The latest IDC numbers for the second quarter of 2018 show Xiaomi building on its lead in the country. Xiaomi overtook Samsung at the end of last year to become India's largest smartphone manufacturer, and IDC's Q2 2018 figures show the company dominating in the online space. Xiaomi accounted for over 56% of all sales in the online segment, and with the company's increased focus on the offline sector saw 33% of sales coming from retail stores.
The Indian handset market as a whole grew by 20% YoY, recording shipments of 33.5 million units. The segment also saw increased average selling prices to $167, up from $157 a year prior.
Xiaomi announced earlier in the year that the Redmi Note 5 series racked up over 5 million sales in just four months, and the Redmi 5A along with the Redmi 5 continue to do remarkably well in India. In fact, these four models by themselves made up 26% of all phones sold in India last quarter.
One out of four smartphones sold in India was a Redmi phone.
As a whole, Xiaomi accounted for 10 million shipments in Q2 2018, amassing a 29.7% market share. Samsung came in second with 8 million shipments and a market share of 23.9%, followed by Vivo at 12.6% and OPPO at 7.6%. Transsion, which owns offline-focused brands like Tecno and Infinix, came in fifth.
It's an interesting time in the Indian handset market as there are plenty of manufacturers vying for market share in each segment. Samsung in particular is facing stiff competition across categories — Xiaomi in the budget segment and OnePlus in the mid-range category — and although the South Korean company saw a healthy boost in sales from Q2 2017 (up 21%), it lost out to OnePlus in the premium category.
According to IDC, it's the budget models that deliver meaningful sales for Samsung in India, with the likes of the Galaxy J7 Nxt, Galaxy J2 2017 and Galaxy J2 2018 driving most of the volume. IDC noted an "incremental demand" for Samsung's high-end sales, but that wasn't enough to stave off OnePlus. With the Galaxy Note 9 set to make its debut in India later this month, Samsung is going for an aggressive strategy to win back sales, but only time will tell if it pays off.
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