Samsung slips back in China and India in the face of local opposition

Samsung is on the verge of being outflanked in two key Asian markets with local manufacturers that cater to home tastes stealing a march on the Korean electronics behemoth.

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China’s Xiaomi and India’s Micromax Informatics have both succeeded in topping the market in their respective countries during the second quarter and it meant the world’s largest smartphone manufacturer settling for second spot.

“Xiaomi and other smaller players in India are catching up very fast,” Cho Woo Hyung, a Seoul-based analyst at Daewoo Securities Co, said, according to Bloomberg. “If you lose market share, it’s hard to get it back, so Samsung will continue to churn out as many handsets as possible to retain its dominant share in the smartphone market.”

Xiaomi’s lead came from the 15 million devices it shipped during Q2 2014 that was enough for a healthy 14 per cent share of the market whereas Samsung could only ship 13.2 million smartphones for 12 per cent of the market.

Canalys’ figures showed that China was worth 108.5 million smartphone shipments in the same timeframe, which represents around 37 per cent of the worldwide total and the top 10 vendors is made up of home grown firms except Samsung and Apple.

Over in India, Micromax’s sales were enough for 16.6 per cent of all mobile phone shipments in Q2 2014 and that rose above Samsung’s 14.4 per cent in second, with Nokia snapping up third position, according to Counterpoint Research.

India’s situation is similar to China in that two thirds of the total phone shipments are made by Indian firms and over half of all smartphone sales are accounted for by Indian companies.

Related: Barra wants Xiaomi to be next Apple or Google

Samsung is battling hard to stay at the head of the global mobile phone market and a set of disappointing results posted last week meant a smallest quarterly profit in two years.