Bad manta for her Xiaomi, as it loses the Indian market to Samsung, which is one of the largest Smartphone markets in the world
The two largest smartphone markets in the world are China and India, with Xiaomi dominating the last five years in sales in the Indian market. This is mainly due to the successful recipe of beautifully designed devices, which come with decent specifications and are sold at lower prices than the competition.
However, things seem to be changing in India, as anti-Chinese sentiment among the country's citizens is at an all-time high, while at the same time, almost all Indian citizens have more disposable income than in previous years.
According to her data Counterpoint Research, we can see that Xiaomi's market share in the smartphone market in India has plummeted, and 2022 marked the end of a five-year streak for the first time for Xiaomi, which dominated all quarters of the year – except one, and as expectedly, the losses recorded by Xiaomi translate into an immediate gain for Samsung.
The chart above shows the “fight” between Samsung and Xiaomi for the largest market share in India in recent years. As you can see, Xiaomi has dominated almost every quarter of the last five years, with Samsung losing a serious percentage of share from Q2 2018 through Q1 2020. In fact, in the first quarter of 2021, Samsung fell to an all-time low. At that time Samsung did not have a serious presence in the Indian market in mid-range and low-budget devices, as a result of which Xiaomi literally swept the country's market.
But since 2022, Xiaomi's market share has plummeted. The reasons for this decline were mainly politically motivated, as the Indian government launched an all-out attack on China following the heated incidents on the border between the two countries. This anti-Chinese public sentiment combined with the public's willingness to spend more money on new smartphones contributed to this fall of Xiaomi.
Looking to 2023, the chart above strongly suggests that Samsung will continue to gain market share in the country, while Xiaomi will continue to decline.
This chart should be very worrying for Xiaomi, as it is now becoming clear that the usual strategy of launching lots of cheap Smartphones, is not going to work in India anymore.
As the per capita income of Indians continues to improve, Xiaomi will have to start making phones that will appeal to young buyers who want a little more quality, even if it means spending more money. If Xiaomi does not make this change in its strategy, the Indian market will be permanently in the hands of Samsung or even Apple.
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