Active Stocks
Fri May 24 2024 15:59:27
  1. Tata Steel share price
  2. 174.80 -0.37%
  1. NTPC share price
  2. 374.85 0.68%
  1. State Bank Of India share price
  2. 828.60 -0.45%
  1. ITC share price
  2. 436.10 -1.16%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ Companies / News/  Micromax eyeing comeback amid backlash against China, to launch 3 smartphones
BackBack

Micromax eyeing comeback amid backlash against China, to launch 3 smartphones

Through their official Twitter handle the company told its followers that they will launch three new smartphones in India with premium features, modern looks and budget friendly price

Micromax used to be the leading smartphone brand in India around 2015-16 (Bloomberg)Premium
Micromax used to be the leading smartphone brand in India around 2015-16 (Bloomberg)

Indian phone company Micromax is eying a comeback in the smartphone segment and is hoping the ongoing backlash against China over the killing of Indian army men by Chinese in Galwan valley and the growing demand to boycott products by Chinese companies will work in their favour.

Through their official Twitter handle the company told its followers that they will launch three new smartphones in India with premium features, modern looks and budget friendly price. The company hasn’t disclosed any other details on these phones.

Micromax also stands to gain from the recently announced PLI (production linked incentive) scheme under which the Indian government will choose five Indian companies and help them establish large scale mobile manufacturing by providing them incentives of 4-6% over a period of 5 years for manufacturing in India. Government has allocated 40,000 crore under the PLI scheme.

Government will also invite 5 global phone companies to take advantage of the scheme as many of the Chinese and other global companies have started assembling phones in India through their manufacturing partners.

Micromax used to be the leading smartphone brand in India around 2015-16. According to Canalys, the Indian company overtook Samsung in Q4 2015, grabbing 22% of smartphone sales in India, ahead of Samsung’s 20%. However, at that time, most Indian phonemakers including Micromax were importing phones directly from China.

Following the entry of brands like Xiaomi, Lenovo, Oppo and Vivo, most of the Indian phone companies including Micromax, Lava and Intex started to lose market share. One by one every Indian brand was knocked out of the top five. Many were forced to diversify into other product categories while others limited themselves to entry level smartphones or feature phones. Micromax’s last smartphone was the iOne Note. It was launched in October 2019. Most of the phones launched by Indian companies are around 5,000.

To take on the Chinese companies, Micromax will have to look beyond the entry level segment and bring out smartphone in the sub-$200 segment as that is where majority of sales happen. To be sure, IDC (International Data Corporation)’s market tracker for Q1 2020 shows that the average selling price of smartphones in India is $171, with the sub-$200 segment accounting for 76.2% of overall shipments. The mid-range phones ($200<300) accounted for 18.2% of the overall smartphone market.

According to recent market reports, Chinese brands account for more than 75% of Indian smartphone market. Samsung is the only non Chinese company that is still in the top five smartphone brands’ list in India.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

ABOUT THE AUTHOR
Abhijit Ahaskar
Abhijit writes on tech policy, gaming, security, AI, robotics, electronics and startups. He has been in the media industry for over 12 years.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 18 Jun 2020, 09:08 PM IST
Next Story footLogo
Recommended For You