This is How Micromax Toppled Samsung in India

micromax-topples-samsungMicromax has overtaken Samsung to become the No 1 mobile brand in India in Q2, 2014 for the first time by capturing 16.6 percent market share, up from 13.3 percent market share in Q1, 2014accroding to Counterpoint Technology Market Research.

Samsung which had a leading position in the Indian market for a long time overtaking Nokia had a market share of 16.3 percent in Q1, 2014. In Q2, 2014 the market share dropped by 1.9 percentage points to reach 14.4 percent. Not only this, even Nokia had a steep fall in its market share from 13.4 percent in Q1, 2014 to 10.9 percent in Q2, 2014.

India Handset Shipments Share in 2014 (in percentage)
Vendor – Q2 – Q1
Micromax – 16.6 – 13.3
Samsung – 14.4 – 16.3
Nokia – 10.9 – 13.4
Karbonn – 9.5 – 8.8
Lava – 5.6 – 5.6
Total Shipment – 55 mn – 56 mn
Source: Counterpoint Technology Market Research

The big question is how Micromax overtook Samsung and became No 1 mobile brand in India?

According to Neil Shah of Counterpoint Technology Market Research, “First, in Q2, 2014 there was a decline in shipment numbers and India market was 55 million vis-a-vis 56 million in Q1, 2014. Second, Micromax increased its market share on the expense of Samsung and Nokia which had a decline in shipment numbers.”

In Q2, 2014, Samsung Galaxy S5 was not received well after the initial euphoria and there was lot of inventory left in June on the other hand Micromax performed quiet well with Unite 2 smartphone.

Unite 2 is the first Micromax phone running on Android KitKat 4.4.2, powered by a 1.3 GHz quad core processor available in 4 vibrant colors – grey, white, red and green to break the monotony from the boring black and blue. It is equipped with the Reverie Multilingual pack, the phone which offers users to communicate in 20 Indian regional languages and cost around Rs 6,999.

Micromax is number one in overall handset shipments and also in feature phone category for the first time with a market share of 15.2 percent followed by Nokia at 14.7 percent. On the smartphone front, Micromax is at second position with market share of 19.1 and Samsung leads the table with 25.3 percent market share.

Indian brands together captured more than two-thirds of the total mobile phone shipments and more than half of the smartphone shipments. In Q3, 2014, one believes that smartphone will grow whereas feature phone market will be flat. It would be interesting to see how $35 – $50 3G smartphone picks up in the country and Indian brands like Micromax, Karbonn and Lava takes this opportunity to convert mobile users to become smartphone users at the earliest. And this will help Indian brands to move up in terms of market share and companies like Micromax and Karbonn will benefit a lot.

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