Samsung Falls To Third Place In Indian Smartphone Market, Chinese Brands See A Surge

Samsung has plummeted to third place in market volume by 2023. This trend is driven by increased competition from Chinese manufacturers such as Vivo and Xiaomi, as well as growing consumer frustration with Samsung's non-premium offerings.

In the October-December quarter of 2022, Samsung surpassed Xiaomi to take the lead in India's smartphone market with a 20 per cent share. This achievement was fuelled by the company's strategic focus on developing its offline retail footprint and using its A series phones priced between Rs 30,000 and Rs 45,000. However, Samsung's market share has since declined dramatically, indicating the impact of the competition.

According to IDC data, Samsung's market share fell to 12.9 per cent in the April-June quarter of 2023, down from 15.7 per cent in the same time the year before. According to Counterpoint and Canalys research, Samsung's market share was between 17 per cent and 18 per cent throughout this time period, trailing only Xiaomi and Vivo, all of which held approximately 19 per cent. The reduction is attributed to Samsung's underperformance in the sub-Rs 30,000 market, where it saw a significant build-up of inventory.

Chinese smartphone makers have made major inroads in India, notably in the budget and mid-range segments, where Samsung has faced increased competition. Consumers have responded positively to these firms' emphasis on design factors such as colour and finish, which has influenced Samsung's success. The sector below Rs 20,000, which accounts for 44 per cent of the market, and the entry-premium category between Rs 20,000 and Rs 35,000, which accounts for 30 per cent, have been especially competitive.

Samsung's latest efforts include a shift to online channels and fluctuating pricing offers, which have resulted in retailer unhappiness owing to margin losses and pricing discrepancies. To solve these difficulties and regain market share, Samsung may need to re-evaluate its strategy, possibly focusing on novel product lines or sub-brands to compete in the changing market.