Apple, Samsung face threat from Indian & Chinese manufacturers.

 

Competition plays a key role in the advancement of any technology. Increase in the number of competitors increases the new trends in any field. Consider the field of mobiles in which Apple, Nokia, Samsung are the standard ones from a long time. But now there are many mobile brands like Xiaomi, Micromax, Lenovo, Huawei, ZTE, Coolpad, Karbonn, Lava and many others.

A report from BI Intelligence states that Global consumer internet and mobile companies needs to work with other recent mobile companies so as not to miss any opportunity of mobile growth phase in recent market conditions. The report also states that Indian and Chinese smartphone manufacturing companies are producing new models of mobile at a reasonable cost compared to same mobile model of premium brands.

The smartphone market in India is dominated by the major company Samsung and also local brands of Micromax and Karbonn. These two local companies together accounted for about 60% of smartphone market. The local brands are becoming more and more popular because they are able to grab the growing demand for big, bright screens and dual-sim facilities. They are now trying to produce 4G LTE smartphones having the same power and quality as standard devices like Apple and Samsung.

Apple is the well-known smartphone all over the world in sales as well as technology. Next comes the Samsung. Recent reports has given the statistics comparing the market of standard brands and local brands of smartphones. Some of the key points of that report are given here.

Local brands account to about two-fifths of China’s market and one-fourth of India’s smartphone market. Xiaomi has already sold four of top ten best Android devices and also one of the top five app stores in China. Xiaomi used a four point strategy in manufacturing and selling those four top models of smartphone.

The top five manufacturers in China and top two in India together account to 65 million smartphones market for every four months. This figure of  local brands is more compared to even sales of Apple. Now it is concentrating on exceeding the sales of Samsung.

The main feature of local brand mobile manufacturers is they are running their own app store, mobile operating systems and mobile services which plays a major role in their success. They also provide some pre-loaded apps on the mobile.

The main reason for users showing interest towards local brands is nothing but the cost of mobile. So the local manufacturers in India and China are producing phones at a cost less than standard mobiles but with same features. An example of cost comparision is the iPhone 5 of Apple costs nearly four times of Micromax mobile.

Local brands of mobile are now concentrating to grow their branches world-wide in search of new opportunities. Micromax is in Nepal, Bangladesh and Sri Lanka. Xiaomi is in Malaysia and Brazil. Huawei is already in US.

All these factors indicate that local brands are slowly gaining a prominent position in the market of mobile phones. If it is continued all the major mobile companies has to go on agreement with the local brands to influence their sales in respective countries. This is already happened in the case of BlackBerry which signed a deal with Micromax to take its BBM  messaging service for Android into India.