Samsung vs Indian brands: Why Micromax, Karbonn are steadily gaining - Firstpost

'Indian' mobile manufacturers are putting up some tough competition for big brands like Samsung, Nokia and Sony as the latest numbers from the International Data Corporation (IDC) show. The Q2 numbers for 2013 are out and what is noticeable is that Samsung, which in Q1 of 2013 had a market share of 32 percent is facing some serious competition from home grown vendors such as Micromax and Karbonn. Samsung is still number one in the Indian smartphone market but its share has fallen to 26 percent. Micromax is the biggest challenger to Samsung with nearly 22 percent market share. ( the company had 19 percent market share in Q1) Micromax also shipped 2 million devices this quarter and its Canvas range has done well to boost the company's volume share. Karbonn is at number three with a 13 percent percent market share. The Micromax Canvas HD which offers many features of the Samsung Galaxy S4 Interestingly 29 percent of the Indian smartphone market is dominated by 'Others' which of course includes Apple but also Indian brands like Celkon, Intex, Lava Mobiles etc. So how have Indian brands, which are often accused of just recycling Chinese phones, managed to give such tough competition to global giants? Here are three reasons. Appeal for the first time smartphone user: While the Indian smartphone market is growing, one needs to highlight that penetration is still very low. As the IDC report points out, Q2 saw over 9.3 million smartphones shipped in India with phablet shipments (devices with 5.00-6.99-inch screens) growing 17 percent. Compare this to China, which saw 97 million units shipped in Q1 of 2013 alone. As Mary Meeker's 2013 report pointed out, India currently has 67 million smartphone subscribers which is a mere 6 percent of the total number of mobile users. So when many people using feature phones make the first switch to a smartphone, an Indian brand which offers them fairly decent technical specifications at a low-cost makes perfect sense. For someone who is making the first jump from say a Rs 3000-4000 feature phone to a smartphone, it is unlikely that the next phone they buy will be a Rs 30,000 one. It is here that Indian manufacturers tend to benefit by offering smartphones with good specs at lower prices. Price and features: The Indian market is highly price point driven. Micromax became one of the first brands to offer a 5-inch 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 that are offered by the Galaxy S4. The phone also has a 5-inch screen, quad-core processor and a 13 megapixel camera. Micromax, in fact is offering phones in every price range: The Canvas 2 A110 which is dual-core processor phone is available for Rs 9,690 on Snapdeal. Compare this to a Samsung Galaxy S4 mini which was launched in India in July but with a hefty price tag of Rs 27,900. The smartphone is also a dual-core processor phone but with a Super-AMOLED display. The point is that while Samsung definitely has superior specs to offer in terms of quality, to the average buyer, it might not make so much sense to pay Rs 27,900 for a dual-core phone when there many quad-core phones available in the market for under Rs 20,000. The Karbonn Titanium Karbonn too recently launched a smartphone with a 5.5-inch full HD screen, a quad-core processor and a 13 megapixel camera. The phone called the Titanium S9 is priced at Rs 19,990. In comparison to this, the Samsung Galaxy Mega 5.8-inch screen version is priced at Rs 23,900, doesn't have a full-HD screen and has a dual-core processor. The stigma of the cheap Indian brand is over: Karbonn and Micromax are now keen to move beyond the 'cheap option' image. The choice also explains why the Titanium S9, Canvas 4 and Canvas Doodle 2 were priced above Rs 18,000. Shubhodip Pal, chief marketing officer at Micromax, said to the Times of India, "While the Rs 13,000- Rs 20,000 is currently the sweet spot in the smartphone segment, we want to further increase our presence in the premium-end with relevant products." While the firms haven't yet launched a smartphone that is above Rs 20,000, there is no doubt that they wish to be perceived as a brand that offers high-end smartphones as well. Both Micromax and Karbonn have managed to establish themselves as worthy brands with a section of the Indian consumer and are reaping the benefits of that. In fact, Micromax's Canvas 4 was pitted against the biggest competitor in the market, the Samsung Galaxy S4, with the company following a very aggressive marketing campaign for the launch of its phone. From television commercials to a live web feed for the launch of its phone, the Canvas 4 was the most talked about phone for the Indian smartphone market. Personally, when I first saw someone with a Canvas 4, I thought it looked like an S4 from afar. So yes, Micromax may not offer all that the S4 does such as such as a full-HD screen) but it has managed one thing. Make a Rs 20k product that looks similar to a Rs 40k one. And that is quite something. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFO_uGshwFXMMuOAos6TJISOSF0rw&url=http://www.firstpost.com/tech/samsung-vs-indian-brands-why-micromax-karbonn-are-steadily-gaining-1080579.html

Put the internet to work for you. via Personal Recipe 2598265