According to new market research, Samsung captured 20% of the smartphone market in India in Q4 2022, while Xiaomi ranked second with an 18% share. Analysts believe this is mainly due to the “premiumisation” of the market in the country. Indians now have more disposable income and are aiming for more expensive mobile phones.
Two years ago, the sub-$120 segment in India accounted for 41% of total smartphone sales, while now that share has dropped to 26%. Conversely, the premium segment (above $360) recorded double growth of 11%.
This is the main reason why Samsung has surpassed Xiaomi, as the latter is focusing on budget-friendly devices, while Samsung is betting on its mid-range and high-end models. For example, in 2022, the Korean tech giant offered 16 premium phones while Xiaomi only had 6. Their budget portfolio was 7 and 39 respectively, with most of Xiaomi’s budget smartphones sold out.
It seems that Xiaomi is struggling to adapt to the growing and maturing Indian market. Only 1% of Xiaomi’s sales are premium phones, while Samsung’s sales are 13% high-end devices. Additionally, the government froze $674 million of Xiaomi’s funds, citing illegal remittances to foreign entities. This is not a big surprise, given the strenuous relationship between China and India.
On the other hand, Samsung’s aggressive lending strategy appears to be paying off. In 2022, the company began offering easy access loans to new customers with no special requirements. People with low credit scores, no proof of address, or stable incomes were also approved for smartphone loans, generating $1 billion in revenue.
Specifically, analysts expect Apple to scale up in the coming months and years as the company focuses solely on premium smartphones, which will see increased demand as Indian living standards rise.
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