Mobile handset manufacturer Nokia is pinning high hopes on the replacement market which is growing at an annual rate of 60 per cent to 65 per cent.

"The handset replacement market is growing at a rate of 60 per cent to 65 per cent per year. We are registering high sales figures from this segment," Director (sales) of Nokia India V Ramnath said on Thursday.

Launching the Asha series of budget smartphones here, Ramnath said people in urban areas are changing phones more than those living in semi-urban or rural areas.

He said this is leading to high growth in the replacement segment.

Ramnath said Nokia's strategy was to focus on innovations and tap customers at all the price points.

About the smartphone market in India, he said it is growing at 40 per cent per annum, while it constituted only nine per cent of the overall mobile phone market in terms of sales.

"We are looking at both volume and value growth in the Indian market," he said.