Earlier this month we reported that Samsung had lost the number one spot in China as local Xiaomi overtook them with a reported 14% market share, the Korean electronics giant dropped to 12%.
Samsung has had a struggling quarter as world wide market share declined, so did revenue and profits. As we pointed out before, Samsung is especially having problems to compete in the low- and mid-range market segment. This is how they lost the top spot to home grown Xiaomi in China and we might just see the same happing in India where Micromax is gaining ground on Samsung quickly.
Research firm IDC has just released the latest numbers for India and here is what they said:
“While Samsung has held on to its leadership position in the market, it is noteworthy that Micromax is growing faster. Samsung needs to continue to address the low-end of the market aggressively, and also needs a blockbuster product at
the high end to regain momentum.”
Ranking Overall Handset Market Share:
1. Samsung – 17% (-3%)
2. Micromax – 14% (+1%)
3. Nokia – 10%
Ranking Smartphone Market Share:
1. Samsung – 29% (-6%)
2. Micromax – 18% (+3%)
3. Karbonn- 8%
Looking at the quarterly growth of Mircomax and how quickly Samsung is declining, they might have to give up the top spot as early as next quarter.
And more competition is on its way: Motorola didn’t even show up in the first quarter, now they have managed to grab 5% of the total market share and sold over 1 million units right after launch according to IDC.
Xiaomi is also planning to enter the Indian market with a smartphone in the $50 range. Nokia has sold more than 12 million units of the $50 Lumia 520 and just recently released the Nokia 130 which is priced at $25.
Samsung is going to have to make a decision here, are they going to cut margins, fight for overall market share and volume or leave this market to other vendors so they can focus on the high end segment where the margins are still high.