Will Micromax Entry Into Europe Change The Mobile Landscape?

Micromax is now one of the leading mobile device manufacturers in the country. Based in Haryana, this company has now reached the point that it’s a tough contender for smartphone giants such as Samsung, in terms of market share. After tasting success in the Indian subcontinent, the firm has now decided to tread foreign ground, with their eyes now on Europe.  Micromax will now be available in Europe.  Do they have what it takes to land it big in the European market? Read on to find out.

Micromax – Its Status Today

Micromax is presently just behind Samsung in India, in terms of shares. This firm has a 22 per cent share in the Indian mobile device market at the moment, second only to Samsung, which has a share of 26 percent. This mobile manufacturing company is way ahead of companies such as Nokia, Blackberry, and Sony, which were once riding the high horse in the Indian mobile market.

Reasons Behind Micromax’s Success

The major reason behind Micromax’ recent success has been its smartphone devices and phablets. It has also presented Indian users with feature-rich devices that are similar to foreign-brand mobile phones, but at nearly half the price.

Another reason for Micromax’s success has been its sustained advertisements via television and print. Several TV commercials for promoting the company’s devices have been carried out very professionally, making the customers believe that they’re purchasing a world-class device.

 micromax market

Of late, the company has featured an advertisement starring Hugh Jackman, who has recently been signed as their brand ambassador. This news has spread like wildfire across the web, with surging numbers of likes and comments on social networking sites such as Facebook. And while we’re on about social networking, the company has focused a great deal of their time and energy on social media too!

The Current Mobile Market In Europe

micromax mobile market

 

Currently, Europe has the largest subscriber rate worldwide, at 79 per cent. However, things are not so rosy, as it is the only such geographic region to have its revenues declining at a steady rate. The GSMA reports that in the year 2012, the revenues in the mobile industry have been 151 billion pounds, while it was 162 billion pounds in 2010. This is such a sharp decline in just three years!

In Western Europe, the mobile market has seen a steady increase in the second quarter, but decreased from the first quarter of the year, according to a report by the International Data Corporation (IDC).

The Europe, Middle East and Africa Quarterly Mobile Phone Tracker by IDC, released in August 2013, has revealed that the current shipments of mobile devices has increased by 2.6 per cent, making it 43.3 million units. In the meantime, the feature phone segment saw a sharp decline of 27 per cent year on year, resulting in 10.7 million units being shipped in the second quarter. On the other hand, the smartphone segment has seen a steady increase of 19 per cent from the previous year, to 32.6 million units, representing 75 per cent of the total shipments.

The second quarter has been the weakest in Europe for the past two years, as mobile operators are careful in launching new devices for the Christmas promotions. However, it is a known fact that the second quarter is one of the most crucial times of the year for launching new devices.

The sales decline in Europe has been attributed to the fact that they’ve been delayed in incorporating technologies such as 4G and LTE. Presently, 4G and LTE technologies are featured in just 0.3 percent of the total number of mobile devices in the region; while for South Korea, the numbers are much higher, at 28 per cent. In the US, 4G and LTE account for 11 per cent of the devices.

The Future Of Europe’s Mobile Market

The future of mobile devices in Europe is indeed bright. Anne Bouverot, who serves as the director general at GSMA notes that the mobile industry has the potential of bringing about recovery in Europe; however, it will need a policy that promotes investing in mobile broadband connectivity, supports innovation, and assists in building the confidence of customers in mobile services.

The number of mobile devices is expected to increase to approximately 6 billion by the year 2020. The incorporation of mobile technology in arenas such as commerce, education, government, health, and automotive makes Europe an ideal market for mobile companies to establish themselves.

Micromax’s Game Plan

Micromax has tasted a great deal of success in the Indian subcontinent and are now geared to spread their wings to Russia. Rahul Sharma, Co-Founder of Micromax Informatics told the media that their main goal is to enlarge their territory worldwide as an Indian hardware company. He emphasizes that they don’t want to be regarded just as an Indian company any longer. He tells the press that the firm has set foot in Sri Lanka and Bangladesh, and is presently in the top three firms in both markets.

He further explains that the firm has decided to launch their devices first in the Russian market, by December 2013. Sharma notes that if they are able to achieve good sales in Russia, they would be able to gain control of the European market as well.

The mobile market in Europe does seem fertile enough for Micromax to sow the seed of their smartphone devices. Although Micromax has achieved astounding success in the Indian subcontinent, only time will tell if they’ll be able to achieve the kind of success in Europe.

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