Samsung’s Falling Smartphone Market Share in India: What Went Wrong?

Samsung, once the leading smartphone brand in India, is facing a steady decline in its market share, challenged not only by rising Chinese brands like Oppo and Vivo but also by the growing presence of Apple and Indian brands like Lava. 

The South Korean giant is facing problems because of its pricing, inventory, retail conflicts, and shifting consumer preferences, causing it to lose ground in the world’s fastest-growing smartphone market.

Why Samsung Is Losing Ground in India

Latest data from Counterpoint Research highlights these changes clearly. Vivo currently leads the market with a 24% share as of Q3 2025, while Oppo and Xiaomi have 16% and 13%, respectively. 

Apple’s market share has steadily increased to 9%, reflecting its growing appeal among Indian consumers. Meanwhile, Samsung’s share has dropped to 13%, marking its lowest point in recent years.

Ironically, Samsung has a massive cost advantage over rivals due to its in-house manufacturing of displays, chips, and other components. Yet, in recent times it “rarely makes true value-for-money phones” in the budget and mid-range segments. 

X’s popular leaker Ice Universe warned in November 2025 of a “foregone conclusion” decline, with “core users leaving in large numbers,” leaving Samsung as a “replaceable brand” propped up by “superficial marketing.” In India, this is visible in stagnant innovation ambition under leadership like TM Roh.

Budget and mid-range phones such as the current Galaxy M56, M36, A26, F07, M16, and more are often overpriced, offering average build quality, older processors, and buggy One UI software. While One UI works well on premium devices, it is sluggish and bloated on budget models, especially those under Rs 20000. 

Pre-installed apps, ads through Glance, and excessive bloatware make the software experience more troublesome. Recently launched models like the Galaxy A17 use outdated hardware, such as the two-year-old Exynos 1330 chipset, further hurting performance.

This has been weak, particularly for its A series. Phones like the Galaxy A36 and A56 fail to match what competitors like Vivo and Oppo offer in terms of features, design, and pricing, causing consumers to favor rivals. 

This makes Vivo and Oppo not only outperform Samsung offline but also excel in marketing strategies, creating strong brand visibility and aspirational appeal, which reinforces their market dominance.

Samsung’s decline results from a combination of internal and market factors also. Its focus on premium models like the flagship S25 Ultra and fan edition devices has faced increasing challenges, as both Chinese brands and Apple make aggressive moves in the premium segment. 

Like Vivo, OPPO, Realme, and Moto continue to dominate budget and mid-range categories with competitively priced and well-designed phones Apple has also carved out a niche for itself among aspirational buyers who prioritize build quality, brand value, and ecosystem integration, resulting in the iPhone 16 being the best-selling smartphone in 2025 worldwide, and India is the key market for it.

Apple’s growth in India is supported by multiple factors. Increasing availability of older iPhone models at more affordable prices has broadened its consumer base. Apple’s focus on premium features, brand loyalty, and a seamless ecosystem with services like iCloud and AppleCare+ attracts buyers willing to invest in long-term value. Expanding local manufacturing helps manage prices and aligns with government initiatives supporting domestic production.

Pricing has also been a major issue for Samsung—its newer models in low- to mid-range segments are priced higher than expected, limiting sales volume. 

With only about 6% of its portfolio in the sub-Rs 10,000 segment, compared to Xiaomi’s 18%, Samsung has lost significant volume share. Inventory management challenges, including slow clearance of older stock, have added to the company’s problems.

Offline retailer conflicts have also aggravated Samsung’s decline. Its pricing strategies favor online sales, reducing offline margins and frustrating retailers. 

Earlier, the All-India Mobile Retailer Association (AIMRA) voiced serious concerns about inconsistent pricing, low margins, and lack of support, warning that continued neglect of offline channels could push Samsung’s market share below 10%.

Samsung’s internal challenges add to its woes. Around 30 senior executives in retail, marketing, and business development have left in the past year, many joining competitors like Xiaomi, slowing strategic responses to the fast-evolving market. 

Consumer preferences have also shifted toward color, material, and finish, areas where Apple and Chinese brands have invested heavily. Samsung’s budget and mid-range phones have lagged in build, performance, and software experience.

In contrast, Vivo’s rise, powered by its popular T (T4X, T4), V (V50, V60), and X (X200, X300, and Fan Edition devices) series and entry into foldable phones, challenges Samsung directly in the premium, mid-range, and budget segments. 

Both Vivo and Oppo’s strong marketing campaigns, combined with offline dominance, have created a significant advantage over Samsung in visibility and consumer perception. Xiaomi, while strong in affordable phones, is moving upmarket with high-end models co-developed with Leica. 

Earlier in 2024, market research firms IDC and Counterpoint gave the signs of the shift. Samsung’s smartphone shipments dropped 15.4% in Q2 2024, marking its third consecutive quarterly decline. Its value market share fell from 23% to 16%, highlighting its struggles. 

Therefore, analysts recommended that Samsung urgently needs to recalibrate pricing, strengthen offline relationships, improve software quality, and focus on delivering value-for-money devices in the budget and mid-range segments.

As feedback, offline retailers also emphasize the importance of physical stores, where consumers can experience devices firsthand before buying. Apple’s expanding network of premium stores contrasts sharply with Samsung’s strained ties with retailers, affecting sales and brand loyalty.

Looking ahead, Samsung must address these multiple challenges to reclaim market share. Improving pricing competitiveness, enhancing product design and software experience, rebuilding retailer trust, and sharpening focus on the premium segment are crucial steps. 

India’s smartphone market is rapidly evolving, and Samsung’s future depends on how well it adapts to changing consumer demands, tastes, and competitive pressures. 

With Apple growing steadily and Chinese brands aggressively pursuing both offline and online segments, Samsung cannot just rely on past strengths like better service, brand value, and old legacy—it must innovate on multiple fronts to maintain relevance.

Exit mobile version