face a tough
competition to succeed in the Indian market especially due to the lack of some important
features like absence of video recording facility, autofocus, Bluetooth can’t be used for file
transfer, absence of message forwarding facility etc. and with its competitors coming up with
the phone like XPERIA, Innov8, HTC Diamond, Blackberry Strom, its really going to be a
tough time for i-phone to survive in Indian market.
44
Executive Summary
The report begins with the changing perception of mobile phone buyers. Earlier mobile was
used mainly for voice communication but as the time progressed buyers started people started
using mobile phones for messaging purpose. This time was known as the 1 st generation of
mobile phone. Time changed and the buyers where again looking for some more features in
their mobile phones and the manufactures too where busy in the their R&D to come out with
innovative features, it was the beginning of 2 nd generation of mobile phone, when mobile
phones with Camera and MP3 players were introduced. And now we are in the 3 rd generation
of mobile phone were we can send Emails, Pictures, Video etc from one phone to other.
This report mainly focuses on the 3rd generation of mobile phone, I have tried to analysis the
features which the customer gives more emphasis when he/she goes to buy the handset. The
result what I got from this research was that customer nearly 80% of the customer look for the
features like Synchronization with Computer, Battery Life (Talk Time & Standby), Camera
Resolution. Availability of Bluetooth, Screen Resolution, Touch Screen, and Overall Look
was taken into consideration by nearly 74% of the buyers, while 78% of the buyers prefer to
have a Storage Memory and competitive Price. There are other features also which is
considered by the customers but relative to the features mentioned above they are of less
importance.
In the 2nd half of the research I have tried to compare the feature of the most awaited phone in
the Indian market, iPhone from Apple with its major competitors like Sony, Nokia, Samsung,
45
Blackberry and HTC. As soon as i- phone was launched in the Indian market, its competitors
came into the market with the superior 3G phone to attract the customer. After comparing the
features of these phones on the basis of the attributes that are consider more when a buyer
goes to buy a handset and also after going through different article about i-phone, I came to
the conclusion that Apple iPhone is going to have really a tough time in Indian market, as it
lacks the features which the Indian customer are very fond of.
46
Bibliography
Magazines
 Digit
Edition: August 2008
 PC Quest
Edition: July 2008
Websites
 www.idcindia.com
 www.india-cellular.com
 www.trai.gov.in
 www.wikipedia.org
 www.gsmarena.com/htc_touch_diamond-2368.php
 www.gsmarena.com/sony_ericsson_xperia_x1-2246.php
 www.gsmarena.com/apple_iphone_3g-2424.php
 www.gsmarena.com/samsung_i8510_innov8-2471.php
 www.gsmarena.com/nokia_n96-2253.php
 www.gsmarena.com/blackberry_storm_9500-2534.php
47
Questionnaire
Objective: A research analysis to explore the perception of customer towards 3G mobile
handsets available in market.
Dear Respondent,
This questionnaire has been designed to study the factor that affects the customer’s
choice while selecting a 3G mobile handset.
I will be highly thankful to you if you could spare your valuable time to respond to the
following questions. Your views are valuable and the information disclosed will be kept
confidential and would be used only for the purpose of concerned study.
Tick () your choice
1. Do you use a Mobile Phone
a) Yes ( ) b) No ( )
2. Which company’s mobile handset do you use?

(You can choose more than one choice)
a) Nokia ()
b) Sony Ericsson ()
c) Samsung ()
d) HTC ()
e) Blackberry ()
f) Motorola ()
If any other, please list the name__________________
3. For how long you have been using your mobile handset?
a) Less than 1 year () b) 1 – 2 years ()
c) 2 – 3 years () d) More than 3 years ( )
4. Rate the performance of your mobile handset
Very poor Poor Average Good Very Good

