Xiaomi Experiences Significant Downfall in India, Q1 2025 Shipments Dip by 38%, Amidst a Broader Market Slump of 8%
The Indian smartphone market has witness a 8% decrease in overall shipments during the first quarter of 2025, with Xiaomi, formerly the market leader, facing the brunt of this decline. The Chinese tech giant's shipments have seen a sharp drop of 38% year-on-year in Q1 2025, marking the steepest fall among competitors.
Xiaomi shipped 4 million units in Q1 2025 compared to 6.4 million in the same period of 2024, resulting in a drop in its market share from 18% to 12%. The decrease in sales occurred despite the launch of two significant product lines, the Redmi Note 14 series and the flagship Xiaomi 15, during the first quarter of the year.
According to a report, the early launch of the Redmi Note 14 series failed to generate significant traction due to high inventory levels and conservative sentiment among sales channels. However, the Redmi 14C 5G managed to gain some ground in the budget segment but could not offset the overall slowdown.
Sanyam Chaurasia, Senior Analyst at Canalys, stated, "2025 is shaping up to be another channel-driven year. With organic demand still weak, Xiaomi's traditional strength in the offline and budget sectors was challenged by tighter sell-out strategies and more aggressive moves from rivals."
While Xiaomi stumbled, competitors such as vivo topped the list with 7 million units shipped and a 22% market share. Vivo's growth can be attributed to executing well across price tiers and successful campaigns based on its ZEISS-backed V50 series, resulting in a 13% year-on-year increase.
Samsung secured second place with 5.1 million units shipped, despite a 23% year-on-year decline in total shipments, whereas Realme and Oppo (excluding OnePlus) both experienced positive yearly growth of 3% and 5% respectively.
In a previous report, IDC data revealed that Xiaomi had slipped to seventh place in the Indian smartphone market due to poor offline retail performance, high inventory levels from previous quarters, and limited new product launches. Xiaomi's lack of clear brand positioning, involving a balance between the budget and premium segments, has reportedly harmed its image, with its sub-brand Poco also facing criticism from online retailers.
However, leadership changes and ongoing scrutiny of alleged foreign exchange violations have adversely impacted Xiaomi's situation. Despite the challenges, the company continues its efforts to regain its position in the Indian smartphone market.
Finance experts are closely watching Xiaomi's struggle in the Indian business sector, particularly in the technology industry. Amidst stiff competition, Xiaomi's market share in the smartphone market shrank from 18% to 12% during Q1 2025, with a decline in shipments from 6.4 million in 2024 to 4 million in 2025.
