For the first time in five years, the Chinese company Xiaomi lost its leading position in the smartphone market in India, losing to two competitors at the same time. According to the source, South Korea’s Samsung and China’s Vivo overtook Xiaomi in terms of smartphone shipments to India in the fourth quarter of last year.
In the fourth quarter, sales of Xiaomi smartphones in India fell by 40%. As a result, the company, which held the top position for 20 consecutive quarters, lost two positions in the supplier ranking. This is indicated by data from the analysis company Canalys, whose experts calculated that in three months Xiaomi shipped 5.5 million smartphones to India, which corresponds to a 17% market share. The decline in Xiaomi device shipments was caused by low online sales in the quarter due to increased regulatory scrutiny.
At the same time, the share of Samsung was 21% and Vivo 20%. The South Korean company has shipped 6.7 million devices to the Indian market, making it the market leader for the first time since the third quarter of 2017. Despite this, the company’s smartphone shipments fell 21% during the period compared to the fourth quarter of 2021. This is because the Indian smartphone market declined by 27% to 32.4 million devices over the period. Still, Vivo managed to increase quarterly sales by 13% to 6.4 million units.
Realme has seen its biggest sales drop yet. Realme smartphone shipments in India fell 65% year over year to 2.7 million units in the fourth quarter. That put the company in fifth place in the smartphone vendor rankings, behind Oppo, which grew quarterly revenue by 9% to 5.4 million devices.
Xiaomi’s demise in the Indian market comes amid increased government control over Chinese tech companies. Last month, the head of Xiaomi’s Indian division, Raghu Reddy, left his post. This comes two months after an Indian court ruled to seize $676 million owned by Xiaomi in a case of illegal money transfers to foreign companies under the guise of paying royalties.
Relations between China and India have been going through tough times lately, as evidenced by the increasing scrutiny by local authorities of the activities of Chinese companies. Earlier this year, Indian authorities raided the offices of Xiaomi and Vivo in connection with the manufacturers’ allegations of tax evasion and money laundering. Xiaomi was also forced to shut down its financial services business in India by removing mobile payment and lending apps from local digital marketplaces.