New Delhi: China’s Xiaomi regained the top spot in India’s smartphone industry after six quarters, outpacing Korea’s Samsung, which fell to the third position behind Vivo in the June quarter. This marks a significant comeback for Chinese brands in this highly competitive market.
Xiaomi’s Rise to the Top
Xiaomi’s shipments grew by 24% annually, increasing its market share to 18% in the June quarter from 15% a year ago, according to data from market researcher Canalys. Vivo, now in second place, grew 4% annually and maintained an 18% market share. Meanwhile, Samsung, now third, saw an 8% drop in shipments, with a 17% volume share. Chinese brands Realme and Oppo ranked fourth and fifth with a 12% and 11% volume share, respectively.
Market Trends and Predictions
According to Canalys, total mobile shipments in the June quarter grew by a modest 1% from a year earlier, reaching 36.4 million units. The research firm predicts a mid-single-digit increase in shipments during the upcoming festive season and for the full year. The muted shipment growth in the second fiscal quarter was due to elections, subdued seasonal demand, and heatwaves in several parts of the country.
Inventory and Sales Strategies
“Inventory levels remained high, with some vendors launching new devices in higher price segments during the quarter, while others focused on reducing existing stocks to optimise inventory ahead of the festival season,” said Canalys.
Sanyam Chaurasia, a senior analyst at Canalys, noted that top mass-market brands expanded their mid-high-end portfolios in the June quarter and “shall use early monsoon sales to clear inventory, making space for new models ahead of the festive season.”
Xiaomi’s Resilience Amid Scrutiny
Xiaomi’s return to the top and the strong performance of other Chinese brands highlight their popularity despite ongoing scrutiny from the Indian government. For instance, Xiaomi India is being investigated by the Enforcement Directorate (ED) for alleged illegal money transfers to third parties. Xiaomi India has denied any wrongdoing, and the matter is in court.
“Xiaomi seems to have emerged clear of the impact of their past troubles with the ED and senior management exits. Their India leadership is steering operations stably. They have taken a calculated approach to offline channel expansion, starting in 2023,” said Shilpi Jain, a research analyst at Counterpoint. “We have also heard that the company has increased margins for its offline dealers. Its in-house financing scheme has further instilled confidence in consumers,” she added.
Leadership and Strategy
“Reclaiming the top spot in the Indian smartphone market is an achievement we are proud of, but our priorities go beyond rankings. Our deep understanding of India, coupled with our inherent technological strength, has allowed us to become an integral part of the country’s social fabric,” said B. Muralikrishnan, president of Xiaomi India, in a post on social messaging platform X.
Chinese Brands’ Market Share
The four Chinese players in the top five collectively held a 59% market share in the June quarter, up from 55% a year earlier. The cumulative market share of Chinese smartphone brands – Xiaomi, Vivo, Oppo, Realme, Transsion, Motorola – rebounded to over 75% in the June quarter, from a low of 61% in the September quarter last year, according to market trackers.
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