As per Canalys data, total mobile shipments grew by a marginal 1% from a year earlier in the June quarter to 36.4 million units. The research firm forecast a mid-single-digit increase in shipments during the upcoming festive season and for the full year. Muted shipment growth in the fiscal second quarter was due to elections, subdued seasonal demand, and heatwaves in several parts of the country, it said.
“Inventory levels remained high with some vendors continuing to launch new devices in higher price segments during the quarter, while others concentrated on reducing existing stocks to optimise inventory ahead of the festival season,” according to Canalys.
Sanyam Chaurasia, senior analyst at Canalys, said top mass-market brands expanded their mid-high-end portfolios in the June quarter and “shall use early monsoon sales to clear inventory, making space for new models ahead of the festive season.”
Xiaomi’s renewed rise to the top and strong performance of other Chinese brands underline their popularity despite ongoing Indian government scrutiny. Xiaomi India, for instance, is being probed by the Enforcement Directorate (ED) which is investigating the company’s payments to third parties since its incorporation in 2014. The ED has alleged Xiaomi of remitting money illegally to third parties under the guise of paying royalties to its Chinese parent. Xiaomi India has denied any wrongdoing, and the matter is in court.
“Xiaomi seems to have emerged clear of the impact of their past troubles with the ED and senior management exits. Their India leadership is steering operations stably. They have taken a calculated approach to offline channel expansion, starting in 2023,” said Shilpi Jain, research analyst at Counterpoint. “We have also heard that the company has increased margins for its offline dealers. Its in-house financing scheme has further instilled confidence in consumers,” she added.
“While reclaiming the top spot in Indian smartphone market is an achievement, we are proud of, our priorities go beyond rankings…our deep understanding of India coupled with our inherent technological strength has allowed us to become an integral part of the country’s social fabric,” B. Muralikrishnan, president, Xiaomi India, said in a post on social messaging platform X.
The four Chinese players in the top five cumulatively cornered a 59% share in the June quarter, up from 55% a year earlier. Cumulative market share of Chinese smartphone brands – Xiaomi, Vivo, Oppo, Realme, Transsion, Motorola – rebounded to more than 75% in the June quarter, from a low of 61% in the September quarter last year, according to market trackers.
(You can now subscribe to our Economic Times WhatsApp channel)
