Samsung loses ground in Indian smartphone market by shipment volume in Q2

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Samsung loses ground in Indian smartphone market by shipment volume in Q2

Published: 02 Aug. 2024, 15:57 Updated: 02 Aug. 2024, 17:04

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

A Samsung employee helps a visitor understand the latest AI features in the Galaxy S24 Ultra at Samsung Electronics' BCK Mumbai branch in India. [SAMSUNG ELECTRONICS]

Samsung Electronics missed the top spot in India's smartphone market by sales volume in the second quarter, giving way to a bombardment of cheap Chinese products.

However, it continued to dominate the world's second-largest smartphone market by revenue by focusing on premium devices like the foldables.

Samsung Electronics accounted for 18.1 percent of India's smartphone market in terms of shipments, coming in after China's Xiaomi and Vivo, which took up 18.9 percent and 18.8 percent of the market, respectively.

The previous year, Samsung topped the market with an 18.4 percent share, followed by Vivo with 17.4 percent and Xiaomi with 15 percent.

"Xiaomi reclaimed the top spot with a 23 percent year-on-year growth in its shipments, driven by a streamlined and focused portfolio that spans from entry-level to affordable premium segments," said Shilpi Jain, senior research analyst at Counterpoint Research, in a report.

India has risen to be the world's second-biggest smartphone market after China, toppling the U.S. The relatively low penetration rate of premium smartphones in the country prompted Samsung and Apple to rush to score an early win.

Samsung Electronics Vice Chairman Han Jong-hee recently made his second trip to India this year to visit the company's factory in Noida, characterizing the country as "one of the world's biggest and fastest growing markets."

The Counterpoint Research report pointed out that a shift to premium smartphones was spotted in the Indian market, indicating that it has reached an all-time high value for the second quarter.

"Consumers continued to upgrade to higher-value smartphones, supported by better trade-in values and easy financing schemes," the report said. "This resulted in a 24 percent year-on-year growth in the ultra-premium segment." Ultra-premium products are those that cost over 45,000 Indian rupees ($537).

Samsung Electronics, in terms of value, captured nearly one-fourth of the market, reigning in the top spot for two consecutive quarters. Its market share by value came to 24.5 percent in the second quarter, followed by Vivo and Apple with 16.8 percent and 16.3 percent respectively.

The report forecast Samsung's dominance to hold until the third quarter, thanks to the launch of new foldables like the Galaxy Z Fold 6.

It also is expected to release the latest version of its low-budget series, the Galaxy M, in the Indian market soon.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]