I also have the same problem with my Asus X550L. Speakers work, internal microphone is useless-quiet. Alsamixer has microphone turned on and at 81%, no boost. Auto mute is disabled.
Using headphones with a built in microphone I get a good recording with plenty of volume.
Using Audio Recorder to record sounds played through my browsers does not work.
I also have the same problem with my Asus X550L. Speakers work, internal microphone is useless-quiet. Alsamixer has microphone turned on and at 81%, no boost. Auto mute is disabled.
Using headphones with a built in microphone I get a good recording with plenty of volume.
Using Audio Recorder to record sounds played through my browsers does not work.
Running Ubuntu 16.10
If I boot to Windows 7 it all works fine.