The times are changing. And so are the preferences of Smartphone users in the world’s two biggest markets – India and China. These changes do not bode well for global market leader, South Korea’s Samsung Electronics.

Recent industry figures have shown that during the second quarter of the year, Xiaomi, a handset maker in China, and Micromax of India have toppled Samsung from the top spot in each of their home markets.

The main reason, is that both Xiaomi and Micromax offer Smartphone which are low-on-price, high-on-specs models – which are more wallet-friendly than those Samsung has to offer.

In the no-holds barred battle of the handset makers, dominance in the Chinese market really matters.

Firstly, it is already the world’s biggest market for Smartphone. More than 108 million of the things were sold here in China in the second quarter of this year, something close to 40% of what was sold globally.

And secondly, with a total of 700 million Chinese people already owning a Smartphone, there is, in a population double that size, still room to grow. But how much growth there might be is a big question and, in terms of new users, price is probably a key driver. Which is where Xiaomi has been driving home its advantage.


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