Samsung is a well recognized South Korean brand which is currently one of the world’s largest manufacturers of mobile phones and smartphones. The company is also a major vendor of its Android-powered Samsung Galaxy Tab collection, and is generally regarded to have popularised the ‘phablet’ market through its Samsung Galaxy Note family of devices. Samsung became the world’s largest cellphone maker in 2012, with the sales of 95 million smartphones in the first quarter. Whereas on the other hand, Micromax is an Indian consumer electronics company which entered mobile handset business recently (2008) and by 2010 it became one of the largest Indian domestic mobile handsets company operating in low cost feature phone segments. In 2011, Micromax entered the phablet market with the Canvas series. Now the company has entered the smartphone market and tries to change the status quo that innovation and technology comes at a price.
Currently we can see an evolution taking place in the Indian mobile segment market. The following statistics gives us a clear picture of the market scenario: reports say that Samsung currently has a market share of 26 percent whereas Micromax has a 22% market share in the smartphone segment in India. Lets look at what made Micromax ace up and give Samsung a run for its money. The speciality of Indian manufacturers is that they offer smartphones with decent specs at lower price points. This is where Micromax comes into picture. It offers affordable phones with specifications and capabilities that mimic high end phones. Of late, they have also added software enhancements, which are comparable to high-end phones.
Micromax became one of the first brands to offer a 5-inch 720p HD screen phone with a quad-core processor for under Rs 14,000 when it launched the Canvas HD in February. It then quickly launched another flagship phone, the Canvas 4 priced at Rs 17,999 with software features such as ‘Blow to Unlock’, ‘Smart Pause while watching video’, etc; some of which are offered by the Galaxy S4. The S4 also has a 5-inch screen, quad-core processor and a 13 megapixel camera. Micromax has shipped 2 million devices this quarter and its Canvas range has done well to boost the company’s volume share. What Micromax has done is that it has managed to make a Rs 20k product look similar to a Rs 40k one. Samsung surely provides better build quality, superior hardware and has a wider customer service network for their phones but for a user who wants to shift from a Rs.4/5k mobile phone to a smartphone, under Rs. 20k seems to be an attainable phone budget for such buyers.
Samsung’s smartphones market share in India which was 32.7% in the Q1 of 2013 fell to 26% in the Q2 session. Micromax remains steady at No. 2 spot and has crossed the 2 million unit mark in shipments. The Canvas Series have helped boost Micromax’s numbers. But at the same time reports also shows that Samsung’s cash-back and zero percent EMI worked in its favour, specifically for the Galaxy Note II. Recently Micromax signed up Hollywood star Hugh Jackman as its brand ambassador. This was a shocking step which left a lot of us baffled. Shubhodip Pal, Chief Marketing Officer, Micromax said in a press release announcing the association, “ As we look to expand our footprint across the globe in various international markets, the association with the Hugh Jackman is an ideal partnership for us to connect with audiences as he is the leading name in the entertainment industry in the world.” It is most likely that Micromax wants the world to know that it used to be a brand known for inexpensive phones. Signing up with Jackman will help Micromax move their brand closer to the American, European and Korean competition.
Overall all we can do is sit, enjoy and take benefit of the cat and mouse chase as Micromax is sure giving a tough time to Samsung — the world’s leading cellphone maker at least in India, for now.
