• HOME
  • AWARDS
  • Search
  • Help
Current time: 30-07-2018, 02:57 AM
Hello There, Guest! ( Login — Register )
› LIFE STYLE › COMPUTER, MOBILE & GADGETS v
1 2 3 4 5 6 ..... 12 Next »

Mobiles Micromax, once a rising star, struggles

Verify your Membership Click Here

Thread Modes
Mobiles Micromax, once a rising star, struggles
urpussysucker Offline
Princess Bee
*******
Supporter of en.roksbi.ruMost Number of Threads
Joined: 05 Aug 2014
Reputation: 4,383


Posts: 81,012
Threads: 4,890

Likes Got: 18,879
Likes Given: 18,676


db Rs: Rs 2,328
#1
14-03-2016, 07:18 PM
Micromax, once a rising star, struggles
MUMBAI (Reuters) - A year ago, Micromax vaulted past Samsung Electronics Co Ltd to become India's leading smartphone brand. Today, its market share has nearly halved, several top executives have resigned, and the company is looking for growth outside India.

In Micromax's slide to second place is a tale of the promise and peril of India's booming but hyper-competitive smartphone industry.

India is the world's fastest-growing smartphone market. Shipments of smartphones jumped 29 percent to 103 million units last year.

Rapid growth has helped nurture a crop of local brands, led by Micromax, that outsourced production to Chinese manufacturers. Now, as Samsung rolls out more affordable phones, the same Chinese factories are entering the Indian market with their own brands, depressing prices and forcing Indian mobile makers to rethink their strategies.

"What the Indian brands did to the global brands two years ago, Chinese phone makers are doing the same to Indian brands now, and over the next year we see tremendous competition for Micromax and other Indian smartphone makers," said Tarun Pathak, analyst at Counterpoint Research in New Delhi.

MANAGEMENT TENSIONS

Micromax, which was founded in New Delhi by four partners in 2000 but only began selling mobile phones in 2008, built its market share by working with Chinese manufacturers such as Coolpad, Gionee and Oppo to offer affordable phones quickly. In 2015, it launched more than 40 new models.

In 2014, the founders brought in outside managers to lead the company at a time when Micromax was challenging Samsung to become the largest mobile phone maker in India.

But tensions arose soon after between founders and the newly hired executives, six former executives told Reuters. These conflicts undermined Micromax's attempts to raise funds for expansion, say former executives. Last May, Alibaba walked away from a mooted $1.2 billion purchase of a 20 percent stake, citing a lack of clarity on growth plans, according to one executive involved in the discussion. Micromax co-founder Vikas Jain said in an interview with Reuters this week that the company and Alibaba disagreed on a future roadmap.

Alibaba declined to comment.

Former executives said the lack of fresh funding undermined a proposal by the new executives to move Micromax's research and design operations, which had previously been outsourced, in-house. The move was intended to help Micromax differentiate itself from generic Android clones.

"We hired about 80-90 people in Bangalore to do in-house software and design, but with no money from the investors and little interest from the founders, that team fizzled away and that office has been partially shut down now," said a former executive.

After Alibaba walked away, Micromax struggled to attract other investors who would have been key to Micromax's plan to invest in software R&D and hardware design. The company was forced to scale down the in-house R&D project, a top executive involved in the fundraising plan said.

At least five senior executives have resigned since November. The latest was Vineet Taneja, chief executive since 2014, who quit last week.

"THE WHOLE INDUSTRY IS SUFFERING"

Meanwhile, Chinese handset makers, including Coolpad and Oppo, to which Micromax outsources its manufacturing, were sharpening their focus on India. Samsung, too, began to introduce more affordable models there.

In 2015, Chinese brands doubled their market share to 18 percent, according to Counterpoint Research, taking away business from Indian budget phone makers such as Micromax, Intex, Lava and Karbonn. Indian brands' market share fell from 48 to 43 percent last year.

"Right now the whole industry is suffering because of the Chinese phones," Jain told Reuters. "We have seen large write-downs happening on inventory in China, and that inventory is being passed on to India at a markdown."

Chinese phone makers including LeEco, Xiaomi and Lenovo have also partnered with e-commerce companies including Amazon India and Flipkart to sell phones directly to consumers, saving on distribution and sales and reaching new online shoppers directly.

In the final quarter of 2015, Micromax's shipments fell by 12.1 percent, against growth of 15.4 percent for the sector, according to industry tracker IDC. Micromax's share of the smartphone market fell to 13 percent in the fourth quarter from 22 percent at its peak in 2014, according to IDC.
Micromax, which is privately held and does not disclose financial information, maintains it is profitable. Founders Jain, Rahul Sharma, Rajesh Agarwal and Sumeet Arora still control about 80 percent of the company. They have raised nearly $90 million from investors in the last five years.

