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India's Micromax could expand into the US

Indian mobile manufacturer Micromax is reportedly considering following companies such as Xiaomi and HUAWEI by launching direct to consumer sales in the US.

Published onSeptember 29, 2015


Indian smartphone maker Micromax could launch into the US market according to people briefed on the company’s plans. Micromax has been considering whether to launch its Yu brand in the US next year but despite Micromax co-founder Rahul Sharma saying it had decided not to do so, it is believed the launch is still being considered.

[related_videos align=”left” type=”custom” videos=”643640,615697,642686,637478,635443,644371,643970″]Micromax is following companies such as Huawei and OnePlus from China who have taken the US smartphone market more seriously, as the power of carriers has dwindled with more companies selling directly to customers. As a result, established players such as Samsung and LG – who traditionally charge a high unsubsidised price for their flagships – are finding that the switch to an unsubsidised model has made their handsets too expensive for the average consumer.

Instead, companies such as US-based BLU Products and Nextbitwho is set to launch a cloud-first smartphone – along with China-based Xiaomi and others are all gambling on their cheaper phones being more attractive in the new unsubsidised marketplace.

A key problem for Micromax and all other companies hoping to break into the market is that Apple earns almost all the profit in the US smartphone market and the top five Android manufacturers control half the market share between them. With the US market potentially worth $80 billion this year, there’s plenty of scope for new manufacturers to enter the market.

Why are Chinese brands seen poorly in the US and what can they do about it?

Almost two thirds of all sales are still made through wireless carriers but with companies such as Apple, Motorola and HUAWEI all selling direct to consumers, new companies may yet be successful in the US. What do you think about Micromax launching its low cost smartphones in the US? Let us know your views in the comments below guys.

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