The Korean giant has been toppled in the fastest growing market in the world

Chinese brand Xiaomi has apparently managed to topple Korean brand Samsung from the top of the fastest-growing smartphone market in the world. 

According to data released Counterpoint Research, the Chinese brand known for their bang-for-the-buck devices has managed to nab 25% of Indian smartphone sales in the last quarter of 2017, compared to Samsung’s 23%. Canalys, another research firm, confirms Xiaomi’s dominance in the market, pegging Xiaomi’s overall market share at 27%, compared to Samsung’s 25%.

Samsung has previously retained the top spot in India the past six years, but Chinese rival Xiaomi has been steadily rising up the ranks in terms of marketshare ever since its entry to the market in 2014. Both brands combined accounted for half of smartphone sales in the territory. 

Canalys attributes Xiaomi’s performance to Samsung’s inability to produce low-cost phones for India’s market, which typically don’t have a lot of purchasing power.

“It has been unable to win over cost-conscious consumers, losing market share in the sub-INR15,000 (US$240) segment to Xiaomi quarter after quarter. Despite its ability to offer better margins and funding to the offline channel, consumer demand for Samsung’s devices has been weak. But it has far superior R&D, and a better hold on the supply chain due to its strong components business. The power struggle between Xiaomi and Samsung will continue well into 2018, as Samsung revamps its low-cost portfolio and fights to take back the aspirational status it once held in minds of Indian consumers,” said Rushabh Doshi, Analyst.

Of course, Xiaomi’s dominance may be short-lived – Samsung is possibly re-tuning their strategy in the Indian market, and may release more affordable devices in the future to combat Xiaomi’s threat to their bottom-line.