Xiaomi market share crashes to 13% in India amid inventory woes, while rivals hold steady: Counterpoint

Xiaomi

Xiaomi’s market share in India — including its sub-brand Poco — plunged to 13% in Q1 2025 from 19% a year earlier, as sluggish demand and elevated inventory levels triggered its steepest decline yet, according to Counterpoint Research. In contrast, key rivals largely held steady, maintaining their positions in a challenging quarter.

The Chinese smartphone maker's shipments tumble during the January–March quarter, unable to generate traction for its new launches amid bloated inventory levels, the agency said in its latest report.

“Xiaomi saw a decline in shipments during the quarter, primarily due to higher inventory levels. Despite launching the Redmi Note 14 series, Redmi 14C 5G and A4 5G, these models witnessed lower-than-expected consumer traction. This prompted the brand to adopt a more cautious approach, focusing on stock clearance,” the market tracker said in its report.

A separate report from Canalys, dated April 21, mirrored the trend. It estimated that Xiaomi’s shipments — including those of sub-brand Poco — fell by a staggering 38%, pulling its market share down to 12% from 18% in Q1 2024, the steepest drop among major players.

In contrast, rivals managed to weather the quarter more effectively. Samsung’s share slipped just one percentage point to 17%, securing second place. Vivo, including iQoo shipments, led the market with a 22% share, while Oppo, including OnePlus shipments, held steady at third with 15%. Realme edged up one point to 11%.

Apple, meanwhile, continued to surge. The iPhone maker posted a 29% year-on-year volume growth in India, its best-ever Q1, reinforcing its dominance in the premium segment. The strong performance underscores rising consumer preference for high-end devices, with Apple also leading the market by value.

Overall, India’s smartphone shipments in Q1 2025 declined 7% year-over-year, as the market struggled with surplus stock and a sharp 26% decline in new launches.

“In Q1 2025, India’s smartphone market shifted its focus towards preparing for more sustainable and structured growth. Key brands, dealing with high inventory levels, prioritized clearing excess stock to stabilize operations and set a stronger foundation for the remainder of the year,” said senior research analyst Prachir Singh.

Despite the inventory correction, demand for ultra-premium smartphones remained resilient.

“As a result, the ultra-premium segment (>INR 45,000) saw 15% YoY growth, while the average selling price (ASP) increased at an 11% CAGR post-COVID, highlighting a shift toward premium devices. This continued premiumization trend was further supported by growing affordability and expanding financing options, which made high-end devices accessible to a broader consumer base,” Singh said.

However, the budget segment continued to lag, as consumer sentiment remained cautious despite low inflation and government-driven efforts to boost spending.

Among emerging brands, Nothing stood out as the fastest-growing, with 156% YoY growth powered by its newly launched 3a series — marking its fifth consecutive quarter at the top of the growth charts. Motorola followed with 59% growth, driven by strong offline traction.

On the chipset front, MediaTek led the market with a 45% share, trailed by Qualcomm at 32%.

5G adoption also reached a new high. According to Counterpoint, 5G smartphones accounted for a record 87% of total shipments in Q1 2025, with the sub-Rs 10,000 segment experiencing four-digit year-over-year (Yoy) growth, a sign that mass-market adoption is accelerating rapidly, as per Counterpoint.