Xiaomi sees slump in Indian smartphone market share amid challenges but holds onto top spot
- Xiaomi held 23 per cent of India’s smartphone market in the first quarter, down from 26 per cent in the same period in 2021, according to Counterpoint
- India’s financial investigation agency seized US$725 million from the Chinese firm, accusing it of making illegal remittances abroad
Chinese electronics maker Xiaomi, facing rising challenges from Indian regulators and economic headwinds, lost share in the world's second-largest smartphone market in the first quarter but remains No 1 overall in the country.
The move came amid rising tensions between the two countries and as Indian authorities increased their scrutiny of Chinese tech companies. Last month, the former head of Xiaomi India, Manu Jain, was also summoned by the directorate for questioning over tax related compliances and company structure.
Xiaomi, while retaining its top spot in India’s smartphone market in the first quarter of this year, has nonetheless seen a slump in market share amid headwinds. The company held 23 per cent of India’s smartphone market in the first quarter, down from 26 per cent in the same period in 2021, according to a report published by research firm Counterpoint last week.
Samsung Electronics was the No 2 player in the first quarter with 20 per cent market share, while other major Chinese brands Realme, Vivo and Oppo followed with 16 per cent, 15 per cent and 9 per cent respectively, the report showed.
Ivan Lam, a Hong Kong-based senior analyst at Counterpoint, said the latest development shows that geopolitical tensions and local policies remain the biggest risks for Chinese smartphone brands that have been seeking to expand overseas, especially in developing markets, where local rules and regulations are “still on their way to be perfected”.
However, Lam does not think the latest move by Indian authorities was “very negative” for Xiaomi’s overall development because regulatory problems are not unique to Chinese companies. For example, US tech giants, including Apple and Google, face antitrust investigations in Europe.