() () () () ()
48
5. Are you aware of availability of 3G mobile handsets in India?
a) Yes ( ) b) No ( )
6. Do you have any plans of changing your mobile handset to a new 3G mobile handset
a) Yes ( ) b) No ( )
(If your answer is No, Skip Question No. 7)
7. Which of the following 3G handset would you like to go for?
a) Nokia ()
b) Sony Ericsson ()
c) Samsung ()
d) HTC ()
e) Blackberry ()
f) Motorola ()
g) Apple ()
If any other, please list the name__________________
8. What can be your budget for a 3G mobile handset
a) Less than Rs. 20,000 () b) Rs. 20,000 – Rs. 30,000 ()
c) Rs. 30,000 – Rs. 40,000 () d) Rs. 40,000 – Rs. 50,000 ()
e) More than Rs. 50,000 ()
9. What will be one of the main drivers behind the selection of a 3G handset
a) Current Handset is outdated () b) Poor Battery life ()
c) Lack of Storage Memory () d) Just For a Change ()
If any other reason, Please Mention; ______________________________
10. How will you rate the attributes below that affect your decision for Choosing a particular
mobile Handset
49
(1 for least preferred, 5 for most preferred)
a) Signal Reception & Voice Clarity (1) (2) (3) (4) (5)
b) Storage Memory (1) (2) (3) (4) (5)
c) USB Compatibility (1) (2) (3) (4) (5)
d) Synchronization with Computer (1) (2) (3) (4) (5)
e) Browsers (GPRS,HSCSD,EDGE,) (1) (2) (3) (4) (5)
f) Keypad Type (Regular, QWERTY) ( 1 ) (2) (3) (4) (5)
g) Battery Life(Talk Time & Standby) ( 1 ) (2) (3) (4) (5)
h) Camera Resolution (1) (2) (3) (4) (5)
i) MP3 Player (1) (2) (3) (4) (5)
j) Availability of Bluetooth (1) (2) (3) (4) (5)
k) Screen Resolution (1) (2) (3) (4) (5)
l) Touch Screen (1) (2) (3) (4) (5)
m) Price (1) (2) (3) (4) (5)
n) Overall Look (1) (2) (3) (4) (5)
11. Which type of Screen do you prefer?
a) Regular () b) Touch Screen ( ) c) Dual Screen ( )
12. From where did you came to about the 3G mobile handsets
a) The internet () b) Promotional Emails ( )
c) Marketing Events ( ) d) Sales Campaign ()
50
Personal Details
1. Name:___________________________
2. Gender
a) Male ( ) b) Female
3. Occupation
a) Business () b) Government Service ()
c) Professional ( ) d) Student ()
If any other, Please Specify__________________________
4. Annual Income
a) Less than 4 Lakhs () b) 4 Lakhs – 8 Lakhs ()
c) 8 Lakhs – 12 Lakhs ( ) d) More than 12 Lakhs ()
5. Age
a) Less than 20 years () b) 20 – 40 years ()
c) 40 – 60 years () d) More than 60 years ( )
6. Email Id: _________________________________
Thank You
51
Important Data
Sony Ericsson XPERIA X1

GENERAL 2G Network GSM 850 / 900 / 1800 / 1900
3G Network HSDPA 850 / 1900 / 2100
SIZE Dimensions 110.5 x 52.6 x 17 mm
Weight 145 g
DISPLAY Type TFT touchscreen, 65K colors
Size 800 x 480 pixels, 3.0 inches
- Full QWERTY keyboard
- Optical joystick navigation
RINGTONES Type Polyphonic, MP3
Customization Composer, download
Vibration Yes
MEMORY Phonebook Practically unlimited entries and fields, Photocall
Call records Practically unlimited
Card slot microSD (TransFlash)
- 400 MB internal memory
- 256MB RAM, 512MB storage memory
- Qualcomm MSM7200 528MHz processor
DATA GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbps
HSCSD No
EDGE Yes
3G HSDPA, 7.2 Mbps
WLAN Wi-Fi 802.11b/g
Bluetooth Yes, v2.0 with A2DP
Infrared port No
USB Yes, v2.0 miniUSB
FEATURES OS Microsoft Windows Mobile 6.1 Professional
Messaging SMS, MMS, Email, Push E-Mail, IM
Browser WAP 2.0/HTML (IE), RSS feeds
Games Yes + downloadable
Colors Solid Black, Steel Silver
Camera 3.15 MP, 2048x1536 pixels, autofocus,
video(VGA@30fps), flash; secondary videocall camera
- Built-in GPS receiver
- A-GPS function
- Java MIDP 2.0
- FM radio with RDS
- MP3/AAC/MPEG4 player
- 3.5 mm audio jack
- Pocket Office (Word, Excel, PowerPoint, OneNote,
PDF viewer)
52
- TrackID music recognition

