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India’s Micromax May Jump Into U.S. Smartphone Market

Shifts in the way wireless carriers sell smartphones are luring an array of new lower-priced phone makers into the U.S., with India’s Micromax Infomatics expected to be one of the next brands to jump into the market, according to people briefed on the plan.

Micromax, a 15-year-old privately-held electronics maker in India that started selling phones in 2008, was recently considering whether to launch its premium smartphone brand called Yu in the U.S. sometime next year, the people said. Micromax co-founder Rahul Sharma, who runs the Yu subsidiary, said the company had not decided to do so.

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Around two thirds of all phone sales in the U.S. still go through wireless carriers, according to some analysts. But the new entrants to the market believe that consumers will increasingly be comfortable buying from manufacturers or through Amazon.com. Apple’s recent announcement that it will sell phones with a monthly plan directly to customers could make Android buyers more comfortable with the idea too. Motorola and Huawei are also offering phones directly to U.S. customers, available in monthly installments.

Fazal Majid commented on this article.
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