Smartphone sales’ profits hit by competitive and large scale investments

The year 2019 has seen smartphone makers bring in exciting technologies to stay afloat in a hyper-competitive market. Intense price wars and large scale investments by the brands, however, have taken a toll on their profits.

In the financial year 2018-19, market leader Xiaomi India ended up in the red for the first time since its entry into the domestic market in mid 2014, while runner-up Samsung India Electronics’ consolidated net profit fell over 58 per cent to Rs 1,540.5 crore in 2018-19, according to regulatory filings.