- Picture editor/blogging
- Organiser
- T9
- Built-in handsfree
- Voice memo/dial
BATTERY Standard battery, Li-Po 1500 mAh (BST-41)
Stand-by Up to 833 h
Talk time Up to 10 h
53
Apple iPhone 3G
3G Network HSDPA 850 / 1900 / 2100
SIZE Dimensions 115.5 x 62.1 x 12.3 mm
Weight 133 g
DISPLAY Type Touchscreen, 16M colors
- Multi-touch input method
- Accelerometer sensor for auto-rotate
- Proximity sensor for auto turn-off
- Ambient light sensor
Customization Download
Vibration Yes
Call records 100 received, dialed and missed calls
Card slot No
- 8/16 GB shared memory
DATA GPRS Yes
HSCSD No
EDGE Yes
3G HSDPA
WLAN Wi-Fi 802.11b/g
Bluetooth Yes, v2.0, headset support only
Infrared port No
USB Yes, v2.0
FEATURES OS Mac OS X v10.4.10
Messaging SMS, Email
Browser HTML (Safari)
Games Downloadable
Colors Black(8/16 GB), White (16 GB)
Camera 2 MP, 1600x1200 pixels
- A-GPS function
- Google Maps
- iPod audio/video player
- TV output
- Photo browser/editor
- Voice memo
- Integrated handsfree
BATTERY Standard battery, Li-Ion
Talk time Up to 10 h
54
Samsung i8510 INNOV8

3G Network HSDPA 2100 / 900
Weight 140 g
DISPLAY Type TFT, 16M colors
- Optical Mouse
Vibration Yes
- Stereo speakers
MEMORY Phonebook Practically unlimited entries and fields
Card slot microSD (TransFlash), up to 8GB
- 8/16 GB internal memory
- 128 MB RAM
HSCSD No
EDGE Class 10, 236.8 kbps
3G HSDPA, 7.2 Mbps
WLAN Wi-Fi 802.11 b/g, DLNA
Infrared port No
USB Yes, v2.0, microUSB
FEATURES OS Symbian OS v9.3, Series 60 rel. 3.2
Messaging SMS, MMS, Email, Push Email, IM
Browser WAP 2.0/xHTML, HTML
Games FIFA 2008, Asphalt + downloadable, order now
Colors Black
Camera 8 MP, 3264x2448 pixels, autofocus, image stabiliser,
video(VGA@30fps, QVGA@120fps), flash; secondary
videocall camera
- A-GPS function
- Camera geo-tagging, auto-panorama shot, face, smile
and blink detection
- Business card scanner
- DivX/H.263/H.264/WMV/MP4 player
- Video editing
- MP3/eAAC+/WMA/AMR/RealAudio player
- 3.5 mm audio jack
- TV out functionality
- Java MIDP 2.0
55
- FM radio with RDS

- Organizer
- Voice memo/dial
BATTERY Standard battery, Li-Ion 1200 mAh
Talk time Up to 8 h 30 min
56
Nokia N96

SIZE Dimensions 103 x 55 x 18 mm, 92 cc
Weight 125 g
DISPLAY Type TFT, 16M colors
RINGTONES Type Polyphonic (64 channels), Monophonic, True Tones,
MP3
Vibration Yes
Call records Detailed, max 30 days
Card slot microSD (TransFlash), up to 8GB, buy memory
- 16 GB internal memory
- 128MB RAM, 256MB storage memory
- Dual ARM 9 264 MHz CPU
DATA GPRS Class 32, 107 / 64.2 kbps
HSCSD Yes
EDGE Class 32, 296 kbps; DTM Class 11, 177 kbps
3G HSDPA, 3.6 Mbps
WLAN Wi-Fi 802.11 b/g, UPnP technology
Infrared port No
USB Yes, v2.0 microUSB
FEATURES OS Symbian OS 9.3, S60 rel. 3.2
Messaging SMS, MMS, Email, Instant Messaging
Browser WAP 2.0/xHTML, HTML, RSS reader
Games Downloadable, order now
Colors Black
Camera 5 MP, 2592x1944 pixels, Carl Zeiss optics, autofocus,
video(VGA 30fps), flash; secondary VGA videocall
camera
- A-GPS function
- DVB-H TV broadcast receiver
- Dual slide design
- Java MIDP 2.0
- MP3/AAC/AAC+/eAAC+/WMA player
- 3.5 mm audio output jack
- TV out
- Stereo FM Radio with RDS
- Organizer
- Office document viewer
57
- T9
- Push to talk
- Voice dial/memo
BATTERY Standard battery, Li-Ion 950 mAh (BL-5F)
58
BlackBerry Storm 9500

