According to new market research, Samsung took 20% of the smartphone market in India in Q4 2022, while Xiaomi took second place with 18% share. Analysts believe that this is mostly due to the “premiumization” of the market in the country. Indians now have more disposable income and are looking for more expensive phones.
Two years ago, the sub-$120 segment in India accounted for 41% of total smartphone sales, whereas now the share has fallen to 26%. In contrast, the premium segment (above $360) is experiencing a doubling of growth of 11%.
This is the main reason why Samsung overtook Xiaomi as the latter focuses on shooter-friendly devices while Samsung bets on its mid-range to high-end models. For example, in 2022 the Korean tech giant offered 16 premium phones, while Xiaomi only had 6. Their budget-friendly portfolio was 7 and 39, respectively, with most of Xiaomi’s budget smartphones sold out.
It seems that Xiaomi is struggling to adapt to the growing and mature Indian market. Only 1% of Xiaomi’s sales are premium phones, while Samsung’s sales are 13% high-end devices. In addition, the government has frozen $674 million of Xiaomi’s funds, citing illegal money transfers to foreign entities. This is not a big surprise given the strained relationship between China and India.
On the other hand, Samsung’s aggressive borrowing strategy appears to be paying off. In 2022, the company began offering easily accessible loans to new customers without special requirements. Even people with low credit scores, no proof of address or stable income were approved for smartphone loans, generating $1 billion in revenue.
In particular, analysts predict that Apple will be on the rise in the coming months and years as the company focuses exclusively on premium smartphones, which will see increasing demand as Indian living standards rise.
