Experts expect that in the foreseeable future, the leader in the Indian smartphone market will change.
The forecast published by the consulting company Counterpoint Research contains a statement that, with a high degree of probability, shortly in the mentioned commercial space, the largest sales volumes will be demonstrated not by the Chinese manufacturer of mobile phones and many other devices Xiaomi, but its South Korean competitor Samsung Electronics. If this scenario is confirmed by reality, the leader in the Indian smartphone market will change for the first time since 2017.
The experts of the specified company predict that by the end of this year, Xiaomi’s share in the total structure of mobile phone shipments to the South Asian country will amount to 15%. This figure is 5% lower than last year’s scale of the Chinese brand’s presence in the mentioned structure. At the same time, experts expect Samsung’s share to be higher. However, the South Korean competitor is not the only manufacturer to challenge Xiaomi’s leadership in the Indian smartphone market. It is expected that in terms of the share in the structure of mobile phone shipments to India, the Chinese brand Vivo will demonstrate one of the best results.
Counterpoint Research predicts that Samsung will become the leader of the smartphone market in the South Asian country. The company expects that the share of this brand in the mentioned commercial space will be 18%. According to Counterpoint Research experts, Vivo will take the second place in the ranking of the most popular smartphone manufacturers in India. The share of this brand is expected to reach 17%.
India is currently the world’s second-largest smartphone market. Data from Counterpoint Research indicates that for four consecutive quarters, Samsung’s mobile phone shipments to the South Asian country have outstripped imports of similar Xiaomi devices.
Until 2017, the South Korean brand was the leader of the Indian smartphone market for six years. But in the last quarter of that year, Xiaomi took the first place in the list of companies whose mobile phones are in demand among consumers of the South Asian country.
For many years, Chinese manufacturers that offer customers more affordable financial term smartphones have been popular in India. The current geopolitical tensions, in which relations between Beijing and Washington are gradually deteriorating, create a situation of uncertainty for the specified makers of mobile phones. But in this case, there is another factor of influence.
The presence of Chinese companies in the Indian market also depends on the state of relations between New Delhi and Beijing.
After the deadly clash between China’s and India’s troops on the border of these countries in 2020, businesses faced bans. Against the background of the incident, New Delhi decided to block dozens of Chinese apps, including TikTok and WeChat. Indian authorities have also begun conducting raids against large companies from China operating in the local market. As part of these efforts, New Delhi has implemented enhanced controls on firms from the specified neighboring country. Tax penalties have become another measure of the impact on Chinese companies by the government of the South Asian state.
In April of this year, the Supreme Court of India rejected Xiaomi’s request for a refund of more than $676 million, which was seized in April 2022. Last year, the local financial crimes agency said that the Indian unit of the mentioned Chinese company was involved in making money transfers to foreign organizations, masking these transactions as royalty payments. Xiaomi has denied these accusations. The company also announced its intention to defend its interests in court.
Last year, the Indian offices of Xiaomi and Vivo were searched. The pretext for these actions was accusations of tax evasion and money laundering.
Xiaomi has already shut down its financial services business in India. The company has also removed its mobile payment and digital lending apps from local stores of relevant virtual products.
As we have reported earlier, Tata Plans to Build One of India’s Biggest iPhone Assembly Plants.