3G Network HSDPA 850 / 1900 / 2100
Weight
Vibration Yes
MEMORY Phonebook Yes, Photocall
Call records Yes
Card slot microSD (TransFlash), microSDHC, up to 8 GB
- 192 MB RAM
- 1 GB storage memory
- 624 MHz CPU
HSCSD No
3G HSDPA
WLAN Wi-Fi 802.11 a/b/g
Bluetooth Yes, v2.0
Infrared port No
USB Yes, v2.0
FEATURES OS BlackBerry OS
Browser HTML
Games Yes + downloadable
Colors Black
Camera 3.15 MP, 2048x1536 pixels, autofocus, video, flash
- Built-in GPS
- A-GPS function
- BlackBerry maps
- DataViz document viewer/editor
- Java
- Media player MP3/WMA/AAC+
- Video player DivX/WMV/XviD/3gp
- Organizer
- Calculator
- Voice dial
- Voice memo
Stand-by
Talk time
59
HTC Diamond 100 platforms.
GENERAL 2G Network GSM 900 / 1800 / 1900

SIZE Dimensions 102 x 51 x 11.5 mm
Weight 110 g
- TouchFLO 3D finger swipe navigation
- Touch-sensitive navigation controls
- Handwriting recognition
RINGTONES Type Polyphonic (40 channels), MP3, WAV, WMA
Customization Download, order now
Vibration Yes
Card slot No
- 4 GB user available memory
- 192 MB DDR SDRAM, 256 MB ROM
- Qualcomm MSM7201A 528 Mhz processor
HSCSD No
3G HSDPA, 7.2 Mbps
WLAN Wi-Fi 802.11 b/g
Infrared port No
USB Yes, miniUSB
FEATURES OS Microsoft Windows Mobile 6.1 Professional
Browser WAP 2.0/xHTML, HTML
Games Yes, order now
Colors Black
Camera 3.15 MP, 2048x1536 pixels, autofocus, video;
secondary VGA videocall camera
- Built-in GPS with A-GPS
- Stereo FM radio with RDS
- Pocket Office (Word, Excel, PowerPoint, OneNote,
PDF viewer)
- Java MIDP 2.0
- Voice memo
- MP3 player
- Motion-based games
60
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Customers’ Perception and Comparative

Analysis of i-phone with its major

Project submitted to Asia-Pacific Institute of Management, New

Project Guide Submitted by

Asia-Pacific Institute of Management

I hereby declare that the project entitled “Customers’ Perception and

Comparative Analysis of i-phone with its major competitors in India”

submitted by me in partial fulfillment towards the requirement of the award of

Place: New Delhi

This is to certify that the project entitled “Customers’ Perception and

Comparative Analysis of i-phone with its major competitors in India ” is the

Pacific Institute of Management, Delhi, during the year 08-09, in partial

associateship, fellowship or any other similar title.

Signature of the Guide:

Place: New Delhi

S.No. Chapter Page No.

modes of downloading videos available through Internet.

Other features like Games, Calculator, Reminders/Scheduler/Organizer, Polyphonic ringtones etc

deliver speeds up to 14.4Mbit/s on the downlink and 5.8Mbit/s on the uplink.

while achieving greater network capacity through improved spectral efficiency.

airfare included, you may just save a few rupees!

HTC Diamond Touch

Diamond Touch. This one truly is a diamond in the rough!

BlackBerry Storm 9500

the Apple iPhone 3G might be up for quite a challenge.

for touchscreen input.

Samsung i8510 INNOV8

video editing suite on board.

headsets makes wireless music possible also.

Sony Ericsson XPERIA X1

company as offering a convergence of communication features and entertainment features; this

intended for the smart-phone fan who wants to have it all.

Riding on a wave of increasing growth, mobile telephony in India is expected to rise to a

Consumers’ Satisfaction Analysis by TRAI

functionalities of gadgets etc.

while buying such a product.

Nokia N75 and to do a comparative study of these mobile handsets in India.

Need for the study

i-phone by their newly launched mobile handsets.

1. Review of literature: A review of literature on consumer satisfaction in telecom industry

users considered as an important.

identify the nature of questions we needed to ask.

Empirical Research - Sampling

 Market share and relative positioning of different brands

 Opinions about attributes of ideal mobile phone

 Satisfaction level of mobile users

 Most important drivers of buying

 Barriers to switching from a one range to other

 Triggers that lead to a need for replacing existing phone

Measurement and Scaling

categories are rated according to different attributes on a scale of 1-5.

comprise of customer from all age group.

1. Target Population: Men and women all the age group.

2. Sampling frame: High End Customer from all over India

3. Sampling Technique: Convenience sampling.

4. Sample Size: 100

Data analysis techniques

 Descriptive Statistics, and

 Data Reduction Techniques like Factor Analysis.

Limitations of the study

considered in the study.

The performance of various mobile handsets according to their users.

Awareness about the availability of 3G mobile handsets in India.