HIGHLIGHTS

Xiaomi’s share in the Indian smartphone market has dropped to 13% in Q1 2025, down from 19% in the same quarter last year.

This statistic also encompasses the performance of Xiaomi’s sister brand, Poco.

The significant decline is attributed to lackluster demand for new models and high inventory levels.

Xiaomi’s position in the Indian smartphone market has experienced a notable decline, falling to 13% in the first quarter of 2025—down from 19% during the same period last year. This figure includes the sales data of Poco, Xiaomi’s sister brand. According to a report published by Counterpoint Research, this sharp downturn can be largely attributed to sluggish demand for newly launched models and critically elevated inventory levels.

This report arrives shortly after Digit raised alarms about Xiaomi’s operational issues in India, revealing considerable dissatisfaction among retailers. Notably, the Counterpoint Research findings align closely with Digit’s observations, indicating that Xiaomi’s shipments within India experienced a significant decline in the January-March quarter, while most of its competitors managed to sustain their sales figures from the previous year.

The company has made strides toward pursuing a more premium segment of the market, which is expected to present challenges at higher price points. However, what’s alarming is that Xiaomi is struggling to maintain sales within budget categories as well. The once-popular Redmi Note 14 series, which significantly boosted the company’s presence in India, has seen a drop in consumer interest that was not anticipated.

For an in-depth analysis, you can read more about this topic in the article: Inside Xiaomi’s sharp downfall in India: Poor product positioning, retailer dissatisfaction, and more.

The report indicates that Xiaomi’s quarter-on-quarter shipment decline is largely due to excessive inventory. While the brand launched models like the Redmi Note 14 series, Redmi 14C 5G, and A4 5G, these phones have not resonated with consumers as anticipated. Consequently, the company has shifted towards a more conservative strategy focused on clearing existing stock.

Additional reports from IDC and Canalys reveal similar concerns about Xiaomi’s performance. Canalys specifically noted that Xiaomi, along with Poco, experienced a staggering 38% year-on-year drop in shipments for Q1 2025, marking the largest decrease among major brands.

In contrast, other smartphone brands have successfully maintained their market positions. Vivo continues to lead the Indian smartphone market with a commanding 22% market share, while Samsung has seen a slight decrease, now holding a 17% market share—a drop of 1%. Oppo, combined with OnePlus, ranks third with a total share of 15%.

“In the first quarter of 2025, Vivo has further consolidated its leadership in India’s smartphone market, achieving a 9% year-on-year growth. This marks the company’s third consecutive quarter at the top, largely driven by strong demand for its offerings priced below INR 15,000, particularly the Y29 5G and T4x models,” said Shubham Singh from Counterpoint Research.

Meanwhile, Apple is making significant gains in India, recording impressive 29% year-on-year growth in volume during the first quarter—its best performance ever—thus solidifying its stronghold in the premium segment. Collectively, India’s smartphone shipments declined by 7% year-on-year in Q1 2025 as the market grapples with surplus stock and falling shipments.