Samsung logs lowest market share in 4 years, loses No 2 slot to China’s Vivo

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January 26, 2020 12:59 AM

Xiaomi grew 7% YoY in Q4 2019 and 5% YoY in 2019 driven by expansion in offline channels and strong performance of Redmi Note series. India is now the biggest market for the company, surpassing its home market, China, in 2019.

On the bright side, the Korean firm retained the N. 2 spot for calendar year (CY) 2019, with a market share of 21%. Market leader Xiaomi’s share stood at 28%.

Samsung, which once led the Indian handset industry, registered its lowest market share in four years as the electronics giant slipped to No.3, losing the second spot to China’s Vivo. During October-December 2019, the South Korean company’s share in the world’s second-largest smartphone market stood at 19%.

According to Counterpoint Research data, Sam sung was the undisputed leader till Q3 2017, but was replaced for the first time in Q4 2017 by China’s Xiaomi.  Interestingly, Samsung’s market share, at its peak in the past four years, was 29%, which it achieved in Q1 2016, the quarter Xiaomi logged its lowest in the same review period. Samsung again logged a 29% market share in Q2 2018, the same quarter it replaced Xiaomi for the last time as market leader. Xiaomi’s share of 31% in Q1 2018 has been its highest ever since.

On the bright side, the Korean firm retained the N. 2 spot for calendar year (CY) 2019, with a market share of 21%. Market leader Xiaomi’s share stood at 28%.  “Samsung shipments remained almost flat YoY in Q4 2019, while it has shown a 5% YoY decline in CY 2019. Shipments were driven by its upgraded A and M series (A50s, A30s, A20s and M30s). This is the first time Samsung transitioned to a completely new portfolio, targeting different channels (offline with A series and online with M series). However, it needs to double-down to keep any momentum going,” Counterpoint Research said.

Data show that Samsung has been facing stiff competition from Vivo since April-June 2019 as the Chinese handset maker upped its ante through aggressive online sales and marketing strategy, and introduced an array of attractive discounts and schemes.

The BBK Group, which is the combined holding company of Oppo, Vivo, Realme and OnePlus, now controls four of the top 5 smartphone brands in India by market share. During the April-June 2019 (CY) quarter, it captured the top spot in the domestic market, for the first time, with a combined share
of 30%.

Xiaomi grew 7% YoY in Q4 2019 and 5% YoY in 2019 driven by expansion in offline channels and strong performance of Redmi Note series. India is now the biggest market for the company, surpassing its home market, China, in 2019.

“However, the growth rate has declined to single-digit as Xiaomi is now serving a much larger installed base in India.
Hence, 2020 will require specific strategies related to user retention and acquisition, respectively,” Counterpoint Research said.

Vivo grew 76% YoY in 2019 and 134% YoY in Q4 2019 driven by good performance of its budget segment series. Also, by successfully pivoting to online and aggressively positioning the S series in offline segment with new features, it managed to make a dent in the Rs 15,000-Rs 20,000 segment.

2019 ended on a positive note for India as the domestic smartphone market surpassed the US for the first time on an annual basis, becoming the second-largest smartphone market globally, with 158 million shipments. “This is due to growth of mid-tier segment where Chinese brands aggressively introduced many flagship-grade features and capabilities to capture demand coming from users looking to upgrade from their first or second smartphone.

Additionally, online channels became the preferred selling platforms to introduce these products faster into the market,” Counterpoint explained.

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