Listen to this article in summarized format
Loading...
××
Subscribe to
Unlock AI Briefing and Premium Content
New Year Offer 24 Hours Left
Subscribe NowAlready a member? Sign In
What's Included
- Exclusive Stories
- Daily ePaper Access
- Smart Market Tools
- Curated Investment Ideas
- Ad-lite Experience
Subscription
Kolkata: Sales of Chinese smartphone brands Xiaomi, Oppo, OnePlus and Realme fell for the first time in India last fiscal year, as their mainstay entry- to mid-level market shrank, with consumers increasingly gravitating towards premium handsets.
Their performance pulled down the combined revenue of the nine largest Chinese electronics firms operating in India by 4.5% in FY25, show data from regulatory filings from last month. This was also the first time the Chinese brigade recorded a revenue contraction in India. The previous year, they had posted a 42% expansion.
The value share of handsets priced under ₹20,000 fell to 29% in India's smartphone market in 2025, from 38% two years earlier, said Tarun Pathak, director of research at market intelligence firm Counterpoint Research.
"This has impacted Chinese brands in the most competitive price segment," he noted.
Industry analysts and executives indicated that the slowdown in the mass market and mid-segment might persist, even as demand strengthens for higher-priced handsets. Prices, meanwhile, are increasing across the smartphone segment, driven by a sharp rise in the cost of memory chips.
The weak performance by the smartphone majors dragged down the overall consolidated sales of Chinese electronics brands, given the segment’s dominant contribution to total revenue.
Apple and Samsung, with their premium offerings, gained value market share at the cost of top Chinese brands, in sync with the shift in consumption.
Pathak said the premium smartphone market (priced more than ₹45,000) posted strong growth; its retail value share increased to 47% in 2025 from 36% in 2023. “This has benefitted Apple and Samsung,” he said.
iPhone maker Apple’s sales in India grew 18% in FY25 to Rs 79,378 crore, while Samsung posted a 12% increase to Rs 1.11 lakh crore. Korean appliance maker LG Electronics too grew 14% in FY25.
Mohit Yadav, founder at business intelligence consultancy AltInfo, who analysed the RoC filings, said Vivo grew almost the same rate as Samsung, while the rest of the Chinese pack lost ground. “The market is moving towards premium and deeper offline retail, and Vivo is the only Chinese brand whose growth numbers suggest it is keeping pace with that shift,” he said.
Despite the decline in sales, Indian consumers spent nearly Rs 1.65 lakh crore on electronic products from the nine largest Chinese brands in FY25, compared with Rs 1.72 lakh crore in the previous financial year, RoC data showed.
Xiaomi and Realme did not attribute any reasons in the filings, while OnePlus recently told ET that short-term shifts in sales and profit “were driven by essential investments in our systems, compliance, and infrastructure—foundational steps that ensure long-term, sustainable growth”.
The companies said in the filings that they expected business volumes to improve in the current financial year. However, analysts expect the market to become tough for these Chinese smartphone brands in India.
Input cost pressures due to rise in component costs (especially memory) and a depreciating rupee are expected to result in rising device prices which has already started, Counterpoint’s Pathak said.
“This will further lower the demand in the lower price segments, where device affordability remains low. This trend is expected to hit the Chinese brands, which take the lion’s share of the market in these price bands,” he said.
Their performance pulled down the combined revenue of the nine largest Chinese electronics firms operating in India by 4.5% in FY25, show data from regulatory filings from last month. This was also the first time the Chinese brigade recorded a revenue contraction in India. The previous year, they had posted a 42% expansion.
The value share of handsets priced under ₹20,000 fell to 29% in India's smartphone market in 2025, from 38% two years earlier, said Tarun Pathak, director of research at market intelligence firm Counterpoint Research.
"This has impacted Chinese brands in the most competitive price segment," he noted.
Prices to Rise
The retail value share of Chinese smartphone brands, which also include the likes of Vivo and Lenovo-owned Motorola, in India declined from 54% in 2023 to 48% in 2025, according to Counterpoint. In volume terms, however, their market share remained dominant, ranging between 73% and 75%.The weak performance by the smartphone majors dragged down the overall consolidated sales of Chinese electronics brands, given the segment’s dominant contribution to total revenue.
Premium Play
Outside smartphones, the broader electronics segment reported healthy gains, led by Haier, Lenovo and Midea, amid strong traction in premium appliances. Chinese handset brand Vivo, which has several premium models in its portfolio, too posted strong growth with revenue expanding 11% from the prior fiscal.Apple and Samsung, with their premium offerings, gained value market share at the cost of top Chinese brands, in sync with the shift in consumption.
Pathak said the premium smartphone market (priced more than ₹45,000) posted strong growth; its retail value share increased to 47% in 2025 from 36% in 2023. “This has benefitted Apple and Samsung,” he said.
iPhone maker Apple’s sales in India grew 18% in FY25 to Rs 79,378 crore, while Samsung posted a 12% increase to Rs 1.11 lakh crore. Korean appliance maker LG Electronics too grew 14% in FY25.
Mohit Yadav, founder at business intelligence consultancy AltInfo, who analysed the RoC filings, said Vivo grew almost the same rate as Samsung, while the rest of the Chinese pack lost ground. “The market is moving towards premium and deeper offline retail, and Vivo is the only Chinese brand whose growth numbers suggest it is keeping pace with that shift,” he said.
Despite the decline in sales, Indian consumers spent nearly Rs 1.65 lakh crore on electronic products from the nine largest Chinese brands in FY25, compared with Rs 1.72 lakh crore in the previous financial year, RoC data showed.
Tougher Market
Oppo Mobiles India said in its regulatory filing that sales declined by 38% in FY25 “primarily due to lower business volumes during the year”. Profit too declined due to reduced revenue, it said.Xiaomi and Realme did not attribute any reasons in the filings, while OnePlus recently told ET that short-term shifts in sales and profit “were driven by essential investments in our systems, compliance, and infrastructure—foundational steps that ensure long-term, sustainable growth”.
The companies said in the filings that they expected business volumes to improve in the current financial year. However, analysts expect the market to become tough for these Chinese smartphone brands in India.
Input cost pressures due to rise in component costs (especially memory) and a depreciating rupee are expected to result in rising device prices which has already started, Counterpoint’s Pathak said.
“This will further lower the demand in the lower price segments, where device affordability remains low. This trend is expected to hit the Chinese brands, which take the lion’s share of the market in these price bands,” he said.
