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Chinese brands’ India share fell to 68% in July-September as chip costs hit budget models, while Lava and Ai+ gained.
Chinese smartphone makers are losing share in India as record-high memory chip prices force them to scale back budget models. The shift is giving domestic rivals an opening in one of the world’s most price-sensitive markets.
Market share slipsResearch firm Omdia estimates that Chinese brands held 68 per cent of India’s smartphone market in the July-September quarter. That is down from 71 per cent in the previous quarter and 75 per cent a year earlier. Counterpoint Research puts their share at 67 per cent, the lowest since the first quarter of 2019.
Vivo, Oppo and Xiaomi are among the major brands cutting back on affordable models and trimming specifications to manage rising costs. The move threatens their traditional strength in budget phones, and the timing is awkward. Demand for such handsets usually rises ahead of Diwali.
Indian brands gain
Domestic players such as Lava and Ai+ are trying to take advantage. Counterpoint data shows the combined share of Indian brands rose from 2% a year earlier to 7% in the quarter ended September 30. That is their highest since October-December 2018.
Counterpoint research director Tarun Pathak said Ai+ and Lava accounted for nearly 95% of the contribution from Indian brands. Newer entrants Mivi and Boltt make up the rest. Ai+, which launched in July 2025, shipped more than four times its year-earlier volume in the latest quarter.
Premium brands benefit
Samsung and Apple, which focus on the premium end, are also gaining ground. Rising component costs are squeezing manufacturers that work on thin margins, and premium players are better placed to absorb them.
Shipments fall sharply
Overall demand is weaker. India’s smartphone shipments fell to 35.8 million units in the quarter, the lowest third-quarter volume in a decade. Omdia estimated a 26 per cent year-on-year decline, while Counterpoint reported a 20% drop. Both point to mounting pressure on demand as handset prices rise.
The latest figures show how component costs are reshaping the Indian market. Brands built on low prices have less room to protect margins without cutting features or models. How quickly they adjust, and whether domestic labels can hold their gains, will be worth watching in the coming quarters.
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