Xiaomi overtakes Samsung to become top smartphone vendor in India
26 January, 2018, 02:38 | Author: Lydia Fleming
South Korean tech giant Samsung, which had been on top for years, has now been dragged to the second position by a company that entered the market just three years ago. Xiaomi has outsold Samsung in the final quarter of 2017, to become India's largest smartphone brand.Xiaomi now leads the total number of shipments, close to 8.2 million units, which is 27% of total market share in Q4 2017.
The success in the Indian smartphone market points to a potential turnaround for Xiaomi, which struggled for the past few years as it searched for new areas of growth.
Vivo, Oppo and Lenovo rounded out the top five in the market. With a market share of 25 percent in the fourth quarter based on shipments, Xiaomi reportedly pipped Samsung which just falls behind with 23 percent market share in India.
Samsung's six-year era in India comes to an end.
The major research firms often reach different conclusions on device shipments because they use different tracking methods-and covering millions of unit sales from the outside of the company's they're reporting on can't be easy.
Xiaomi beats Samsung to take the pole position in Indian Smartphone market: Report
Another reason why Xiaomi was able to topple Samsung was because it allowed its Indian unit the freedom to run the business locally, Canalys posited. "Localisation in channel strategy, marketing and products have been evident in Xiaomi's Indian operations", he further added.
"Samsung's loss comes from its inability to transform its low-priced product portfolio", Rushabh Doshi, an analyst at the research firm, said in a report. All the other companies are occupying 34 percent of the smartphone market in India. In an official statement, the South Korean company says, "Samsung is India's number 1 smartphone company by a distance". In fact, as per IDC, Xiaomi sold as many smartphones as Samsung in Q3 2017, sharing the top spot of the Indian smartphone market. "Samsung is a full range player and leads the smartphone business across every segment of the India market in 2017", the spokesperson said. Despite its ability to offer better margins and funding to the offline channel, consumer demand for Samsung's devices has been weak. On that measure, Samsung continues to be the player to beat with 24 percent market share while Xiaomi ranking second at 19 percent.
There have been reports of Samsung going bullish on the online market where people prefer smartphones with better value for money. "We owe our undisputed leadership to the love and trust of millions of our consumers in the country".
Experts attributed Xiaomi's growth to its impressive product portfolio in the sub Rs. 15,000 smartphone segment which also forms the bulk of smartphone sales in the country. This coup came in the quarter that ended in December 2017.
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