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Earlier today we reported that Xiaomi had become the most popular OEM in its home country of China, controlling 14% of the market, while subsequently knocking Samsung down to second place with 12% of the marketshare. Samsung recently admitted in its less-than-stellar Q2 earnings report that its sales had suffered in part due to increased competition from Chinese manufacturers. As it turns out, however, it’s not just China.

According to a new report from Counterpoint Research, locally-based Micromax has now ousted Samsung from its top spot in the cellphone market in India as well. The report claims that MicroMax grabbed a 16.6% share of the market in the April-June quarter, versus Samsung’s 14.4% of the pie. It’s important to note that, unlike in China, this loss of market position applies to all mobile phones in general. When it comes to smartphones, Samsung is still on top with 25.3% of the market, with Micromax nipping at its heels with 19.1% of the market.

Indian-based Micromax has now ousted Samsung from its top spot in the cellphone market in India

Even if Samsung is still the dominant force when it comes to smartphones in India, it’s clear that this position is slipping away from the Korean giant and its only a matter of time before Micromax steals the top spot in smartphone market. As you may recall, Micromax is set to be one of the first Google partners to release an Android One device for as little as $100, which will make their smartphone offerings even more alluring.

Of course, this highlights the real problem for Samsung. Utilizing Mediatek processors and keeping other associated costs as low as possible, smartphone brands in China and India are able to offer compelling devices for prices that are significantly cheaper than Samsung’s products. Adding programs like Android One into the mix just further upsets this balance in favor of local brands, particularly in emerging markets.

What do you think of Samsung’s recent market decline in China and India? Surprised or not?

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