Micromax Close To Overtaking Samsung In India

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Indian currency may be losing its value, but smartphone shipments is on huge rise in the country. According to a report by IDC, Indian smartphone market almost tripled its shipments year over year (YoY) in the second quarter of 2013 Q2 (2Q13).

The love for phablets is also evident from the numbers, the smartphones with screen sizes between 5 inch and 6.99 inch grew 17 times YoY which now account for 30% of smartphones.



The brand wise smartphone shipments show that Samsung is the leader in terms of sales with 26% market share, but Indian smartphone vendor Micromax is very close with 22% of share, followed by Karbonn with 13% share. Nokia and Sony follow the pecking order with 5% market share, other brands have 29% share.



It is clear that introduction of low price phablets from brands like Micromax and Karbonn has given them huge boost in sales. Another reason for the success of these handsets is Dual-SIM support.

So CAN Micromax overtake Samsung for the no1 spot in terms of shipments by the end of 2013?
 
ayanavish said:
Instead of importing and rebranding Chinese mobiles, had these Indian companies been manufacturing their own mobiles, Indian economy would have been in a much better position.
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Production Can be done in india
Mean issue is the scams and the corrupt Government
 
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destiny said:
Production Can be done in india
Mean issue is the scams and the corrupt Government
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Production cannot be done in india. As Micromax has 0 knowledge of making phones. They just rebrand phones, don't u get it?

The effing aakash tablet is Chinese for Christ's sake.

Even if production is started in india, Micromax will start charging like Samsung for their crap.
 
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Manufacturing necessary for economy but India don't have that good capability which enable manufacturers to price their devices lower.

Just for information, Lowest capacity steel plant of China is double the size of highest capacity steel plant in India, massive economy of scales.
 
I am sure Micromax must have done a kind of a cost benefit analysis before deciding the correct strategy with their phones.

The only problem I have had with them is that they should really enter into better quality control norms wherever their production is taken place.
 
vyral_143 said:
Would not that increase their cost ?
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It would, but that would also mean better products which in turn form better perceptions about their brand and which in return helps them to meet their targets.
At the moment, i feel they are getting away with it as they are targeting volume over any particular segment. But as new players enter and old players re- formulate their strategies, product quality becomes an important issue.
 
vantheman5211 said:
It would, but that would also mean better products which in turn form better perceptions about their brand and which in return helps them to meet their targets.
At the moment, i feel they are getting away with it as they are targeting volume over any particular segment. But as new players enter and old players re- formulate their strategies, product quality becomes an important issue.
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They don't care. They are making easy money by re-branding chinese phones. Why change?
 
vantheman5211 said:
It would, but that would also mean better products which in turn form better perceptions about their brand and which in return helps them to meet their targets.
At the moment, i feel they are getting away with it as they are targeting volume over any particular segment. But as new players enter and old players re- formulate their strategies, product quality becomes an important issue.
Click to expand...

Why would they really care? Most of these companies, which are coming into the market by re-branding Chiese models have only one target in mind - to exhaust the "n" number of imported models, make a profit and then again replenish their inventory with a new model. If they start to invest in giving support, then they have to increase the price of the handsets and compete directly with the likes of Sony and Samsung.

For RMA of imported Chinese phones, any way for them, it would be too much of a hassle sending the device back to China and get it repaired. The easy way is to keep the faulty device in the service center for a month or two, try to fix the problem in-house, if nothing works out send the faulty one back to the customer. In the meantime, launch another model with better specs.
 
ayanavish said:
Why would they really care? Most of these companies, which are coming into the market by re-branding Chiese models have only one target in mind - to exhaust the "n" number of imported models, make a profit and then again replenish their inventory with a new model. If they start to invest in giving support, then they have to increase the price of the handsets and compete directly with the likes of Sony and Samsung.

