Trouble is ahead for the Korean giant, Samsung, who has managed to establish itself effectively in the Indian market. According to a study by Counterpoint Research, Micromax, the home grown brand has dethroned Samsung in terms of sales and sanity.
Micromax increased shipments to 633,000 smartphones in the last quarter of 2012 from 9,990 a year earlier, while Karbonn grew to 304,000 from zero reports news12. As per the report, Micromax‘s handset shipments share was 16.6 percent in the quarter, while Samsung‘s share was 14.4 percent. This is the first time that Samsung has been uprooted from the pole position. The Unique Selling Position (USP) of Micromax devices remain their low pricing, an often underestimated but a major deciding factor when it comes to selling a mobile phone. The low pricing of the phones is facilitated by the free and open source Android operating system platform, and the will of this company to launch good products into the market.
A number of frontal gimmicks were endorsed my Micromax in the past years to get to a towering position; blow to unlock feature, Mad application, Octa Core and the wolverine act (Hugh Jackman) to name a few. On a global scale, Micromax still has a long way to go as it stands on the 10th position. An Indian brand doing well in its own country is not unheard of. But Micromax win becomes commendable; eliminating the stereotypes.
International Data Corporation (IDC) released a report on the smartphone market in India that claimed that the country will become the world’s second biggest smartphone market, displacing the United States of America which lost the lead to China in 2011.
Apple and Samsung produce high end products; they are inaccessible to majority of the population. Hence, basic handsets still dominate. After the enormous success of Moto G and Moto E (Google–Motorola–Android initiative), it doesn’t quite come as a surprise that companies are ready to reduce prices of excellent products to reach to a wider market, something Apple and Samsung need to work upon.
In China, which is a major mobile phone market, a local company, Xiaomi, overtook Samsung’s lead in the smartphone segment and captured 14 percent of the market, compared to 12 percent for Samsung. The company’s global sales have also taken a hit and Samsung is losing market share, especially in fast-growing markets such as China and India.
At a global level, Samsung’s scale is still impressive and nearly untouched since the past few years. Asim Warsi, Samsung India’s vice-president (marketing, mobile and Information Technology), said: “Samsung’s market share across the mobile business — smartphones, tablets and feature phones — is robust and we continue to lead in both value and volume terms, with significant numbers. We have differentiated ourselves in the Indian market by offering innovative products based on market insights that address customer needs; great customer experience and a nationwide reach.”
“Overall, to further grow our business significantly across every segment, we have expanded and strengthened our product portfolio, including the entry-level mobile phone segment in the June quarter of 2014,” Warsi added.
It seems that Samsung’s need to trim the product line remains a growing element. Cutting down numbers can help efficiently. With fewer products, cost-cutting would be adequate and the selling price could be debated upon; or maybe it can cultivate another crop of wearable products. However, in the coming years, there is absolutely no doubt that the smartphone market in India will change drastically.
Image Source [Logos taken from Google]