Micromax Smartphone Sales Drop For 1st Time in FY16, While Chinese Phone Sales Zoom!

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Micromax, India’s largest smartphone manufacturer, is facing some heat in its own ground. The foreign companies have also become stronger, but Micromax has failed to keep up with this pace despite bringing in more marketing revenues and sales persons.

Last year Micromax emerged as the top smartphone seller in India, however for the first time since then, Micromax’s smartphones sales are down by 6% in financial year 2016. The Chinese smartphone makers on the other hand are becoming more prominent, as their shipments have increased.

ET reported, “Micromax Informatics reported 6 per cent fall in sales at Rs 9,825.46 crore for 2015-16 against Rs 10,450.47 crore in the previous year, according to company filings accessed from the Registrar of Companies.”

A report by Strategy Analytics says, “China smartphone shipments increased 4 percent annually from 105.1 million units in Q2 2015 to 109.0 million in Q2 2016. China returned to growth for the first time in a year due to improved LTE volumes from local brands, robust operator promotions, and a stabilized economic situation. China remains by far the world’s largest smartphone market, accounting for nearly 1 in 3 of all 340.4 million smartphones shipped globally this quarter.”

The overall share of Chinese brands has increased from 18 to 32% in the last year, while Micromax has not accounted for Yu Televentures’ sales. Micromax’s sales share has dropped to 9.9% from 17.7% from last year.

Will Micromax be able to survive the fierce competition?

Xiaomi made record sales this year at the Diwali festive sale on e-commerce sites, while Huawei has been launching its flagship phones in India for its fans. These Chinese companies have come a long way in their profile and image in the Indian industry.

Micromax also sources some of its phones from China, however being an Indian brand it must challenge the Chinese players. Micromax was also planning to enter the Chinese market soon, but it seems that those plans will have to be delayed.

Since Micromax has adopted Android, it has the potential to get into the market like OnePlus and launch high-end smartphones that are not expensive. Oppo, Xiaomi and Gionee have launched some excellent smartphones that can compete with the likes of Apple as well, something that is missing from Micromax’s stable.

If Micromax doesn’t change its strategy soon, it will lose out on a lot of market share, and a 6% drop, which is pretty big for the company right now, could pose some serious issues in coming years.

Source: ET

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