Old brands, new battles: Acer, Alcatel return as Honor, Nokia fade in India’s smartphone war

Old brands, new battles: Acer, Alcatel return as Honor, Nokia fade in India’s smartphone war

Acer and Alcatel are betting on second chances in India’s cutthroat smartphone market—just as brands like Nokia and Honor fade into obscurity.

The two once-familiar names are making a comeback through licensing deals: Acer with Indkal Technologies, and Alcatel via NxtCell India, which licenses the brand from TCL Communication under a Nokia-owned trademark.

India remains the world’s second-largest smartphone market, but analysts say only brands that offer true differentiation stand a chance.

“Being the second-largest smartphone market in the world, India does hold potential for new entrants. However, to make an impact, these brands must offer clear differentiation to cut through the market noise,” said Tarun Pathak, research director at Counterpoint Research.

That differentiation, according to Pathak, could come in the form of a clean, bloat-free user interface, a robust distribution network, localised marketing strategies, and aggressive pricing.

Faisal Kawoosa, founder analyst at TechArc, pointed to the trajectories of brands like Realme, iQOO, Google Pixel, Nothing, and Honor, saying that only those able to deliver tangible value have managed to grow and survive.
“Acer and Alcatel have re-entry. If they have nothing concrete to offer, they won't be able to sustain themselves too long. They might remain in the market for some time, but we will see them as vulnerable brands for some time till it becomes clear what they have to offer,” Kawoosa noted.

Both companies are targeting the sub-Rs 20,000 price bracket — a segment that sees the highest volumes. Pathak added that while this segment is ripe for experimentation due to lower brand loyalty, success depends heavily on consistent and compelling value propositions.

According to Counterpoint Research, over 93% of the Indian smartphone market is dominated by the top ten brands, leaving little breathing room for newcomers.

Indkal Technologies, Acer’s brand licensee, has introduced two smartphones in the sub-Rs 20,000 range, focusing on performance and battery life as key differentiators. Alcatel is eyeing a similar space, planning to launch devices between Rs 15,000 and Rs 25,000 aimed at working professionals and Gen Z users.

Anand Dubey, CEO of Indkal Technologies, told Moneycontrol that relaunching a brand is often more challenging than launching it for the first time due to preconceived notions and negative assumptions.

“We have to tackle all of that. The relaunch is also an exercise in fundamentals, which includes launching a solid and competitive product, coupled with regular software updates and services. If these things are sorted, then any brand will have a chance in India to perform.”

Speaking separately to Moneycontrol, Atul Vivek, Chief Business Officer at Alcatel, acknowledged the saturated state of India’s smartphone market but emphasised that the country’s scale still provides openings for new players.

“The opportunity is across price segments… the rate of urbanisation is increasing. Small towns are gaining access to good facilities, infrastructure, and internet, which has raised awareness levels. Therefore, we think that coupled with good technology and an affordability factor built in, we'll be able to cater to the requirements of all price segments,” Vivek said.

With Chinese players currently accounting for 65–70% of the market, Vivek believes there’s room for a lifestyle brand with a European flair.

“Products coming from the US and Europe command a premium positioning because they are associated with better design, better quality service standards, and this is what we also want to make our key selling propositions in India.”

While Vivek is betting on Alcatel’s French heritage to appeal to Indian consumers, the brand itself is owned and operated by China-based TCL Communication under a trademark license from Nokia.

For its comeback, Alcatel has earmarked an initial investment of $30 million (approximately Rs 260 crore), which will be allocated toward manufacturing, building a supply chain, marketing and distribution, and brand development.

Analysts emphasised that Acer and Alcatel’s success in their second innings will require more than brand nostalgia, pointing to the decline of Nokia under HMD Global, which has since shifted to promoting its own brand. They also highlighted the struggles of Chinese brand Honor, which re-entered the Indian market with high expectations but failed to deliver a compelling value proposition.

“Honor came in with the buzz that it had something new to offer,” said Faisal Kawoosa. “But it brought nothing specific to the table, and the market response has been largely dismissive.”

Pathak echoed the sentiment, noting that Honor lacked clear positioning and faltered in its channel strategy. “It’s a textbook case showing that even good products can fall flat in India’s hyper-competitive market if there isn’t a strong go-to-market strategy,” he said.