# Decimated by Xiaomi-led tsunami, Indian smartphone makers toil to survive (HT Tech)

> In the 2013-2014 period, the domestic brands gained great traction and enjoyed 40-45 % market share -- till the time Chinese behemoths entered the fray.

# Decimated by Xiaomi-led tsunami, Indian smartphone makers toil to survive

## In the 2013-2014 period, the domestic brands gained great traction and enjoyed 40-45 % market share -- till the time Chinese behemoths entered the fray.

Jan 22 2019, 11:53 IST

![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook.png)

![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook-hover.png)

![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Share.png)

![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Shareclicked.png)

![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp.png)

![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp-hover.png)

![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter.png)

![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter-hover.png)

![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook.png)

![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook-hover.png)

![Bookmark](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmark.png)

![Bookmarked](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmarked.png)

![According to International Data Corporation (IDC), Xiaomi shipped 11.7 million units and became the top brand with 27.3 % share in the third quarter.](https://images.hindustantimes.com/tech/rf/image_size_960x540/HT/p2/2019/01/22/Pictures/inside-xiaomi-corp-s-headquarters-and-showroom_a6d9ba92-1e0b-11e9-bb85-cb690a337037.jpg)

According to International Data Corporation (IDC), Xiaomi shipped 11.7 million units and became the top brand with 27.3 % share in the third quarter. (Bloomberg)

![Author Photo](https://images.hindustantimes.com/tech/static/revamp/images/png/HTTech-new-circle-logo.png)

### By INDO ASIAN NEWS SERVICE

Once the darling of Indian smartphone users, desi brands like Micromax, Karbonn, Lava, Intex and few others have nearly been decimated by affordable-yet-powerful devices from the Chinese vendors that have flooded both online and offline channels.

In the 2013-2014 period, the domestic brands gained great traction and enjoyed 40-45 % market share -- till the time Chinese behemoths entered the fray.

Led by Xiaomi, the China-based manufacturers registered 58 % market share while Indian local brands had a mere 13 % market share in the third quarter (July-August-September) of 2018, according to latest figures shared by Counterpoint Research.

Also read

click here.

Riding on the success of its budget Redmi series, Xiaomi touched a new high in the third quarter of 2018 in India. According to International Data Corporation (IDC), Xiaomi shipped 11.7 million units and became the top brand with 27.3 % share in the third quarter.

Today, smartphones contribute to over 90 % of the sale volume for Xiaomi in India and recently, the company entered into new segments like TVs, routers and air purifiers etc which got popular too.

Despite the government push "the local vendor fell prey to China-based vendors owing to powerful specifications at a very affordable and aggressive pricing, thus leading to these vendors almost fading away from the Indian smartphone market," stressed Upasana Joshi, Associate Research Manager, Client Devices, IDC India.

According to Prabhu Ram, Head-Industry Intelligence Group (IIG), CyberMedia Research (CMR), the rate of change of smartphone technology is phenomenally swift and today, disruption is the rule of the game.

"Smartphones are becoming incredibly sophisticated with decreasing costs. With increasing adoption of Artificial Intelligence (AI) and Machine Learning (ML), it is imperative for smartphone brands to ramp up their internal research and development, and product engineering capabilities," Ram told IANS.

Xiaomi has managed to generate a strong pull for its brand through aggressive product specs and pricing which very few brands can match.

"This has helped the brand to gain mind share, followed by market share and become the top smartphone brand in India in its third year of India operations," said Tarun Pathak, Associate Director at Counterpoint Research.

Later, Pathak added, the strong demand for Xiaomi's products during flash sales further spiked consumer interest with retailers too started showing interest in stocking Xiaomi products as they sell very fast.

Aiming to help domestic smartphone manufacturers recover lost ground, the government has taken several measures in the recent past, like easing norms for local manufacturing and hiking customs duty on mobile phones.

The government also came up with a phased manufacturing plan to boost indigenous production of mobile phones by providing tax relief and other incentives on components and accessories used for the devices.

However, most of the Chinese vendors are now manufacturing and locally sourcing parts so they are not affected by changes in the policy.

Unless the Indian vendors ramp up research and development, they will not succeed at the smartphone wars.

