“Namaste, Mi Fans! We have officially arrived in India,” tweeted Xiaomi from the company’s official Twitter handle in April 2014.
Three years later, the Chinese phone maker company emerged as the fastest growing smartphone brand in the country, according to the International Data Corporation (IDC).
Xiaomi witnessed its sales quadrupled in September quarter last year and captured 24 per cent of India’s smartphone market in the third quarter equal the market of Samsung.
The company, however, couldn’t manage to maintain the pace of growth in India and has again fallen behind the South Korean leader Samsung in the country.
In the April-June 2018 quarter, Samsung regained its top spot with a 29 per cent market share compared to the 28 per cent held by Xiaomi, according to data from Counterpoint Research.
Experts say that Samsung has recently overhauled the inventory to make itself more competitive in the market, especially in the low and mid-range category. Besides, it is also focusing on the other aspect of the business–marketing. It was the principal sponsor for the Mumbai team during the Indian Premier League tournament in April this year.
Besides, Xiaomi has witnessed its major growth, about 75 per cent, coming from sub Rs 10,000 category. By comparison, Samsung took first place despite just 42 per cent of the devices it sold being in that price range. The price comparison shows that consumers who are willing to buy mid-range or expensive devices prefer Samsung than Xiaomi.
For Xiaomi, the situation is more alarming as in ‘Chinese phone category’ the other two competitors such as OnePlus and Honor have posted stronger growth during the period.
Phone makers Vivo, Oppo and Honor have a share of 12 per cent, 10 per cent and 3 per cent, respectively. Besides, the other phone makers collectively occupy a total of 18 per cent.
OnePlus shipments climbed 284 per cent, according to Counterpoint, and Honor posted a 188 per cent increase.
Xiaomi that exemplifies growth in the phone category has failed to maintain a sustainable pace. The company’s recent IPO launch is also a case in point–when it raised $4.7 billion (less than half of the earlier amount) at $54 billion (almost half of the projected valuation of $100 billion.
The development was first reported by Mint.