The Rise and Fall of Karbonn

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Karbonn mobiles were one of the India’s leading mobile device manufacturer company. But, due to lack of innovation & chinese smartphone competition they fall. Let’s begin: The Rise and Fall of Karbonn.

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Karbonn Rise

Karbonn history

Karbonn was founded in the year 2009 and main office of Karbonn is in New Delhi. Apart from making mobile devices, Karbonn also makes mobile accessories and tablets.

Karbonn is a joint venture of United Telelinks Ltd, Jaina marketing Pvt.Ltd and Associated, and also they alined with Indian leading telecom company Airtel, Vodafone, Idea, and Jio.

2009: Karbonn entered CDMA segment with the launch of 5 new phones in the Indian market, which price range was Rs. 2,000 to Rs. 6,000. In this year, company had to aim to capture market capital up to 7%-10% in the mobile phone segment. Till the end of the December 2009, Karbonn sold 25,000 phones.

Pradeep Jain (Managing Director ) said: ” The company growth has fattest in the Mobile segment and Karboon becomes brand in the Indian market in a short span of 6 months“. As a company committed to bringing the latest devices at reasonable prices.

Boost in sales!

2010-11: Karbonn was growing fast because of there reasonable prices and their sales and services were also better even in rural areas. In this year company sales close to 2.15 million phones and the company revenue was 1,500 crore.

They released there new smartphone Karbonn K406 (GSM+GSM), in affordable Priced at Rs. 2,590 which was famous for music. This phone came under the list of low priced dual SIM phones in the Indian Market.It featured:

  • VGA camera and video player.
  • Hi-Fi sounds feature.
  • MP3 and MIDI audio formats Supports.
  • Up to 8GB MicroSD support.
  • Standby time 400 hours.

2012: Karbonn launched Android-based 3G tablets. One was the fifth tablet to hit the markets before the Diwali.

These is the beginning of new innovation, Our aim is to make a new revolution in tablets market with 3G technology.” — Pradeep Jain (2012)

The company sold six million smartphones and similarly company revenue saw an increment of Rs 1,600 crore. Jain told first time they were aiming to hit a revenue 2,800 crore this year.

2013-2014: Pradeep Jain said, Our target is 4000 crore to 5000 crores. if you see our past, our growth double than the previous year. The way the company growing in the market, you can see exponential growth in smartphones. The company spending 8-9 percent revenue in R&D.

Karbonn Changed Strategy

In 2013, Karbonn Mobiles partnered with Eros International Media, and release the Kochadaiyann movie. Therefore Karbonn created 500,000 smartphones branding with kochadaiyaan.

In 2014, Microsoft declared, Karbonn is one their hardware partners beacause Karbonn was manufacturing Windows based smartphones.

2015: Due to 4G led Strategy the revenue of the company increased by 40%. Market share of Karbonn raise to 4.8% at the end of March 2015 and till the end of September was reach 9.6%. In this year Karbonn spends 15-20% to private equity players. Hasija Said “Now we are Debt Free“.

In these year company aimed to clock Rs 6,500 crore in revenue until the ending of March 2106, which is up from 4,700 crores in the previous year.

Start of Downfall

2017: Karbonn got ranked 350th out of the total 1000 Indian brands, the reason for falls down the ranking of Karbonn is increased in sales of Huawei, xiaomi, Oppo and Vivo mobile phones.

Airtel decided to launch two new Android 4G compatible feature smartphone in partnership with Karbonn Mobiles. This partnerships were the part of Airtel’s ‘Mera Pehla Smartphone‘, the aimed was to every india buy 4G smartphone and become digitaly smart.

A1 Indian 4G smartphone,which effective price was INR 1,799. A41 Power 4G Smartphone, which effective price was INR 1,849. In the first month of launching fully phone was sold out.

These mobile phones had full access to play store application WhatsApp, Facebook, Youtube, along with both phones come with pre-installed MyAirtel App, Airtel Tv, and Wynk Music.

2018 : (Arvind R Vohra)Promotors of handset maker Karbonn Mobile and also he has a major shareholder of Gionne (Chinese Smartphone Company). Recently they bought a long-term licensing deal. Expected deal amount to be Rs 200 – 250 crore including 125 crores to be paid for brand licensing. September 2018, Gionee mobiles were sold off to Karbonn Mobiles, with all the licensing of Gionee. According to resources Indian partnered has 10 years rights to the used Gionee brand.

Recently, Karbonn Launched Karbonn Platinum P9 mobile features:

  • 13.84 cm display with a screen resolution of (480*960 ).
  • Android v8.1(Oreo).
  • 2GB RAM, 16 GB ROM(expand upto64GB).
  • 2500 mAh battery.
  • 8MP+2MP Camera.
  • Sensor: Light, Proximity, Accelerometerternd Fingerprint.

Why Karbonn Fall?

The reason for falling down of Karbonn is because they stopped innovating and releasing budget phones in the competitive smartphone era.

During the whole lifetime, Karbonn launched about 245+ feature phones and 110+ smartphones. Surely, they created a lot of buzz & gained some respect in mobile market.

Recommended: The Rise and Fall of Micromax

Jay Patel

Jay is a Guest Blogger of PinProgram.

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