Xiaomi’s Decline in the Indian Market: What Went Wrong for the Once Leading Smartphone Brand

KKN Gurugram Desk | Xiaomi, once the undisputed leader in the Indian smartphone market, is now grappling with a significant decline in its fortunes. The Chinese smartphone maker, which dominated the Indian market for several years, is facing a dramatic drop in sales and market share. Once a favorite among budget and mid-range smartphone buyers, Xiaomi’s position in the Indian market has been weakening, and its future in the country is now uncertain. In this article, we will delve into the factors that have contributed to Xiaomi’s downfall in India, despite its initial success and dominance.

Xiaomi’s Rise in India

Xiaomi entered the Indian market in 2014, and it didn’t take long for the company to make its mark. The launch of the Redmi Note 4 in 2017 proved to be a game-changer for the company, catapulting it to the top of the Indian smartphone market. The Redmi Note 4 was a complete package with a metal body, a curved screen, HD display, and a budget-friendly price tag, which appealed to a wide range of consumers. This phone became one of the best-selling smartphones in India, and Xiaomi quickly became the number one brand in the country.

Xiaomi’s aggressive pricing strategy and online-first sales model contributed significantly to its success. The company tapped into the demand for affordable yet feature-rich smartphones, filling a gap in the market. The Poco brand, launched by Xiaomi as a sub-brand, also gained massive popularity with its budget-friendly and high-performance phones, further cementing Xiaomi’s position as the leader in the Indian smartphone market.

The Decline Begins

However, after several years of dominance, Xiaomi’s fortunes began to shift, and by 2025, the brand found itself in a difficult situation. According to reports, Xiaomi experienced a steep decline in its sales during the first quarter of 2025, with a 38% drop in its market share. From holding 20.5% of the market in June 2024, Xiaomi’s share has now fallen to just 12%, signaling a sharp and worrying decline.

This decline in market share is not just a minor dip; it reflects a larger trend that has been unfolding over the past few months. The company’s inability to adapt to changing market dynamics and consumer preferences has led to its downfall. Xiaomi’s stronghold in the mid-range and budget segments, represented by its Redmi and Poco phones, has also seen a significant loss of consumer interest.

Premium Segment Challenges

While Xiaomi has always struggled to make significant inroads into the premium segment, its attempts to break into this market have failed miserably. The launch of the Redmi K20 series, aimed at offering premium features at an affordable price, turned out to be one of Xiaomi’s biggest missteps. The company overestimated its appeal in the premium category, and the Redmi K20 series didn’t perform well in the market.

In an attempt to capture a slice of the premium market, Xiaomi rebranded its higher-end phones under the Mi series. However, even with this new approach, Xiaomi struggled to deliver. The delayed launch of the Mi 11 Ultra and other premium phones only added to the frustration of consumers who were looking for timely releases. Furthermore, Xiaomi’s MIX Flip, a flagship phone with innovative features like the Silicon-Carbon battery, never made it to the Indian market, leaving many consumers disappointed.

Branding Confusion and Pricing Issues

Xiaomi’s decision to release premium phones under its Mi brand rather than continuing with Redmi also led to confusion among consumers. The company partnered with Leica for advanced camera technology, but the pricing of these phones was out of touch with the expectations of Indian consumers. Users were not willing to pay ₹1 lakh or more for a Xiaomi phone, and this misjudgment in pricing led to the underperformance of its premium offerings.

Xiaomi continued to push out premium phones, even though its core audience remained firmly rooted in the budget and mid-range segments. This dual focus on both premium and budget phones caused a disconnect between the brand and its loyal customer base. The result was a loss of trust, and the premium phones failed to make the impact Xiaomi had hoped for.

Redmi Note 14 Series: A Big Disappointment

Another blow to Xiaomi’s reputation came with the release of the Redmi Note 14 series, which was widely panned by critics and users alike. The phone was labeled as “the worst phone of the year” by many in the tech community, including some of Xiaomi’s own fan base. The phone’s poor performance and lackluster features left many customers dissatisfied, and this further eroded Xiaomi’s position in the market.

Xiaomi had long relied on its loyal user base to sustain its sales, but it became clear that customers were not as loyal as the company had assumed. The Redmi Note 14 series marked a turning point for Xiaomi, as the brand realized that it could no longer take its customer base for granted.

Management Changes and Strategic Shifts

Xiaomi’s downfall can also be attributed to several key management changes that occurred over the years. When Hugo Barra, the former global VP of Xiaomi, left the company, it was a blow to its leadership. However, Manu Kumar Jain stepped in and led the company to new heights. But after Jain’s departure, Xiaomi struggled to maintain its leadership position in India.

The departure of key figures like Raghu Reddy, Sumit Sonal, and Sudeep Sahu further destabilized the company’s operations. The absence of a strong leadership team led to a lack of direction, and this was reflected in the company’s performance. The recent departure of Muralikrishnan B, the current head of Xiaomi India, also caused further concern among employees and stakeholders.

Rising Competition from Vivo and iQOO

While Xiaomi was busy battling its internal issues, its competitors, particularly Vivo and iQOO, seized the opportunity to capture market share. These brands aggressively marketed their products and quickly gained traction in the mid-range segment, an area where Xiaomi once held a dominant position. Vivo and iQOO’s strong product offerings and effective marketing strategies proved to be the final blow to Xiaomi’s once-unshakable position in India.

The fierce competition from these brands, combined with Xiaomi’s internal struggles, left the company unable to defend its market share. The once unchallenged leader in the budget and mid-range segments now finds itself struggling to compete.

The Road Ahead for Xiaomi in India

Xiaomi’s journey in India has been nothing short of remarkable, but the road ahead is uncertain. The company must reevaluate its strategy and adapt to the rapidly changing market dynamics. If Xiaomi wants to regain its position as a leader in the Indian smartphone market, it will need to address the key issues that have led to its decline.

The company must focus on delivering timely product launches, improving the quality of its phones, and maintaining a strong relationship with its customers. Additionally, Xiaomi must rethink its pricing strategy, especially for its premium phones, to ensure that they are more aligned with the expectations of Indian consumers.

Xiaomi’s decline in the Indian market is a cautionary tale for any company that wishes to maintain its dominance for an extended period. While Xiaomi once ruled the Indian smartphone market, its failure to adapt to changing market trends, poor product decisions, and internal leadership challenges have left the company struggling. The next few years will be crucial for Xiaomi, and if it hopes to regain its lost glory, it will need to make bold decisions and overhaul its strategies.