The 2nd biggest handset maker in India, Intex Technologies, claimed that sales sank 30% in 2016–2017 post the disturbance caused on account of demonetization and due to the entrance of Reliance Jio Infocomm. “Fall in income was owing to unexpected entrance of Reliance Jio moving the industry from 3G/2G to 4G,” Intex claimed to the media in a regulatory conference. “The accessibility of new 4G smartphones models took some period. Demonetization also affected trades between November and March since our huge trades are in the rural sectors.”
Intex reported income of Rs 4,364.08 Crore in the fiscal concluded on March 2017 in comparison with Rs 6,233.42 Crore in 2016, while net profit dropped to Rs 127.3 Crore by17%. The firm attributed the profits reduction to new hires, inferior sales, and other operating cost. Income from other segments including mobiles will enhance this fiscal year on the rear of the digital services and user durables business, a spokesperson of Intex claimed to the media.
“The profit margin has elevated by around 18%. We were the initial local handset company to fully drain our 3G inventory while increasing our range of 4G-VoLTE handsets. We are now in discussions with various telecom companies to provide our series of affordable handsets that we think will draw 500 Million feature handset users,” he claimed. The spokesperson stated that the involvement of the consumer durables business of the company has grew from 24% to 36% in the last fiscal year and is anticipated to go almost 50%. Intex surpassed Micromax and Videocon in the business of LED TV to turn out to be the No. 1 brand in India with a 4% share of market, the spokesperson claimed, mentioning a report.
Other smartphone makers of India are expected to report a knock in their monetary performance in 2016–2017 owing to the unforeseen swap to 4G when they report their outcomes with the Registrar of Companies, claimed the industry experts. Indian smartphone makers also lost out to the violent investing by Chinese competitors, as per a market research company. Chinese companies controlled over 50% of the smartphone market in India as of September 2017, in comparison with 33% a year ago.