"They cannot simply rely on just contract manufacturers to get them their competitive edge," Ram noted.

There is, however, a thin silver lining for the Indian players.

In the less than ₹5,000 segment lies a huge potential for FTBs (first-time buyers) of smartphones and the ones migrating from feature phones to smartphones.

"Currently, there is no vendor in the market who is focusing on this segment as availability of easy financing schemes has raised the overall average selling price (ASP) of smartphones."

"If local vendors focus on this less than 5K segment and launch products which are equivalent in all means to China-based vendors (quality, pricing and promotions) along with some subsidies from Telco players like Reliance and Airtel, it might help them make a comeback," explained Joshi.

With the revised government policies on e-commerce players and level-playing game for all ecosystem channel partners, offline will continue to remain relevant along with a power-play game in the online channel too for all the smartphone players.

"Micromax, Intex, Karbonn and Lava have had deep reach and presence across offline retail counters. They can leverage on this strength and come back to market with good quality, high-rated specifications at affordable prices," said Joshi.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

22 Jan, 11:41 IST

71,589,384,684,885

NEXT ARTICLE BEGINS

![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png)

## Tips & Tricks

![Ghibli-style art](https://images.hindustantimes.com/tech/img/2025/03/28/414x233/ChatGPT_Ghibli_style_images_1743161814450_1743161814596.jpg)

### How to turn your photos into Ghibli-style art with ChatGPT for free: Step-by-step guide

![How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide](https://images.hindustantimes.com/tech/img/2025/02/14/414x233/invites_1738728829564_1739543695649.png)

### How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide

![Apple TV app arrives on Android phones and tablets: What you get and how to install it](https://images.hindustantimes.com/tech/img/2025/02/13/414x233/unnamed_1739426557335_1739426567634.jpg)

### Apple TV app arrives on Android phones and tablets: What you get and how to install it

![Vodafone Idea OTT plans](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Vodafone Idea users can now stream 17 OTT apps with one subscription: Here's how

![Android data transfer methods](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### How to transfer data from one Android to another using Google backup, USB-C cable, and more

## Editor’s Pick

![iPhone 16e launched with A18 chip, Apple AI—bringing flagship power on a budget: Check specs, price](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### iPhone 16e launched in India: All details about the new budget mobile from Apple

![DeepSeek was founded in China with only a fraction of the budget of the top AI companies in the US.](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### DeepSeek AI: How it works, who’s behind it, how it’s different from ChatGPT, and its big US market impact explained

![iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on

![Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini

![iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update

## Trending Stories

![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order

![Infinix Note 50s 5G+](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC

![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more

![Apple Intelligence AI training](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Apple plans to train AI using your on-device data without accessing personal content or emails: Report

![CMF Buds 2](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside

keep up with tech

![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png)

![Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-twitter.png)

![WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-whatsApp.png)

![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png)

## Gaming

![Check out these five gaming monitors under  <span class='webrupee'>₹</span>20,000,](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Top 5 gaming monitors under ₹20000 you should consider

![gaming consoles](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off

![Pokémon GO Wild Area 2025](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges

![Shade Silver](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Shade Silver free on Steam for a limited time: Here’s how to get it

![Call of duty](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png)

### Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak

![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png)

## Trending News

### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order

![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.livemint.com/static/static/1x1_img.gif)

### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC

![Infinix Note 50s 5G+](https://images.livemint.com/static/static/1x1_img.gif)

### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more

![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.livemint.com/static/static/1x1_img.gif)

### Apple plans to train AI using your on-device data without accessing personal content or emails: Report

![Apple Intelligence AI training](https://images.livemint.com/static/static/1x1_img.gif)

### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside

![CMF Buds 2](https://images.livemint.com/static/static/1x1_img.gif)

## Trending Gadgets

Mobiles

Laptops

Tablets

![HT Tech](https://images.hindustantimes.com/tech/static/revamp/images/png/HT_tech-new.gif)

- https://tech.hindustantimes.com/tech/news/decimated-by-xiaomi-led-tsunami-indian-smartphone-makers-toil-to-survive-story-7S2ph6TTpqTYDhO6mtJ93J.html