Facing competition from both Samsung and inexpensive Chinese phones, Micromax plans to increase production in India. Jain said that the company plans to double local manufacturing output from 1.5 million units to about 3 million units a month over the next six to 12 months.

Already a top-10 brand in Russia, Micromax is seeking a partner to help it expand further outside India and diversify into televisions and tablets.

"Micromax needs to diversify geographically and also needs to diversify product lines," said Neil Mawston, executive director of the global wireless practice at London-based research consultancy Strategy Analytics. How well it manages that diversification, Mawston says, will be key.
Find
Reply


« Next Oldest | Next Newest »


Possibly Related Threads...
Thread Author Replies Views Last Post
Mobiles  Indian phone maker Micromax's CEO quits amid falling sales urpussysucker 0 1,835 05-03-2016, 02:02 PM
Last Post: urpussysucker
Computers  Micromax Canvas Laptab LT777: A tablet that falls short as a laptop urpussysucker 0 1,618 17-01-2016, 08:56 PM
Last Post: urpussysucker
Mobiles  Micromax Canvas Fantabulet priced at Rs 7,499 launched; smartphone to be available on kishurex-1 0 1,149 14-01-2016, 09:32 AM
Last Post: kishurex-1
Mobiles  Micromax plans to make all phones locally urpussysucker 2 2,969 19-12-2015, 04:28 PM
Last Post: urpussysucker
Computers  DataWind introduces new tablet 'PC 7SC Star' in India urpussysucker 0 1,257 18-12-2015, 09:15 PM
Last Post: urpussysucker
Mobiles  Micromax launches new-age flagship smartphone YUTOPIA urpussysucker 0 1,908 17-12-2015, 09:17 PM
Last Post: urpussysucker
Mobiles  Micromax launches Canvas Pulse 4G for Rs.9,999/- urpussysucker 0 1,476 16-12-2015, 04:24 PM
Last Post: urpussysucker
Mobiles  Now, Micromax launches 4G smartphone urpussysucker 2 3,600 19-11-2015, 11:00 PM
Last Post: urpussysucker
Mobiles  Micromax to launch new affordable smartphone today urpussysucker 2 2,502 05-10-2015, 10:50 PM
Last Post: urpussysucker
Mobiles  Micromax's Yu Yureka to Be Available to Buy on Thursday Gabbar Singh 1 1,439 02-04-2015, 03:18 PM
Last Post: Gabbar Singh

  • View a Printable Version
  • Subscribe to this thread


Best Indian Adult Forum XXX Desi Nude Pics Desi Hot Glamour Pics

  • Contact Us
  • en.roksbi.ru
  • Return to Top
  • Mobile Version
  • RSS Syndication
Current time: 30-07-2018, 02:57 AM Powered By © 2012-2018
Linear Mode
Threaded Mode


hindi sexys story  ammavin sex  mallu telugu sex stories  piel en poes  saniya mirza sexy images  gujarati ma varta  big ass namitha  may sexy neha  desi xxx pron  bombay aunty  tamil actress fakes  tamil actresses sex stories  chikako katha  original homemade porn  bhabhi ki bahan  www.madhose sexykatha.com  nanga lund  www.kashmir sex.com  incest adult cartoons  ma ke sath  netcafe scandle  mallu kambi images  doodhwali actress  anjali mehta in tarak mehta ka ooltah chashmah  tamil whores  babita iyer  www.hinde sex storey  big booba pics  antharvasna stories in hindi  telugu chat sex stories  indian masala board stories  armpit exbii  maa ko choda  angela devy  malayalam sex stories online read  dia mirza fakes  nanga bollywood  hot videos in kerala  free prons xxx  whore wife sex stories  bhai behan ki hindi sex stories  gujarati sex stories  sali kahani  adult breastsucking  girls caught changing clothes  boddu aunty  kashmir hot girls  muslims xxx  exbii actress  milky boob pictures  desi maal for shag facebook page  gandi sexi kahani  rani ko choda  exbie stories  sexy stories in oriya  wifey fucking  www.pussy.cpm  srilankan tamil sex  sex story urdu  tamil adult websites  desi papa pictures  hindi sex story in hindi pdf  sexy storys indian  sleeping pills sex stories  sabita bhabi hindi comic  sexy hijras  manchi puku  hindi sexy stories antarwasna  telugu sex kathalu latest  sexies stories  angela devi naked  marathi shrungar katha free  telugu honeymoon stories  anjali kara images  aunties boobs exbii  sex stories tamil pdf  wife swapping fantasy  angala devi  gaand stories