Xiaomi beats Samsung to be top phone company in India: 5 reasons why it is number 1

The unthinkable has happened. At least, according to two market research agencies. Counterpoint and Canalys that track smartphone market in India have said that Xiaomi was the top phone seller here in the latest quarter. Yearly -- and that is the whole 2017 -- Samsung sold the highest number of phones but in the latest quarter, Xiaomi edged past the Korean company.

According to Counterpoint, Xiaomi managed to get 25 per cent market share in the Q4, 2014 in the Indian smartphone market, 2 per cent more than Samsung's 23 per cent. In the same duration, according Canalys Xiaomi had a market share of 27 per cent, again 2 per cent more than Samsung's 25 per cent.

Now the reports are from two research agencies and we know that data of different research agencies can vary. This is why Samsung is disputing these reports and continues to claim that it is still number 1 in the country. In a statement, the company says: "Samsung is India's number 1 smartphone company by a distance. As per GfK, which tracks sales to end consumers, in the last (November) quarter Samsung had a 45 per cent value market share and 40 per cent volume market share. Samsung is a full range player and leads the smartphone business across every segment of the India market in 2017."

If you ask us, we think both Xiaomi and Samsung are right in their assertions. And while it is true that the position of these two companies may change by a point or two on the leadership board, equally important is the fact that Xiaomi is now seriously challenging Samsung's once undisputed status as the top smartphone company in India. So how is it Xiaomi has become number 1 smartphone company in India (for now according to two market research firms)? The biggest reason is the aggressive pricing from Xiaomi. But that is not all.

REASON 1: REDMI NOTE AND REDMI

The Redmi phones are the number 1 reason why Xiaomi has managed to beat or match Samsung in the market. In 2017, we saw the Redmi Note 4 and the Redmi 5A rule the budget market in India. Both phones cost under Rs 15,000 and that means they were on the radar of most of the smartphone shopper in India. Yes, the iPhone is very popular in India and a lot of people lust after the Galaxy S8. But in the end buy a cheaper Rs 15,000 or Rs 10,000 because that is not only more affordable but also a wiser choice. And at these price points, for a long time the Redmi Note 4 ruled in India. Meanwhile, at the entry level, the Redmi 5A was preferred choice for a lot of consumers with its price of around Rs 7,000.

Both the Redmi Note 4 and the Redmi 5A -- along with other Xiaomi phones in the same price bracket -- offered consumers well designed phones with metal bodies, great hardware, functional MIUI software at prices that were more than reasonable.

REASON 2: EASY AVAILABILITY

In the last few months, the availability of Xiaomi phones has improved significantly. The Redmi and Mi phones were always pretty good and popular but buying them was also a hassle most of the time. Earlier, they were rarely in stock. And they were available only at a couple of e-commerce websites. This has started changing in the last few months. The Xiaomi supply chain is finally good enough to sell millions of phones within days and not months. The phones, even the popular ones like the Redmi Note 4, are now almost always in stock. With the stock improving, Xiaomi is selling truckloads of them.

REASON 3: XIAOMI PRICES, SUPERB PRICES

Compared to how Samsung prices its phones, the Xiaomi phones are almost 30 to 40 per cent cheaper for similar hardware. This is a significant difference in the price. At Rs 11,000 Samsung will be giving its Galaxy phone buyers an entry-level processor whereas Xiaomi will have a fairly fast mid-range processor in the Redmi phone. At the same price, may be some other company will offer a phone with plastic body whereas Xiaomi will give its buyers a phone that not only has a slick metal body but also a gorgeous curved glass layer on top of the screen. Just look at design and finish of the Xiaomi Mi A1, a phone that sells for around Rs 14,000. There is nothing else out in the market -- except the Nokia 6 -- that matches its looks at this price point.

REASON 4: SAMSUNG FAILS TO PLAY SPECS WAR

Perception matters. And specs too up to an extent. But if Samsung today finds itself challenged by Xiaomi, the biggest reason for its relatively weaker market performance has to be the fact that its phones don't get into the specs war. For their price, they offer relatively boring hardware. At a time when Xiaomi and Moto phones are full of fairly capable hardware and come with slick design, Samsung tries attempts to sell its phones on the basis of its Touchwiz software. It offers lesser RAM, slower processer, fewer hardware features compared to what Xiaomi will give in a phone at the same price point. Although in the recent months, Samsung has tried to up its game somewhat we are yet to see a phone from the company that can has a price of around Rs 15,000 and can take on the likes of the Redmi Note 4 and the Mi A1.

Samsung still makes great high-end phones. The Galaxy S8, the Galaxy Note 8 are unmatched. But in the entry-level and budget market, its phones look boring and overpriced.

REASON 5: XIAOMI OFFLINE GROWS

For a long time, many consumers in India bought a Samsung phone because that is all they saw in the shop. The more cool phones, with better hardware, were all sold online and for a number of consumers, buying phones on Flipkart or Amazon wasn't an option. But in the recent months, as more and more online-only brands ventured into offline, Samsung's Galaxy J and other similar phones don't look all that appealing. Now people are buying Moto and Xiaomi phones because those phones are available in brick-and-mortar shops. And it's just the beginning. As more Redmi, OnePlus and Moto phones make their way to offline stores, the harder it will get for Samsung Galaxy J phones.