For RMA of imported Chinese phones, any way for them, it would be too much of a hassle sending the device back to China and get it repaired. The easy way is to keep the faulty device in the service center for a month or two, try to fix the problem in-house, if nothing works out send the faulty one back to the customer. In the meantime, launch another model with better specs.
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Thats the current strategy they are using, and i agree that it is bearing fruit. But i really think that they ought to capatalise on this currently and build more customer lifetime value as they move on. I think eventually they would need to take a hit in margins as competition increases and the bigger brands start to undercut their base offerings by having similar featured phones of their own.

Would be interesting how they plan their next strategic move.
 
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micromax close to overtaking samsung ?

The OP's article does not show any figures YoY for the different brands, just shows us the market share today. Did micromax have a bigger share last year or what.

Sony M ? what effect will it have. Nokia for under 10k. Samsung is going to try as well.

So what happens to these 'indian' companies when the branded guys start stamping on their turf.

They will start to shrink.
 
blr_p said:
So what happens to these 'indian' companies when the branded guys start stamping on their turf.

They will start to shrink.
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The trouble is that as of now, in their attempt to compete with the cheaper brands, the bigger companies have really reduced the quality of their phone. At the same time, they are still a little costlier than the desi brands. So, in the end, even the so called big brands like samsung and HTC last just as much as the smaller brands. I have seen this in so many cases. There remains no incentive to buy big brands any more. Earlier they had better quality and service. Now days, even big brands have shitty quality and service (most are outsourcing the service part). My friend cracked his Nokia Lumia 510 screen just by closing the battery cover in a normal way. HTC took 21 days to replace my HTC One V which had a known issue (reception problem). My friend's Micromax Canvas 2+ had issues and those guys replaced it in 5 minutes
 
prateekS said:
Microsoft to purchase nokia for 7.2 billion $.

May nokia RIP.
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Came as a shock to me

For many Finns, the fact that a former Microsoft executive had come to Nokia, bet the firm's future on an alliance with Microsoft, laid off tens of thousands and then delivered it into Microsoft's hands, was a galling snub to national pride.
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baccilus said:
The trouble is that as of now, in their attempt to compete with the cheaper brands, the bigger companies have really reduced the quality of their phone. At the same time, they are still a little costlier than the desi brands. So, in the end, even the so called big brands like samsung and HTC last just as much as the smaller brands.
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Reduced the quality is vague. They use lower end components but its still a tier-1 company instead of using parts that did not meet higher quality requirements which appear in the indian brands. They can juggle parts about anyway they want, so one part might be good but no idea about the rest. Local brands work fine for 6 months then the problems start to appear.
Basically its an issue of trust. Forget any OS updates or 3rd party support. what about 2nd hand value ?

People would rather pay less and replace more often. I've usually done it the other way around. If you hold onto a device for 3 years say, then you get a better deal.

What i'd like ot understand better is why dual sim is so popular. I hear its popular in Africa too. The reason there is due to bad coverage. Is it the same here. I'd imagine dual sim would be popular with migrants too as it allows people from back home to stay in touch.

baccilus said:
I have seen this in so many cases. There remains no incentive to buy big brands any more. Earlier they had better quality and service. Now days, even big brands have shitty quality and service (most are outsourcing the service part). My friend cracked his Nokia Lumia 510 screen just by closing the battery cover in a normal way. HTC took 21 days to replace my HTC One V which had a known issue (reception problem). My friend's Micromax Canvas 2+ had issues and those guys replaced it in 5 minutes
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How long did Samsung take to repair any problems ? Lots of outsourcing going on there as well, thing is Samsungs are maintainable. I don't care if they are not that pretty, so long as they can be repaired. The large volume of sales means parts availability should not be an issue.

21 days for HTC implies they are not doing it in country and sending it abroad like with the xperia Z line.

How common is the 510 screen issue ? xperia ZR has a rather delicate sim or is it microsd tray which is easy to break if you're not careful. I see these more as product idiosyncrasies rather than lowered quality.

The report in itself is painting a more rosy picture about rebranded products which i don't believe is sustainable in the long term. Samsung share in india 26%. Their world share is 30%. Not a big difference is it. Now if samsung share in India was 5% then i'd be worried :)
 
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