Xiaomi India has reported a significant 45% year-on-year decline in its smartphone revenue for the first quarter of 2025, marking a challenging period for the company in its second-largest market by volume. Despite efforts to reposition itself in the premium smartphone segment, the company’s average selling price (ASP) decreased by 12% to $118, indicating continued dominance in the budget segment and challenges in shifting brand perception.
📉 Xiaomi’s Q1 2025 Performance: A Closer Look
- Revenue Decline: Xiaomi’s wholesale smartphone revenues in India fell from $85.3 million in Q1 2024 to $47.2 million in Q1 2025, a 45% drop.
- Shipment Volumes: The company shipped 4 million units in Q1 2025, a 38% decrease from the previous year, leading to its exit from the top five smartphone brands in India for the first time since Q3 2016.
- Market Share: Xiaomi’s market share dropped to 7.8% in Q1 2025, down from 12.8% in the same period last year, placing it sixth in the Indian smartphone market rankings. The New Indian Express
🔄 Strategic Shift and Market Challenges
Xiaomi’s attempt to move into the premium segment has faced hurdles. Despite launching higher-end models, the company’s ASP declined, suggesting that consumers still associate the brand with budget offerings. Analysts point out that a successful transition to the premium market requires more than just product launches; it necessitates a comprehensive brand overhaul and enhanced consumer engagement strategies.
🛍️ Retail Dynamics and Competitive Landscape
Xiaomi’s challenges are compounded by intensified competition in the budget segment and a lackluster response to its premium devices. Retailers have reported insufficient incentives to promote Xiaomi’s premium models, leading to decreased visibility in physical retail spaces.
Meanwhile, competitors like Vivo, Samsung, and Apple have strengthened their positions in the Indian market. Vivo led the market with a 20% share in Q1 2025, followed by Samsung at 18%, while Apple’s shipments grew by 25% year-on-year, capturing 8% of the market.
📈 Future Outlook
Xiaomi India plans to continue its focus on the premium segment, with several high-end device launches scheduled over the next 8–10 quarters. The company aims to enhance its brand perception and establish a stronger foothold in the higher price segments.
