Xiaomi, once the undisputed leader in India’s smartphone market from 2017 to 2022, has now slipped to seventh place in January 2024, trailing behind Vivo, Samsung, Oppo, Apple, Realme, and Motorola, according to IDC. Excluding its sub-brand POCO, the brand is facing heavy losses, especially in the offline retail segment, where rivals like Vivo, Oppo, and Samsung dominate.
Key Reasons Behind Xiaomi’s Fall
Analysts highlight multiple reasons for Xiaomi’s drop in market share:
- Offline Struggles: Xiaomi faces difficulty competing with established offline players like Vivo and Samsung.
- Inventory Pile-Up: Excess stock from previous months has hampered new sales.
- Limited Launches: Fewer new smartphone releases in January reduced buyer interest.
- Budget Focus: Heavy focus on low-cost models (₹10,000–₹12,000) is proving ineffective as consumer preferences shift.
Xiaomi’s attempts to pivot towards the premium segment have also not delivered the desired results so far.
Identity Crisis Hurting the Brand
Experts like Ajay Sharma point out that Xiaomi is struggling with brand positioning. Once known as an affordable, mass-market brand, Xiaomi now seems to be pushing towards premium status, trying to emulate Apple — a strategy that may be confusing customers. Sharma suggests that only Samsung has successfully managed such a wide price range.
Leadership Changes and Future Plans
Amid this turmoil, Xiaomi has seen frequent leadership changes, including the resignation of its president and the appointment of new senior executives from Samsung India. Xiaomi is now focusing on a “Smartphone + IoT” strategy for 2025, planning to expand into smart home products while aiming to regain its footing in the premium smartphone category.
Legal Troubles and POCO Disputes
Xiaomi is also battling investigations for alleged foreign exchange violations and faces disputes involving its sub-brand POCO, which is accused by offline retailers of engaging in anti-competitive practices.
