Why Micromax and Karbonn smartphones are cheaper ?

Micromax mobile literally took the Indian mobile market by storm by introducing the cheaper dual SIM mobiles. With heavy advertising and offering lot of cool features in their handsets at very low prices, the company has been able to gather a good brand recognition in India.They give out a lot of features,but they behave literally like a use and throw mobile because of their chip quality. Q7 came only for 5 months and the chip got burnt while charging.The quality of the keypad is also very poor the plastic looks cheap and the keys are very hard to press.
even their camera quality is not upto the standards. If there is a micromax phone with 8 MP then the quality of the picture taken from it will be comparable to the picture taken from a 5 MP smartphone from nokia or samsung .

Micromax is the 12th largest mobile manufacturing in the world. They aquire its position by releasing of good smartphones at cheap rate. Also, Karbonn is becoming more popular because of cheap rate smartphones.

Micromax and karbonn are not popular like Samsung or Nokia. To attract more peoples they release smartphones with less price. Hardware components of all smartphones like Samsung, Nokia, Micromax etc are cheaper. They increase cost by technology. A Rs.10,000 smartphone is manufactured at Rs.3000 or less. So Micromax and Karbonn smartphones are cheaper.

I think the resale value of the mobile is depending upon the rates. We all know that we will get more money if we returned nokia mobile when we want to buy a new one. But if we sell a micromax mobile we will not get that much amount. And the next thing is its technology. In my experience most of the Nokia mobiles will not cause any damage with a lite strike and in case of other mobiles a lite strike may destroy the entire mobile. The clarity of the camera is an another factor. In my opinion brands like Nokia, and Samsung are introducing high clarity mobile phones than other companys and this also a factor. The next thing is its reputation and those brands are in the market for a long time.

Dear member,

While surfing the Ask Experts section, I came through this thread and found no relevant answer to your question as nobody has got proper cs and points for their answers. So, let me try to answer your question.

Firstly, I may say that some companies possess a name and fame in the market like that of Nokia, Samsung, Sony etc which effect the prices of the products as being the great producers of amazing products.
The companies like Karbonn, Micromax etc are new to this market and they first need to increase their standard to build the full trust of the customers. Also, these companies use assembled parts i.e. the internal parts are not all of the particular company rater it is brought from the other sources like China etc which comparatively lower the prices of their products in the market. Moreover, when a product is launched, it first undergoes evaluation through different authorities which review it and then give the approval to launch this product at a given rate and seeing the assembled parts or any other defects in the system of the products of these companies, they give it a lower price category.

Brand name!!!
BMW (or Audi, etc) cars cost more than other brands like Maruti or Mahindra, why? Just because of the brand name. Same in mobile phones. The actual cost to build a smartphone like S3 is within 20,000 INR, but they sell it at a higher rate because its a very famous company, same with others. And companies like Micromax just import stuff from China, which is cheaper, and then sell it here in India.

But they make quad-core phones at just 15,000 INR. The chipset used in Micromax are very cheap, so they are able to minimize the cost of the phone. The actual cost of the Micromax or Karbonn phones might not even be 5,000 INR.

The final price of any product is depend on manufacturing and marketing cost. In the case of mobile handset cost of manufacturing is very less. Country's like China, Korea, Japan etc has very cheaper rates for electronic gadget manufacturing. We knows earlier China mobile handset done boom in Indian market. Indian government then blocked such handsets for security purpose. After this issue some mobile handset company established to catch up china mobile market. That's why Micromax and Karbonn smartphones are very cheaper than international brands.