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Xiaomi Makes A Come Back In India’s Smartphone Market, But Shares Top Spot With Chinese Rival Vivo

Amjad Ali July 18, 2024

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Chinese smartphone maker Xiaomi is back on top in India after losing its crown in the world’s second-largest handset market 18 months ago, but has to share the honour with domestic rival Vivo.

Xiaomi took an 18 per cent market share in the second quarter with shipments of 6.7 million units, putting it back in the No 1 spot after six quarters, according to data released by Canalys on Thursday.

That represented a 24 per cent growth compared to the June quarter in 2023, driven by Xiaomi’s mid-range and premium handsets, according to Canalys.

However, Xiaomi – the world’s third-largest smartphone maker – had to share the top spot in India with Vivo, which also shipped 6.7 million units in the same quarter for a market share of 18 per cent. The Indian smartphone market only reported modest growth of 1 per cent in the second quarter, amid subdued seasonal demand, extreme weather and the national elections, the Canalys report said.

A customer looks at a Vivo smartphone in an electronics store in India. Photo: Shutterstock Images

“Brands such as Xiaomi boosted their mid-to-high-end product line-up, driving volumes for the quarter with the Redmi Note 13 Pro series featuring refreshed colour offerings and the newly launched Xiaomi 14 Civi with its camera quality and distinctive leather design,” Sanyam Chaurasia, senior analyst at Canalys, said in a report.

Xiaomi has been fighting plunging sales and a shrinking share in one of its biggest markets outside China amid geopolitical tensions that have resulted in heightened scrutiny of Chinese technology firms after a deadly 2020 border clash between Chinese and Indian forces.

Since 2021, the Beijing-based firm has been a target in various investigations by Indian authorities on issues including taxation, custom duties, and foreign exchange compliance.

In 2022, India’s federal financial crimes agency said it uncovered years of suspicious remittance payments made by the company’s local arm to three foreign entities and seized funds worth more than US$676 million. Xiaomi has denied the accusations.

Xiaomi’s profit in India plunged 77 per cent to Rs 238.63 crore (US$28.5 million) in the financial year 2022 to 2023, according to a report by Economic Times, citing a regulatory filing. The company’s revenue declined 32 per cent to Rs 26,697 crore in the 2023 financial year.

Xiaomi did not immediately respond to a request for comment on its financials in India.

After holding its leadership position in India for years, Xiaomi lost its crown to South Korea’s Samsung Electronics and Vivo in the fourth quarter of 2022, previous Canalys data showed.

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