Business · Companies · 3 hrs ago
Chinese smartphone brands lose share in India as chip costs rise
Chinese brands held 67-68% of India’s smartphone market in July-September, their lowest share in more than eight years.
The estimates differ slightly: Omdia put their share at 68%, while Counterpoint Research put it at 67%.
Record-high memory chip prices pushed up phone costs, and brands including Vivo, Oppo and Xiaomi cut back on budget models or reduced their features.
This left more room for Indian brands such as Lava and Ai+ to attract budget-conscious buyers.
Indian brands’ combined market share rose to 7%, up from 2% a year earlier, with Ai+ and Lava accounting for most of that share.
India’s smartphone shipments fell 20-26% to 35.8 million units, as higher prices led some consumers to delay upgrades.
Samsung and Apple gained share through premium phones, while Chinese brands focused more on mid-range and premium models to protect profits.
Chinese smartphone brands’ share of the Indian market fell to 67-68% in July-September, its lowest level in more than eight years, according to research firms.
Record-high memory chip prices have pushed Chinese brands to cut budget models and reduce specifications.
Indian brands, including Lava and Ai+, gained ground among price-sensitive consumers as demand shifted away from more expensive devices.
Indian brands’ combined market share rose to 7% from 2% a year earlier, according to Counterpoint Research.
India’s smartphone shipments fell 20-26% year on year to 35.8 million units, a decade low.
- Who
- Chinese smartphone brands, including Vivo, Oppo and Xiaomi, lost market share as Indian brands gained.
- What
- Chinese brands’ share fell to 67-68% in India. Rising memory chip costs prompted cuts to budget models and specifications.
- When
- The July-September quarter.
- Where
- India.
- Why
- Record-high memory chip prices raised costs and device prices, while consumers delayed upgrades and Chinese brands cut budget offerings.
Chinese smartphone brands
Indian smartphone brands
Market position
Chinese smartphone brands
Chinese brands held 67-68% of the Indian market in July-September, down from 71% in the previous quarter according to Omdia.
Indian smartphone brands
Indian brands’ combined share rose to 7% from 2% a year earlier, according to Counterpoint Research.
Product strategy
Chinese smartphone brands
Chinese manufacturers cut specifications and reduced the number of models in lower price bands to manage costs and support profitability.
Indian smartphone brands
Indian brands maintained their product line-ups with a focus on volume growth, targeting consumers reluctant to stretch their budgets.
Chinese brands held 75% of the Indian smartphone market a year earlier, according to Omdia.
Chinese brands’ market share peaked at 80% in this quarter of 2020, according to Omdia.
Chinese brands’ share fell to 67-68%, while India’s smartphone shipments dropped to 35.8 million units.
- Chinese brands’ share
- 67% according to Counterpoint Research; 68% according to Omdia
- Indian brands’ combined share
- 7%, up from 2% a year earlier
- India smartphone shipments
- 35.8 million units in July-September
- Shipment decline
- 20-26% year on year
- Indian brands
- Ai+ and Lava accounted for almost 95% of the contribution within Indian brands, according to Counterpoint Research
What people are saying
What Chinese OEMs (original equipment manufacturers) have been doing over the last four to five quarters is that they’ve been trying to cut down their specs to manage their costs. Essentially, cost optimisation through spec cuts