The South Korean electronics behemoth, Samsung, once the undisputed leader of the Indian smartphone market, is reportedly witnessing a significant erosion in its market share.

Chinese rivals Xiaomi and Vivo are challenging the top smartphone manufacturer, leading to Samsung’s market share plummeting to a 10-year low.

What Happened: Samsung’s stronghold in the Indian smartphone industry has been gradually waning, reported Moneycontrol.

The company, which was the market leader until last year, has seen its market share drop to its lowest in a decade. The data from the second quarter of the year reveals a significant decrease in both volume and value market share for Samsung.

Analysts point to a mix of factors contributing to this decline, including brand fatigue, inventory issues, stiff competition from Chinese brands and resistance from offline retailers. Samsung’s differential pricing model for the online segment, offering cheaper phones, has been a bone of contention for offline retailers.

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On the other hand, Vivo and Xiaomi have been making impressive inroads in the market. Vivo has managed to capture a significant market share with its competitively priced high-end smartphones, while Xiaomi is striving to solidify its foothold in the premium handset market, traditionally dominated by Samsung and Apple.

According to market research firms IDC, Counterpoint and Canalys, Samsung slipped to the third position in volume in the second quarter of 2024.

Samsung’s smartphone shipments dwindled by 15.4% in the April-June period, resulting in a decline in its volume market share to 12.9%. Its value market share also dipped to 16% from 23% in the preceding quarter and 21% a year ago.

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