Xiaomi, Oppo, Realme, OnePlus Post First India Revenue Decline Amid Shift Towards Premium Segment, Favoring Apple and Samsung: Report

Indian Smartphone Market Slows Down for Chinese Brands

The Indian smartphone market has experienced a significant slowdown for Chinese brands, with sales of Xiaomi, Oppo, OnePlus, and Realme declining for the first time in the last fiscal year (FY25). According to data reviewed by The Economic Times, the combined revenue of the nine largest Chinese electronics companies operating in India slipped 4.5% in FY25, marking the first annual revenue contraction for the group in the country.

The shift in consumer preference has been notable, with Indian buyers increasingly upgrading to premium devices. The value share of smartphones priced below Rs 20,000 dropped to 29% in 2025, down from 38% two years earlier. This has hurt Chinese brands the most, as they dominate the highly competitive mass-market segment.

Counterpoint Research data shows that the retail value share of Chinese smartphone brands, including Vivo and Lenovo-owned Motorola, fell from 54% in 2023 to 48% in 2025. However, in volume terms, these brands continue to command a dominant 73-75% share of shipments.

Read also: Expert Portfolio Manager Raja Venkatraman Names Top Investment Picks for June 4

Industry executives and analysts have indicated that weakness in the mass and mid-tier segments may persist even as demand strengthens for higher-priced devices. Rising component costs, particularly memory chips, have pushed up smartphone prices across categories.

Vivo stood out among smartphone makers, with revenue rising 11% in FY25, supported by a stronger premium portfolio. Apple and Samsung gained value market share in line with the premiumisation trend, with the premium smartphone segment expanding significantly.

Apple's India sales rose 18% in FY25 to Rs 79,378 crore, while Samsung reported a 12% increase to Rs 1.11 lakh crore. LG Electronics also posted 14% growth during the fiscal year.

The market is shifting towards premium offerings and deeper offline retail expansion, with Vivo appearing better aligned to that transition. Despite the slowdown, Indian consumers spent nearly Rs 1.65 lakh crore on products from the nine largest Chinese brands in FY25, down from Rs 1.72 lakh crore in the previous year.

Read also: MarketSmith India's 4 June Stock Recommendations

Companies have acknowledged the challenges in their filings, with Oppo Mobiles India stating that its sales fell 38% in FY25 due to lower business volumes. Xiaomi and Realme did not specify reasons for the decline, while OnePlus linked short-term fluctuations in sales and profit to investments in systems, compliance, and infrastructure aimed at long-term growth.