Remember that year, when after Nokia, someone created a stir in the mobile market, and that name was Micromax. We all saw how an Indian company left behind a giant like Samsung, LG, and Sony. Today, there is no one to take its name. The question is what exactly happened to Micromax? Did this happen only because of the arrival of Chinese companies (Vivo, Oppo, and Xiaomi)? The reality is much deeper than this, so let’s find everything in detail what went wrong.
The Rise of Micromax
I can remember that period very well, when the era of keypad phones was ending and the world of Android was beginning. At that time, Samsung, LG, Sony, and HTC smartphones used to be so expensive that they were out of the reach of the common man. Exactly at this place Micromax made its place. Their ‘Canvas’ series created a buzz in the market. Canvas A1, Nitro, Knight… these were not just the names of phones, but were the first smartphones of the middle class of India. Akshay Kumar’s advertisement and the tag of “Indian” brand was creating trust in it and this brand now also giving very close competition to brands like Nokia, Lava, and Karbonn in keypad mobile (featured phone) market too.
But here is the thing that most people do not know. Micromax’s model was as simple as it was delicate. It was an OEM (Original Equipment Manufacturer). Simply put, it bought pre-made phones from China, put its logo on them and sold them in India. This was like importing a $100 product from China and Selling in India at $170. This was a great short-term business model, but it also became its biggest weakness.
The Fall of Micromax
Micromax never invested in its own research and development (R&D). It thought that just importing cheap goods from China and selling them would do the job. But when Chinese companies—like Xiaomi, Vivo, Oppo—entered India directly, this model failed completely.
The Chinese government saw a big potential related to smartphones in India, and they decided to enter in India. So in 2016, Chinese mobile brands benefited from China’s export tax rebate policies, which reduced their domestic tax burden when selling abroad, including in India.
Chinese companies had two big advantages…
- First, they had their own manufacturing and technical capabilities, which allowed them to make their phones better and cheaper.
- Second, the export subsidy from the Chinese government reduced their prices even further.
While Micromax had to sell a phone for Rs 10,000, Xiaomi was offering a phone with better specifications for Rs 7,000-8,000. Indian consumers, who are always looking for ‘value for money’, started to change their minds rapidly.
In addition to that, the new Chinese mobile brands also offer exclusive features in their smartphones like best selfie camera form this brand, exclusive chip, best rear camera from this brand, exclusive Super AMOLED display etc. Because there was a tie-up… the same feature comes in Mircomax phone after 6 months or 1 years and nobody now interested to pay for an outdated feature.
Final Words
Micromax’s biggest mistake was trying to capitalise on the sentiment of ‘patriotism’ when its entire business model was dependent on China. When it returned in 2020 with the slogan ‘Desh ka Phone’ ‘Desh ki Company’ and its Ceo and Founder Rahul Sharma launched Micromax in 1b, in 2b, and in Note 4G smartphones, people soon discovered that these phones were also made from Chinese parts and were only assembled in India. This completely broke customer trust again. Software updates were not available, parts were not available at service centres, there was no news about 5G mobile and thus the company’s promises proved to be hollow.
Today, hardly anyone remembers a new smartphone on hearing the name of Micromax. The company has now almost left the mobile business and has embarked on new paths. Their efforts are now in areas like electric vehicles (EV), AI hardware, and content apps. Keeping ‘Make in India’ in mind, their manufacturing company Bhagwati has acquired Vivo’s factory in Greater Noida, where now mobile phones as well as automotive parts are being made.
Recently, in 2024, they have formed a new joint venture ‘MiPhi’ which is now designing fabless chips. Their first product Storm 1100X, an external SSD, was also launched in February 2025. They no longer have any strength in the smartphone market, but their presence in the world of tech and manufacturing is still there.
Ultimately, Micromax’s downfall was not just due to the influx of Chinese companies. It was the defeat of a company that, instead of investing in its product and developing new technology, chose the easy way out. It did not try to live up to customer expectations. Today’s mobile market is not just a battle of price, but of innovation and trust. Micromax lost this battle and failed, and it became a lesson that without a strong foundation, no building can last long.
