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Homegrown firms enter budget smartphone market as memory chip prices rise

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Homegrown firms enter budget smartphone market as memory chip prices rise

India's budget smartphone market is opening up for local brands as global companies reduce their presence. Rising memory chip prices have significantly impacted entry-level smartphone production costs. Homegrown companies Ai+ and Lava are gaining traction in this competitive segment. Micromax plans to re-enter the smartphone market by evaluating various strategies. Brands aim to leverage the government's financial incentives under the Mobile Phone Manufacturing Scheme to succeed.

Kolkata: India's budget smartphone market is set for a fresh wave of homegrown challengers as a sharp surge in memory chip prices forced global players to pare their presence in the sub-Rs 20,000 segment, creating an opening for the local companies. After wearable brands Mivi and Boltt entered the sub-Rs 15,000 smartphone market through Flipkart, rivals Noise, boAt and GoBoult are also exploring entry into the category and holding discussions with e-commerce marketplaces, three senior industry executives said. The renewed interest follows early traction for brands such as Ai+ and Lava, while legacy players Karbonn and Micromax are also looking to capitalise on the opportunity. Advt

Karbonn is planning a festive-season relaunch, while Micromax is evaluating a return to smartphones, encouraged in part by the government's recent announcement of financial incentives under the Mobile Phone Manufacturing Scheme (MPMS), the executives said. The new wave of Indian brands is betting on an online-first strategy to keep distribution and operating costs low, allowing them to price devices competitively against Chinese manufacturers and Samsung at a time when affordability is under pressure. "Being an Indian brand, there are no royalty and profit pressures from overseas headquarters.


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