Samsung Caught Between Chinese Firms, Barely Holds 2nd Place in India Market... Vivo Closely Chasing

[Asia Economy Reporter Joselgina] Samsung Electronics has become a sandwich caught between Chinese manufacturers leading a low-cost offensive in India, the world's second-largest smartphone market. While trailing behind the number one Xiaomi, Vivo is closely chasing from behind.

According to market research firm Canalys on the 22nd (local time), the shipment volume of the Indian smartphone market in the second quarter was recorded at 32.4 million units, down 13% compared to the previous quarter. Although it grew 87% compared to a year ago when the market was in shutdown due to the direct impact of COVID-19, it declined for two consecutive quarters due to the recent resurgence. Canalys reported the atmosphere, saying, "COVID-19 variants are emerging and spreading rapidly in India," and "this is a wake-up call for smartphone suppliers."

By manufacturer, Chinese Xiaomi maintained first place with a market share of 29%. In terms of shipment volume, it grew 77% compared to the same period last year (5.3 million units), which was hit hard by COVID-19, reaching 9.5 million units. This is nearly double the shipment volume of Samsung Electronics (5.5 million units) during the same period. It is analyzed that strong online sales centered on the Redmi Note 10 series in the local market were effective.

Samsung Electronics recorded second place with 17%. The market share gap between Xiaomi and Samsung Electronics narrowed to 12 percentage points from 14 percentage points a year ago but remains in double digits.

While the gap with Xiaomi is hardly narrowing, Chinese Vivo is closely chasing Samsung Electronics from behind. Vivo shipped 5.4 million units in the second quarter, recording a market share of 17%. The shipment volume difference with Samsung Electronics is only about 100,000 units. Following them, Chinese companies Realme (15%) and Oppo (12%) ranked fourth and fifth. Among the top five, four companies except Samsung Electronics are all Chinese manufacturers.

Canalys forecasted that the Indian smartphone market will rebound in the second half of this year due to the effects of vaccination and new product launches. However, it is analyzed that strong pent-up demand like last year is unlikely. Concerns about the resurgence of COVID-19 remain, and worsening macroeconomic conditions, parts supply shortages, and rising transportation costs are expected to have a negative impact on the overall market.

This content was produced with the assistance of AI translation services.