Indian mobile companies lose market share to China


Latest Q4 data shows Chinese companies like Xiaomi, Vivo and Oppo have captured 38.9 per cent of the Indian mobile phone handset market.

Bangalore, March 1, 2018: Significant reduction in the Q4 2017 business share is a reason to worry for the Indian mobile phone makers. If one goes by the latest data then Chinese companies have strengthened their position in the Indian mobile phone market.

However, South Korean giant Samsung remained among the top players with a share of 24.2 per cent.

Stiff competition from China has restricted the market for Indian companies like Micromax Informatics, Lava International Ltd. and Karbonn Mobiles Pvt Ltd  to 15 per cent in Q2 2017.

Rohan Charles Egbert, Manager (Sales) for South Division, Lava International, said, “Our contribution to the market is down from previous years. Overall, the industry has been suffering as we struggle to match the prices offered by Xiaomi especially in the budget segment.”  He added senior managers at the company have been quitting as the future is uncertain.

While Indian companies struggle, statistics show Chinese maker Xiaomi to be the most purchased brand in India with a share of 26.8 per cent in Q4 2017.

Responding to an email, Karthik P S, Business Development Manager at Xiaomi Technology said, the company expected yet bigger profits in 2018. He added the reason for Chinese companies’ success is their pricing strategies and superior product offerings.

Bernice D’souza, an economist based in Bangalore, said, “A careful analysis shows the gains in market share have been mostly in the budget to mid-pricing segment. Indian companies need to innovate and bring better products for budget consumers to regain back their position.”

Vinita Udiaver, a user of Xiaomi said that she is satisfied with the phone and it was a reasonable buy. She added that it worked as well as the higher end phones.