Chinese Smartphone Giants Report First India Sales Decline in Nearly a Decade
In a significant market shift, nine of the largest Chinese electronics companies, including major players like Xiaomi, Oppo, OnePlus, and Realme, have reported a fall in their India sales for the first time in nearly a decade. This development, based on regulatory filings analyzed by the Economic Times, underscores a broader trend where consumer demand is moving away from entry-level and mid-range smartphones toward premium devices.
Revenue Decline and Market Dynamics
The analysis reveals that the combined revenue of these nine Chinese firms declined by 4.5% during the financial year 2025. This marks a sharp contrast to the previous fiscal year, which saw a record 42% growth. The downturn highlights the challenges faced by Chinese brands in a rapidly evolving market landscape.
Concurrently, the premium smartphone segment, defined as devices priced above Rs 45,000, has experienced substantial growth. The retail value share of this segment increased from 36% in 2023 to 47% in 2025, indicating a strong consumer preference for high-end models.
Beneficiaries of the Premium Shift
This shift toward premium smartphones has notably benefited Apple and Samsung. Apple's India sales surged by 18% to Rs 79,378 crore in FY25, while Samsung's revenue grew by 12% to Rs 1.11 lakh crore. These gains reflect the increasing appetite for premium devices among Indian consumers, who are willing to invest more in advanced technology and features.
Impact on Lower-Price Segments
Market data from Counterpoint Research shows that the value share of smartphones priced below Rs 20,000 has dropped from 38% two years ago to 29% in 2025. Tarun Pathak, director of research at Counterpoint Research, commented, "This has impacted Chinese brands in the most competitive price segment." This segment has traditionally been dominated by Chinese manufacturers, making the decline particularly impactful.
Data further indicates that the retail value share of Chinese smartphone brands, including Vivo and Lenovo-owned Motorola, fell from 54% in 2023 to 48% in 2025. However, in volume terms, their share remained robust at 73–75%, suggesting that while they continue to sell large quantities of phones, higher-priced models are increasingly driving overall market value.
Future Price Trends and Challenges
The Economic Times report quotes industry experts who predict that smartphone prices are likely to rise soon due to higher component costs, especially for memory chips, and the impact of a weaker rupee. Analysts note that rising prices may further reduce demand in lower price bands, which could continue to disproportionately affect Chinese brands compared to their premium-focused competitors.
This evolving market scenario poses significant challenges for Chinese smartphone makers as they navigate shifting consumer preferences and economic pressures. The trend toward premiumization is reshaping the competitive landscape in India's smartphone industry, with long-term implications for market share and revenue strategies.
