Samsung Electronics, Apple, and Chinese manufacturers are competing for market share in the Indian smartphone market. India, the second-largest smartphone market globally, is implementing pro-manufacturer policies, such as reducing import tariffs on mobile phones. As domestic product preference strengthens in China's largest smartphone market, India is emerging as a battleground.
◇ Samsung, Apple, and China expand stores and promotions in India
According to the industry on the 24th, Samsung Electronics announced it would double the number of stores in India this month. Currently, Samsung Electronics has 400 smartphone retail stores in India and plans to expand this to 800 by reaching out to rural areas. The stores will allow consumers to experience various products, including Galaxy smartphones and tablets.
Apple conducted marketing strategies last December by offering cashback for purchasing iPhones in India and providing interest-free installment payments for card transactions. Through this, Apple achieved a 4% market share in the Indian smartphone market in the fourth quarter of last year (according to Canalys), entering the top five for the first time. This marks an increase of 1.1 percentage points from the previous year (2.9%). Apple is also increasing its local production to conquer the Indian market, assembling the iPhone 16 series in India since last year and planning to open new stores in regions like Bengaluru and Pune.
Xiaomi plans to launch the budget smartphone Redmi Note 14C in India early this year. It features a 50-megapixel rear camera and supports dual SIM 5G functionality. By leveraging dual SIM functionality, users can use two different plans with one device. Beginning this month, Xiaomi has also partnered with local commerce platforms to offer a service that delivers smartphones within 10 minutes. The Chinese manufacturer OnePlus will also release its flagship product, the "OnePlus 13" series, priced around 800,000 won in India, applying its own operating system (OS).
◇ India emerges as a major global smartphone market
According to market research firm Counterpoint Research, the Indian smartphone market ranked second in sales volume behind China in the third quarter of last year, and third in revenue. The Indian smartphone market is expected to grow to a scale of $50 billion (approximately 71.555 trillion won) this year, with the average selling price (ASP) of smartphones projected to exceed $300 for the first time due to the trend toward premiumization. The ASP denotes the average price of an item sold, indicating that a higher figure suggests more high-priced products were sold.
The Indian government reduced the import tariff on mobile phones and key components from 20% to 15% last year. This is part of the plan to establish large-scale smartphone manufacturing facilities in India. Thus, foreign manufacturers can achieve cost savings when producing smartphones elsewhere and importing them into India.
Apple, Samsung, Xiaomi, and others are fiercely competing in the global smartphone market. According to market research firm IDC, Apple secured the top position in the global smartphone market last year with an 18.7% share. Samsung Electronics followed in second place with an 18% share, and Xiaomi ranked third with 13.6%. In the Indian market, Chinese manufacturers have a strong presence. In the fourth quarter of last year, Vivo held the top position in the Indian market with a 20% share, while Xiaomi accounted for 15%. Samsung Electronics also held a 15% share.
Park Kang-ho, a research analyst at DAISHIN SECURITIES, noted, "As the average selling price (ASP) in the Indian market, which was primarily focused on low-cost smartphones, gradually rises, it is emerging as a market that can secure both revenue and shipment volume. Therefore, manufacturers' strategies for the Indian market are likely to accelerate."