Samsung Set to Dethrone Xiaomi in Indian Smartphone Market Amidst Geopolitical Tensions
In a dramatic turn of events, Samsung is poised to dethrone Xiaomi as the reigning champion of India’s smartphone market in 2023. This anticipated shift comes amidst a concerted crackdown on Chinese brands, signaling a significant shake-up in the industry landscape.
Counterpoint Research, a reputable consultancy, foresees Samsung overtaking Xiaomi, marking a pivotal moment in the competition. Xiaomi, which has held sway since 2018, is expected to see its market share dwindle by 5 percentage points to a mere 15 percent this year. This decline paves the way for Samsung’s resurgence, along with its Chinese counterpart Vivo, to seize the market throne.
The impending shift underscores Samsung’s resurgence after a five-year hiatus from the top spot, fueled in part by mounting pressure on Chinese brands. The aftermath of a 2020 border clash has triggered a series of measures aimed at reining in Chinese tech giants operating in India.
Counterpoint Research’s data reveals a consistent trend of Samsung outpacing Xiaomi in quarterly shipments over the past four quarters. This reversal of fortunes marks a significant departure from Xiaomi’s ascendancy in 2017, which unseated Samsung’s longstanding dominance.
Geopolitical tensions, exacerbated by the border clash, have cast a shadow over Chinese brands’ dominance in the Indian market. The Indian government’s crackdown, including the ban of popular Chinese apps like TikTok and WeChat, underscores a growing skepticism towards Chinese tech companies.
Notably, Indian authorities have intensified scrutiny, resorting to raids and imposing tax penalties on Chinese brands like Xiaomi and Vivo. Xiaomi’s legal woes, including the seizure of funds worth over US$676 million, underscore the mounting challenges faced by Chinese firms operating in India.
Against this backdrop, Samsung’s impending ascension to the top spot symbolizes a seismic shift in India’s smartphone market dynamics. As geopolitical tensions continue to simmer, the stage is set for a new era of competition defined by resilience and adaptability.