Samsung or Xiaomi? It's a two-horse race for India's smartphone market

India's booming smartphone market is turning into a two-horse race between Samsung and Xiaomi.The world's bigg...

Posted: Jul 20, 2018 3:52 PM
Updated: Jul 20, 2018 3:52 PM

India's booming smartphone market is turning into a two-horse race between Samsung and Xiaomi.

The world's biggest smartphone maker and its fast-growing Chinese rival now account for 60% of the country's sales, according to a new report by research firm Canalys.

Samsung and Xiaomi each sold nearly 10 million smartphones in India in the three months to June 30, a new record for both companies, Canalys said.

The new sales estimates reflect a big comeback for Samsung, which dominated the Indian market for six years but was overtaken by Xiaomi at the end of 2017.

The Chinese smartphone maker, whose cheaper devices have struck a chord with India's price-conscious consumers, widened its lead in the quarter to March 31. It also tripled its manufacturing base in the country by adding four new smartphone factories.

Related: How Xiaomi took India's smartphone market by storm

But Samsung's sales grew by 47% in the June quarter compared with the same period a year ago, its best rate of growth since the last quarter of 2015.

"Samsung is hitting back," said Canalys analyst TuanAhn Nguyen. "It has launched devices pitted directly against Xiaomi's capabilities."

Making more phones in India

The South Korean electronics firm is also responding by beefing up its own capacity to make phones in India. It opened what it claims is the "world's largest mobile factory" earlier this month on the outskirts of New Delhi.

Spanning 32 acres, the factory will allow Samsung to nearly double the number of smartphones it makes in India every year from 68 million to 120 million by 2020.

Related: Samsung goes big in India with 'world's largest mobile factory'

There are over 800 million potential customers in India for both companies - and others - to target.

The iPhone is still nowhere

India is already the world's second largest smartphone market behind China, with more than 300 million users. And despite the dominance of Samsung and Xiaomi, there are opportunities for other vendors, said Canalys research manager Rushabh Doshi.

Other Chinese smartphone companies are also making a big play for Indian customers. Xiaomi's smaller rivals Vivo and Oppo now have 11% and 10% of the market respectively.

Related: Whatsapp is adding new restrictions as killings continue in India

One global brand that's nowhere in the picture? Apple.

The iPhone has struggled to gain a foothold in India for years, where Apple has been prevented from setting up its trademark stores because of regulations requiring single-brand retailers to make most of their products locally.

It's also too expensive for the vast majority of Indians, whose average annual wage is less than $2,000.

Shipments of iPhones to India fell about 50% in the last quarter, according to Doshi. Apple has started making some older iPhone models at a new plant in Bangalore, but it still mainly caters to wealthier customers.

West Lafayette
Overcast
58° wxIcon
Hi: 66° Lo: 44°
Feels Like: 58°
Kokomo
Overcast
55° wxIcon
Hi: 62° Lo: 43°
Feels Like: 55°
Rensselaer
Overcast
57° wxIcon
Hi: 62° Lo: 42°
Feels Like: 57°
Fowler
Overcast
57° wxIcon
Hi: 62° Lo: 42°
Feels Like: 57°
Williamsport
Overcast
61° wxIcon
Hi: 65° Lo: 43°
Feels Like: 61°
Crawfordsville
Overcast
55° wxIcon
Hi: 66° Lo: 44°
Feels Like: 55°
Frankfort
Overcast
57° wxIcon
Hi: 64° Lo: 42°
Feels Like: 57°
Delphi
Overcast
56° wxIcon
Hi: 64° Lo: 43°
Feels Like: 56°
Monticello
Overcast
56° wxIcon
Hi: 62° Lo: 43°
Feels Like: 56°
Logansport
Overcast
54° wxIcon
Hi: 62° Lo: 41°
Feels Like: 54°
Cooler weather is settling in.....
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 117450

Reported Deaths: 3580
CountyConfirmedDeaths
Marion21403766
Lake10618323
Elkhart6667111
St. Joseph6576110
Allen6292203
Hamilton4909109
Vanderburgh371931
Hendricks2747123
Monroe262736
Tippecanoe252313
Johnson2338124
Clark223657
Porter217647
Delaware198562
Cass19549
Vigo184327
Madison168975
LaPorte147441
Floyd138963
Warrick134440
Howard131863
Kosciusko124817
Bartholomew117957
Marshall101224
Dubois99119
Boone98646
Grant93334
Hancock93243
Noble92532
Henry80926
Jackson7689
Wayne76814
Morgan72938
Daviess67728
Shelby67729
Dearborn66528
LaGrange63911
Clinton60914
Harrison58724
Putnam58112
Gibson5305
Knox5259
Lawrence51529
Montgomery51121
DeKalb48711
White48614
Decatur45839
Miami4383
Greene42735
Fayette42313
Jasper3992
Steuben3877
Scott38111
Posey3400
Sullivan33812
Jennings31612
Franklin31125
Ripley3038
Clay3025
Orange28824
Whitley2796
Carroll27713
Adams2743
Wabash2718
Washington2691
Starke2677
Wells2654
Spencer2593
Jefferson2483
Huntington2453
Fulton2412
Tipton22822
Perry22113
Randolph2207
Jay1880
Newton17311
Owen1711
Martin1680
Pike1621
Rush1574
Vermillion1300
Fountain1282
Blackford1203
Pulaski1131
Crawford1080
Brown1043
Parke1032
Benton870
Ohio797
Union790
Switzerland690
Warren401
Unassigned0226

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events