Why Chinese smartphone brands are losing market share in India
What's the story
India's smartphone market is witnessing a contraction, with Chinese brands taking the biggest hit. The latest data from IDC shows that smartphone shipments in India fell by 11.1% year-on-year to 33.2 million units in the June quarter. This decline is largely due to rising memory costs, which have increased device prices and impacted consumer affordability. Most Chinese brands have reported double-digit declines in their shipments during this period.
Market resilience
Samsung and Apple buck the trend
Despite the overall market contraction, tech giants Samsung and Apple have managed to keep their shipments relatively stable.
This has helped them gain a larger share in an Indian smartphone market that is increasingly valuing scale, supply-chain strength, and premium portfolios.
The IDC data shows that India's first-half smartphone shipments fell by 7.9% to 64.2 million units, the lowest in five years, but the market value grew by 3.6%.
Brand performance
Vivo retains top spot, but other Chinese brands face challenges
Vivo has retained its position as India's largest smartphone brand, even though its shipments fell by 13.9% in Q2.
This has reduced its market share from 19% a year ago to 18.4% now.
Other Chinese brands such as OPPO, Xiaomi, and Realme also witnessed declines in their respective shipments during this quarter.
Market shift
Gains for Samsung and Apple
In contrast to the decline seen by Chinese brands, Samsung and Apple have managed to increase their market shares.
Samsung's shipments grew by 0.4%, increasing its share from 14.5% to 16.4%.
Meanwhile, Apple's shipments also grew by a marginal 0.7%, taking its share up from 7.5% last year to 8.5% now, despite supply constraints on iPhone models in Q1 and Q2 this year.
Brand resilience
Motorola and OnePlus show relative resilience
Among other major brands, Motorola and OnePlus have shown relative resilience with their shipments declining by a modest 8.9% and 2.5%, respectively.
This is in stark contrast to the double-digit declines witnessed by most Chinese brands during this period.
The performance of these two companies highlights a shift in consumer preferences toward more established players.
Market impact
Entry-level segment takes a massive hit
The impact of rising costs is most visible in the entry-level smartphone segment.
Shipments of smartphones priced below $100 fell by a staggering 74.3% year-on-year in Q2, bringing down the segment's share to just 4.5% from 15.6%.
Meanwhile, consumers who have been priced out of entry-level devices are moving up the price ladder instead of opting for more expensive versions of the same devices, further impacting market dynamics.
Price increase
Average selling prices reach record high
The overall average selling price of smartphones in India rose by 14.4% year-on-year to a record $315 in Q2. This increase comes as brands and retailers have reduced their promotional activities, leaving consumers with fewer options to offset the higher device costs.