Chinese smartphone brands are losing ground in India just as rising memory chip prices are making budget phones harder to sell profitably. Their retreat is opening a window for Indian companies such as Lava and Ai+, whose combined market share has climbed to its highest level in nearly eight years.
New entrants from the consumer electronics industry are also eyeing the sub-Rs 15,000 segment. The opening, however, comes in a shrinking market where consumers are delaying purchases and established rivals retain enormous advantages in technology and distribution. The challenge before India's homegrown smartphone makers is whether a cost-driven opportunity can become a lasting competitive advantage.
