NEW Delhi : Chinese smartphone makers Xiaomi, Oppo, Realme and Vivo continue to dominate the Indian market in 2022, despite tighter scrutiny by regulatory and tax authorities. However, the cautious approach of some of these brands could cause competitors, mainly global brands Samsung, Apple, Nokia and Nothing, to capture a larger market share by 2023, the industry observers said.
According to data from two research firms shared with mintChinese brands continued to hold the majority of market share in the smartphone segment last year, with sales falling only slightly from 2021.
TechArc says the share of Chinese companies in India was 68.5% in December, compared with 71% in December 2021, while Counterpoint Research says their share is just one percentage point lower. January-October 2022 to 75% from 76% the year before.
Faisal Kawoosa, founder of TechArc said, “The weakening of the R brands—Redmi and Realme—will affect the Chinese brand market share in 2023, and we expect Samsung’s strong comeback in the global market. online space thanks to the M series has performed well”. He said that the target market of Chinese brands has moved beyond entry-level and basic smartphones, into the high-end and luxury segments, which may lead to a shift in market share to brands. global brand.
“Their market share could decline in 2023 as these brands will be cautious in their approach and the competition will become stiff and win over,” said Prachir Singh, senior research analyst at Counterpoint Research. take market share”.
This is because the government has increased scrutiny of Chinese technology and has banned some Chinese applications following geopolitical tensions between the two countries.
The Judgment Execution Department has seized $456 crore from 119 bank accounts of Vivo India under anti-money laundering rules, while Directorate of Revenue Intelligence has given clear notice about Vivo India evading customs duties on $2,217 crore, and requested $4,389 crore from Oppo India for allegedly evading customs duties.
Xiaomi is also facing an ED investigation for violating its foreign exchange and asset value regulations $5,551 crore was seized in May. Separately, the income tax authorities have issued an order to seize the deposit account worth $3,700 crore in August. Xiaomi has moved the court to challenge the order.
However, despite the unfavorable circumstances, Chinese brands will stay strong as there are no more strong competitors besides Samsung which has maintained the No. 2 position with a market share of 16-20% since January 2021. .
According to TechArc data, Indian brands like Lava and In had a very small market share of 1.5% as of December, down from 2% in December 2021. Samsung is the only global player that is not The Chinese in the group have a significant share of the market, Singh said, as Indian players are absent in this space. “Additionally, the focus of some brands has shifted from the entry-level segment by volume to the high-priced segment.”
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