New Delhi: In a significant turnaround, Chinese smartphone manufacturer Xiaomi has reclaimed the top spot in India’s competitive smartphone market, surpassing Samsung and Vivo in the June quarter.
According to market research firm Canalys, Xiaomi’s shipments grew by 24% annually, expanding its market share to 18% in the June quarter from 15% a year ago. Vivo secured the second position with a 4% annual growth, maintaining its 18% market share. In contrast, Samsung dropped to third place with an 8% decline in shipments, resulting in a 17% market share, Economic Times reported.
The quarter saw Chinese brands Realme and Oppo ranking fourth and fifth, respectively, with a a volume share of 12% and 11% respectively. The total mobile shipments in the June quarter grew by a marginal 1% to 36.4 million units, with Canalys forecasting a mid-single-digit increase in shipments during the upcoming festive season and for the full year.
“Muted shipment growth in the fiscal second quarter was due to elections, subdued seasonal demand, and heatwaves in several parts of the country,” the market research firm said, as per ET.
Despite the Indian government’s scrutiny, Chinese brands have maintained their popularity, with the cumulative market share — of Xiaomi, Vivo, Oppo, Realme, Transsion and Motorola — rebounding to over 75% in the June quarter from a low of 61% in the September quarter last year, as per market trackers.
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Xiaomi’s resurgence comes after a brief decline, with the company’s leadership attributing its success to a deep understanding of the Indian market and technological strength.
“While reclaiming the top spot in Indian smartphone market is an achievement, we are proud of, 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,” B. Muralikrishnan, president, Xiaomi India, said in a statement on social media platform X.
Trust is at the heart of everything we at @XiaomiIndia do. We’ve had an incredible quarter, and it wouldn’t have been possible without the unwavering support of our fans, partners, and media friends.
AdvertisementA heartfelt thank you to each of you for making this journey possible. Truly,… https://t.co/ysznAPO8hH pic.twitter.com/gBh1w4N4Jo
— Muralikrishnan B (@hawkeye) July 18, 2024
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Notably, Xiaomi India is currently under investigation by the Enforcement Directorate (ED) for alleged illegal remittances to third parties since its incorporation in 2014. The ED claims that Xiaomi illegally transferred funds to third parties under the guise of royalty payments to its Chinese parent company. Xiaomi India has denied any wrongdoing, and the case is currently in court, the ET report mentioned.
“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,” ET quoted Shilpi Jain, a research analyst at Counterpoint. Jain also noted that Xiaomi has increased margins for its offline dealers and offers an in-house financing scheme, which has further boosted consumer confidence in the brand.
