Chinese smartphone brands lose ground in India as chip prices soar
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New Delhi: Chinese smartphone brands are losing their grip on India’s smartphone market as record-high memory chip prices force manufacturers to scale back budget models, opening the door for domestic rivals.
Technology market research firm Omdia estimates that Chinese brands accounted for 68% of the market in the July-September quarter, down from 71% in the previous quarter and 75% a year earlier. Counterpoint Research puts their share at 67%, the lowest since the first quarter of 2019.
Major Chinese manufacturers, including Vivo, Oppo and Xiaomi, are cutting back on affordable models and specifications to manage rising costs. The move threatens their traditional strength in India’s price-sensitive market, particularly ahead of Diwali, when demand for budget phones typically rises.
Indian brands such as Lava and Ai+ are seeking to capitalise on the shift. According to Counterpoint Research, domestic brands’ combined market share rose from 2% a year earlier to 7% in the quarter ended September 30, their highest level since October-December 2018.
Ai+ and Lava accounted for nearly 95% of the contribution from Indian brands, alongside newer entrants Mivi and Boltt, Counterpoint research director Tarun Pathak said. Ai+, launched in July 2025, recorded more than four times its year-earlier shipment volume in the latest quarter.
Meanwhile, premium-focused players Samsung and Apple are gaining ground as rising component costs squeeze manufacturers operating on thin margins.
India’s smartphone shipments fell to 35.8 million units in the quarter, the lowest third-quarter volume in a decade. Omdia estimated a 26% year-on-year decline, while Counterpoint Research reported a 20% drop, reflecting mounting pressure on demand as handset prices rise.