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Micromax , India’s largest homegrown mobile handset maker, has reported a decline in its annual revenues for the first time in the year ended March 2016 even as a number of Chinese brands rapidly increase their share in Indian smartphone market.
Micromax Informatics reported 6 per cent fall in sales at Rs 9,825.46 crore for 2015-16 against Rs 10,450.47 crore in the previous year, according to company filings accessed from the Registrar of Companies. The decline comes after years of big double-digit growth. In 2014-15, Micromax had grown its sales by a whopping 47 per cent.
A Micromax spokesperson said the company’s revenue figures did not include sales of the premium YU brand, which is a wholly owned subsidiary floated in 2014, and international sales. "YU emerged as a successful premium subsidiary, in line with our vision to create a new online brand in a short span of time," the person said.
Industry experts attributed the decline in the firm’s revenues to increased Chinese competition. "The share of Chinese brands increased from 18 per cent to 32 per cent in the past one year driven by growth of players like Oppo , Vivo , Lenovo and others, whereby Micromax was one of the firms to lose maximum market share,” said Tarun Pathak, senior analyst at Hong Kong-based Counterpoint Technology Market Research.
As per Counterpoint, Micromax’s share in overall Indian handset market came down to 10.2 per cent in the July-September quarter from 13.8 per cent a year earlier. In smartphones segment, the company’s share came down to 9.9 per cent in the same quarter from 17.7 per cent in the same period last year. It also lost ground in feature phones that contribute around 15-20 per cent to its revenue.
Micromax is the second largest player in India’s overall handset market after Samsung.
Micromax sales down 6 per cent in FY16 - ET Telecom
Micromax Informatics reported 6 per cent fall in sales at Rs 9,825.46 crore for 2015-16 against Rs 10,450.47 crore in the previous year, according to company filings accessed from the Registrar of Companies. The decline comes after years of big double-digit growth. In 2014-15, Micromax had grown its sales by a whopping 47 per cent.
A Micromax spokesperson said the company’s revenue figures did not include sales of the premium YU brand, which is a wholly owned subsidiary floated in 2014, and international sales. "YU emerged as a successful premium subsidiary, in line with our vision to create a new online brand in a short span of time," the person said.
Industry experts attributed the decline in the firm’s revenues to increased Chinese competition. "The share of Chinese brands increased from 18 per cent to 32 per cent in the past one year driven by growth of players like Oppo , Vivo , Lenovo and others, whereby Micromax was one of the firms to lose maximum market share,” said Tarun Pathak, senior analyst at Hong Kong-based Counterpoint Technology Market Research.
As per Counterpoint, Micromax’s share in overall Indian handset market came down to 10.2 per cent in the July-September quarter from 13.8 per cent a year earlier. In smartphones segment, the company’s share came down to 9.9 per cent in the same quarter from 17.7 per cent in the same period last year. It also lost ground in feature phones that contribute around 15-20 per cent to its revenue.
Micromax is the second largest player in India’s overall handset market after Samsung.
Micromax sales down 6 per cent in FY16 - ET Telecom
