Samsung Closely Chases Xiaomi in 2Q India Smartphone Market... Gap Less Than 1%P

Counterpoint Research Aggregated Announcement
Gap Between 1st and 2nd Place Narrowed to Less Than 1%

Source=Counterpoint Research

[Asia Economy Reporter Cha Min-young] In India's second-quarter smartphone market, Samsung Electronics narrowed the market share gap with the leading Xiaomi to less than 1 percentage point by achieving strong performance in both mid-range models and premium phones such as the Galaxy S22 series. While Xiaomi struggled due to parts shortages and inflation, Samsung strengthened its brand competitiveness and closely pursued the leader.

According to the Market Monitor service of global market research firm Counterpoint on the 5th, India's smartphone shipments in the second quarter of 2022 totaled 37 million units. This represented a 9% growth compared to the same period last year due to the base effect from COVID-19, but a 5% decrease compared to the previous quarter due to weakened consumer sentiment.

Xiaomi barely maintained its lead but its market share dropped to 19%, down 9 percentage points from 28% the previous year. Shipments decreased by 26% year-on-year. This was due to multiple challenges including parts shortages, inflation, and intensified competition in the budget segment. However, Xiaomi retained its top position by restructuring its low-price portfolio with the 'Redmi 10' series. Xiaomi also ranked third in 5G smartphone shipments.

The gap with second-place Samsung Electronics narrowed to less than 1%. Samsung's market share rose to 19%, up 1 percentage point from 18% the previous year. Shipments increased by 14%, and Samsung led among 5G smartphone brands. It recorded solid performance in both mid-range models and low-priced premium segments. Samsung's strong results are attributed to the renewal of the M series, the strength of the 'Galaxy S22 Ultra,' and the reinforcement of its own online store.

Third to fifth places were occupied by Chinese manufacturers. Market shares showed slight increases or decreases compared to the previous year in the order of Vivo (15%→17%), Realme (15%→16%), and Oppo (10%→11%). Notably, Vivo reclaimed third place with a 22% year-on-year increase in shipments. Realme, which dropped to fourth place, showed the most aggressive growth with a 23% increase in shipments despite the ranking fall. Oppo ranked fifth with an 18% growth in shipments.

Analyst Prachi Singh said, "Demand decreased compared to the previous quarter, especially in May and June," and analyzed, "Consumers preferred repairing products or purchasing refurbished devices rather than buying new ones." She added, "This trend was particularly noticeable in the entry-level and low-price markets," and pointed out, "Due to the demand decline, almost all brands are facing inventory issues." In fact, by the end of June, the Indian smartphone market held inventory for more than 10 weeks, which is more than twice the usual level.

Meanwhile, according to Counterpoint Research, the number of smartphone users in India surpassed 600 million this quarter. The penetration rate of 5G smartphones is also continuously increasing, with 5G smartphones accounting for 29% of India's smartphone shipments in the second quarter, marking an all-time high. The average selling price (ASP) of smartphones also grew by 10% compared to the same period last year.

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