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Samsung and Xiaomi each shipped an estimated 9.9 million smartphones in India in the second-quarter of 2018, as per the Singapore-based research firm Canalys. In fact, both the companies now hold for 60 per cent of total shipments in the country, which is up from 43 per cent compared to last year.
With more than double the shipment, Xiaomi managed to take the first spot while Samsung took the second place. Samsung was followed by Chinese smartphone brand Vivo and Oppo at third and fourth place respectively. Oppo and Vivo shipped 3.6 and 3.1 million units in the country.
Samsung’s annual growth rate hit nearly 50 per cent since the fourth quarter of 2015. Overall shipments grew by 22 per cent, to just under 33 million units. “Samsung is hitting back,”Canalys Analyst TuanAnh Nguyen said. “It has launched devices pitted directly against Xiaomi’s portfolio and is focusing on its cameras and imaging capabilities with Portrait Dolly and Background Blur Shape functions,” he added.
The research firm claims Samsung’s J2 Pro was the company’s top model in Q2 2018, with 2.3 million units shipped in India. Meanwhile, Xiaomi shipped 3.3 million units of Redmi 5A in the last quarter.
Also Read: Xiaomi reports 116% growth in Q1 as Samsung beats Apple to become top global smartphone vendor
“Despite Xiaomi’s growing popularity in India, Samsung will remain the first choice for consumers. Its technological prowess and supply chain mastery will continue to give it an edge over Xiaomi for the foreseeable future,” the report cited.
Canalys further cited that despite ongoing consolidation at the top, small vendors are making effort, rewriting their business strategies for ‘long-term sustainability’ and ‘profitability.’ Asus switching its distribution to online-first strategy with Flipkart, its shipment nearly tripled since the previous quarter, Canalys noted.
“Volume is not the only strategy in India,” Canalys Research Manager Rushabh Doshi said. “Samsung and Xiaomi often distract from the opportunities that India has to offer smaller and leaner smartphone vendors looking for additional business opportunities. The climate is right for businesses to realign and re-enter the market. Apple’s iPhone shipments to India fell by about 50% in Q2 2018. But Apple’s paring back of distributor partners and move to a ‘brand-first, volume-next’ strategy will reap rewards as it will ensure better margin per device. Getting priorities right will be important to smartphone vendors, and it will be a choice between profitability and volume growth,” he added.
