Xiaomi India’s market share dropped by 8 percent in 2 years, reports show

The Chinese smartphone manufacturer Xiaomi has maintained the top position in smartphone shipments in India for the last several quarters, 17 to be specific. As per reports from various research agencies, Xiaomi’s market share has dropped significantly in the last few quarters.

As per a Counterpoint Research report, Xiaomi recorded a 29 percent market share in Q1 2020. However, as per a Canalys report, Xiaomi’s market share dropped to 21 percent in Q4 of 2020, which calculates to around an 8 percent drop.

Despite the significant drop in market share, the company topped the chart in the fourth quarter of 2020 and shipped 9.3 million units in the country, as Canalys reported.

An IANS report shows chip shortage as one of the major reasons behind the drop in market share. The report stated that “Xiaomi has been hit by component shortage in the mass-market, entry-level segment where its rival brands are rapidly gaining with riding on a new chipset player called Unisoc”.

“Certain brands which picked entry-level chipset provider Unisoc in the mass-market affordable segment amid the global chip shortage were able to meet the demand in the mass-level market, while Xiaomi lost on the opportunity as it was hit by supply issues in the all-important festive quarter (October-December)” the report further noted.

The Chinese smartphone manufacturer either depends on MediaTek or Qualcomm for chips, which possibly backfired and dropped the overall market share.

In the last year, Xiaomi has been aiming to gain footprint in the premium segment with its Mi products but that doesn’t seem to have worked well for the brand so far. In 2021, Apple’s market share doubled due to “increased share of domestic manufacturing, aggressive retail initiatives, and robust consumer demand”.

As per market research firm Techarc, in 2021 Apple sold 5-6 million units. CMR research firm states that the Cupertino based tech giant registered 34 per cent growth in the October-December time period.

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