Chinese brands lose grip on Indian smartphone market
What's the story
China's leading smartphone manufacturers have witnessed a major decline in the Indian market during the April-June quarter. According to a report by Counterpoint Research, their collective market share has fallen to its lowest since 2020. The drop comes as rising prices have affected demand in the budget segment, resulting in a 10% year-on-year (YoY) decline in overall smartphone shipments, the steepest fall for this period in six years.
Market impact
Chinese brands most affected
The report highlights that Chinese brands such as OPPO, Vivo, Xiaomi, Realme, OnePlus, iQOO, and POCO have been particularly affected.
These companies mainly rely on affordable smartphones for their sales.
As consumers are delaying purchases due to price hikes, many manufacturers have expanded their 4G portfolios to target value-conscious buyers.
Despite this move, 5G remains the long-term growth driver for these brands.
Future forecast
Counterpoint Research predicts continued pressure
Counterpoint Research predicts that the pressure on India's smartphone market will continue through 2026.
The firm expects a 13% decline in annual smartphone shipments as memory prices remain high.
These prices have nearly quadrupled since September 2025, making devices more expensive and prompting consumers to delay upgrades.
"Affordability will remain the industry's biggest challenge," said Tarun Pathak, Research Director at Counterpoint Research.
Pricing strategy
Smartphone prices increase by 15%
Counterpoint Research's Monthly India Smartphone Tracker shows that smartphone makers have hiked prices multiple times this year.
This is due to the rising costs of memory and other components, resulting in an average price increase of around 15% by the end of Q2.
The impact has been most visible in the budget segment, with shipments of smartphones priced under ₹15,000 plummeting 45% year-on-year.
Market share
Entry and mid-range segments impacted
Chinese brands, which dominate the entry- and mid-range segments, have seen their combined market share drop to its lowest for a second calendar quarter since 2020.
This is largely due to the increased component costs pushing brands to raise prices and macroeconomic headwinds further dampening replacement demand.
Despite these challenges, the premium end of the market has remained relatively resilient with financing schemes helping lower upfront costs.
Brand performance
Vivo retains top spot, followed by OPPO and Xiaomi
Despite the challenges in its budget portfolio, Vivo has retained the top spot with an 18% market share.
Samsung was the only major smartphone brand to post shipment growth during this period, rising 2% YoY on strong demand for its Galaxy A and flagship S series devices.
OPPO held onto third place with a 14% market share while Xiaomi (including POCO) and realme reported shipment declines due to repeated price hikes affecting demand in entry- and mid-range segments.