Lack of in-house R&D support has a promising Indian smartphone brand Micromax crumbling under pressure

Lack of in-house R&D support has a promising Indian smartphone brand Micromax crumbling under pressure

  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

 

Micromax’s ride so far has been quite bumpy, from being a contender of India’s leading smartphone brand a year ago to almost half of its market share wiped out today. The influx of new models and brands has made the smartphone market hyper- competitive. Amidst all the competition, Micromax failed to align its strategy to move from outsourcing model to rely more on home-grown ingenuity to build on its legacy. Micromax relied on outsourcing production to Chinese manufacturers which enable it to introduce good premium-configured phones at an affordable price. This USP quickly became irrelevant as even other manufacturers take up the China-route to offer more for lesser price and fill up the market with their new affordable offerings. To differentiate itself, Micromax did set-up an internal Software Design and Research and Development (R&D) team of about 80-90 people in Bangalore, which eventually fizzled out over the year due to lack of fresh funds and even led to some of the senior management to resign.




With global pricing challenges, lack of in-grown R&D support and added woes of tough competition from new brands in the market, Micromax has an uphill battle along with other Indian smartphone makers that is likely to last for some time.