Chinese Phones Bulldoze Indian Brands, Cut Their Market Share Down to 1%: Report

In terms of value, Chinese phones now make up about 65% of the market.

Tech News
2 min read
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Chinese smartphone manufacturers are quickly dominating markets in India and abroad, data suggests.

The market share, in volume, of Indian smartphone brands fell to 1 percent in the last six years, while that of Chinese brands jumped to 99 percent, Business Standard reported, citing research firm Techarc.

For reference, in 2015 Indian phones held 68 percent of the market share, while Chinese brands held just 32 percent. In terms of value, Chinese phones now make up about 65 percent of the market.

But it's not just Indian manufacturers, like Lava and Micromax, who are feeling the heat.


Samsung Feels the Pinch

In the span of a year, Samsung's share in the Indian smartphone market has dropped from 24 percent to 17 percent, according to Counterpoint data.

This comes against the backdrop of a management reshuffle, after Samsung heir Lee Jae Yong was sentenced to two years in prison last year, following a bribery scandal.

The Korean company also faces stiff competition from Apple, which reportedly leads the premium segment in India with a 45 percent share.

Samsung, which dominates the mid-to-upper tier segment, has the largest share in the Indian market after Xiaomi. However, brands like Realme and OnePlus are catching up rapidly with phenomenal sales figures.

Globally, at least, Samsung seems to be holding on to its market share of about 20 percent.


No Real Alternatives

Chinese brands have managed to flood the market with high-spec smartphones at low prices by incurring huge losses. Oppo, for example, made losses of over Rs 2000 crore in FY20, while Vivo posted over Rs 300 crore in losses.

The pandemic, and the subsequent shift to online shopping, may also have helped these companies, since they market and sell a large portion of their phones online.

Due to geopolitical tensions between India and China, and the government's appeal to purchase Indian products, Chinese phones have been sporadically boycotted in the country. However, this hasn't made much of a difference in the long run.

According to the Smartphone Trends Report by Techarc, even if some users temporarily boycott Chinese brands, "consumers do not find alternatives of a substantial scale which could fill the void."

(With inputs from Business Standard)

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Topics:  Xiaomi   Make in India   Apple 

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