On July 9, 2018, the biggest mobile factory of Samsung in the world was launched mutually by South Korean president Moon Jae-in and Prime Minister Narendra Modi. The Noida unit will increase the South Korean firm’s output by 2 times to 120 Million units in the upcoming couple of years. This will assist ward off rivalry with a billion consumers, out of which 425 Million are smartphones and the rest are feature phones.
But if digital India is boosting global development, where are our domestic players? The fall of handset manufacturers of India has been as theatrical as their climb. Almost 300 Million handsets are traded in India. It is a market only second to China, having overhauled the U.S. last year. Still, in this $20-Billion sector, Indian firms find the user hanging up on them in favor of Chinese, Korean, or even Russian companies.
Not too long back, they were the serious challengers and price warriors. Feature-rich smartphones with long battery below Rs 7,000 appeared just what the market required. But the share of the once-rising local superstars such as Lava, Micromax, Intex, and Karbonn has declined considerably in the past 2 Years.
Micromax was even enticed by worldwide investors and its capitalization increased to Rs 21,000 Crore in 2014–2015. As per a venture investing tracker, VCCEdge, companies such as TA Associates, Sandstone Capital, Sequoia Capital, and others spent almost $90 Million in 2009–2010 in Micromax. In all, these companies spent $292 Million in handset makers of India, thorough 13 agreements since 2005.
On a related note, several mobile handset manufacturers have cut off jobs for a number of sales people or in-shop promoters in multi-brand shops. They have cut wages of many others to slash costs in an indignantly competitive market, claimed the media. These include companies such as Intex, Lava, Karbonn, and Micromax.