The Rise and Fall of Micromax
Micromax started as an embedded software design firm in 1998. On 29th of March 2000, Micromax was incorporated as an Indian IT company in the domain of the embedded device. Today, we will see the rise and fall of Micromax.
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2000: Started by selling computers, software courses and fixed wireless public phones (PCOs).
Micromax was as a small software company founded by Rahul Sharma, Sumeet Arora, Rajesh Agarwal and Vikas Jain. It sold computers and also provided courses. Later it manufactured wireless public phones (PCOs). The co-founder Rahul Sharma decided to go for manufacturing mobile phones. When he saw a public phone being powered by truck batteries, he went back and told his friends (co-founders) that they should tap into the mobile phone market. From 2000 to 2008, it excelled in wireless public phones field. This company developed with time and witnessed exponential growth when it entered into the mobile market.
2008: Began selling mobile phones. Micromax made an entry into mobile market with their first phone Micromax X1i.
2010: One of the largest mobile handset company with a low-cost feature phone segment. The debut of fun book series in Tablet computers. Started to sell products in Sri Lanka in May. In a distribution agreement with M/s Infinity Lanka Holdings Pvt Ltd.
In just 2 years, Micromax improved themselves in their separate niches by introducing:
- Long battery phones.
- Dual sim phones.
- Qwerty keypads.
Just in two years, it became the 10th mobile company in the world. Using its innovative methodologies, and consumer need-based approach, they dominated the mobile market. They soon realized it necessary to invest in many fields.
March 17, 2012: Micromax announced a change in their punch (logo), developed through extensive crowd sourcing. Eric Atkins from the US was announced as the winner.
Were Full Form here!
- Hugh Jackman is the brand ambassador and appeared in a commercial for Canvas Turbo A250 and other Canvas series.
- Ericsson sued Micromax for infringement of their eight patents registered in India.
- Micromax Moulsari Avenue metro station opened.
2014: Micromax became Tenth largest smartphone vendor in the world. By overtaking Samsung with respect to sales in India (25% sales in the Indian market). Micromax became the first Indian company to sell mobiles in Russia. 8 core flagship smartphone and Canvas Knight A350 were launched for the Russian market. Two Windows phones, Canvas Win W092, and W121 were launched. On 18 DEC 2014, The Yu Televentures, a joint venture between Cyanogen Inc and Micromax informatics was created.
2014: Sales of OnePlus One blocked in India by the Delhi High Court. In December, OnePlus was restrained from shipping (selling) OnePlus smartphones in India. Micromax complained that OnePlus had infringed on Micromax’s exclusive rights by launching OnePlus mobiles running cyanogen OS. Micromax had signed a three year exclusive licensing deal with Cyanogen for South Asia region in mid-2014 while OnePlus had a non-exclusive global licensing deal with Cyanogen.
Full Report: Tech Economic Times
2015: A Reddit user found adware installing itself on their Micromax A093 Canvas Fire Telephone. On January, Yu Yureka first phone model launched with Cyanogen OS and was a legal rebranding of Cool pad F2. In April, Micromax looked for strategic investors to diversify a portfolio. On July 29, 2015, Yufit fitness band launched hinting the company’s interest in wearable technologies.
September 2, 2015: Micromax to collaborate with MediaTek to provide mid ranged budget smartphones. Soon, Micromax Flagship Canvas Knight 2 launched. First Micromax phone to support 4G. On January 2016, Ajay Sharma returned as head of sales and soon became #3 handset player in Russia.
March 2016: Micromax CEO Vineet Taneja resigns.
“Vineet has moved on to pursue other interests. We would like to thank him for his contribution and wish him good luck.” — Micromax
2016 Quick Events
- Partnered with digital payments company TranServ and Visa.
- Canvas Unite 4 launched. Cyanogen OS replaced with Indus OS 2.0.
- 3G smartphone demand declining. Micromax to launch only 4G smartphones.
- Finally, decided to revive Yu brand to take on Chinese smartphone makers.
- Micromax ready to invest 600 crores to transform into consumer electronics.
- Joined forces with BSNL to launch geophone competitors.
Micromax sales in the mobile market fall by up to 30% due to demonetization. — Economic Times
October 2017: Micromax launched Bharat 1 at Rs. 2200. in partnership with BSNL.
January 2018: Micromax needed to take global patent license from Ericsson. Micromax paid royalties to Swedish company Ericsson on every phone it sells that uses 2G and 3G technology. Micromax withdraws its a complaint against unfair practices of Ericsson to obtain royalties.
Source: Economic Times
2018 Quick Events:
- Enters into air cooler segment.
- Invested in the One Labs- develops chatbots (AI).
- Micromax along with Lava, Intex and others to lay off in-shop promoters and slashed salaries to cut costs in the bitterly competitive market.
- Consumer electronics company Micromax plans to go electric. Keen on entering E-two and three-wheeler categories. Prototypes being tested.
- Bharat Go, low ranged Micromax product with 4G Volte announced to be launched. It has 1 GB ram and supports Android Oreo (Go version).
November 2, 2018: Micromax Informatics Ltd launched its first Google-certified Android TV.
Why Sudden Downfall?
Unfortunately, due to intense competition from the Chinese companies, their mobile market sales went down but their products in consumer electronics and home appliances kept them from the downfall. Also, the revival of Yu and the One Plus series still have a great impact on the mobile market. Micromax’s multi-brand strategy helps them to regulate the production of low and mid-range smartphones and the flagship phones thus, adding benefit in market competition. Micromax continues to pursue their vision for brighter tomorrow.