Section 37
How Micromax rose to No. 1 and then lost the market
What happens when a market leader is slow to move to the next technology?
- case
- Failure
- years
- 2014-2018
- 16.6% (Samsung 14.4%)
- Overall mobile market share (Counterpoint) · Apr-Jun 2014
- 19.1% to 5.3%
- Smartphone share, 2014 vs March 2017 · 2017
- About 43%
- Chinese brands' smartphone share (Counterpoint) · 2017
- 01
The situation
Micromax grew by selling affordable phones through a large offline retail network. In April-June 2014, Counterpoint data showed it as India's largest mobile phone supplier with a 16.6 per cent share against Samsung's 14.4 per cent.
- 02
The decision
When 4G arrived faster than expected, Chinese rivals had 4G handsets ready while Micromax still had 3G and 2G stock to sell. Micromax's leadership told Outlook Business that the company was 'caught on the wrong foot.'
- 03
The outcome
Micromax's smartphone share fell from 19.1 per cent in 2014 to 5.3 per cent in March 2017, Outlook Business reported, while Chinese brands reached about 43 per cent of the smartphone market according to Counterpoint. By the third quarter of 2018, Xiaomi led India's smartphone market with 27 per cent.