Apple And Samsung File Legal Notices Against Xiaomi Over Advertising Tactics

Apple and Samsung have taken legal action against Xiaomi for its advertising tactics in India. The US and South Korean tech giants, who dominate 95% of the premium smartphone market in India, are concerned about their brand image. "Xiaomi has been served with cease-and-desist notices by Apple and Samsung for certain advertisements, as it directly hit their brand value," said a source familiar with the situation.

Xiaomi's advertising strategy involved direct comparisons with Apple and Samsung products. In March and April, Xiaomi released full-page ads targeting Apple's iPhone 16 Pro Max. These ads compared prices and features with Xiaomi's 15 Ultra model, questioning if Apple's offering was truly superior. On social media, Xiaomi similarly targeted Samsung's models.

Legal Notices and Market Dynamics

The legal notices from Apple and Samsung highlight the fierce competition in India's smartphone market. Xiaomi, primarily known for budget devices, aims to penetrate the premium segment. Experts describe Xiaomi's approach as ambush marketing, where brands are shown unfavourably compared to competitors.

Harish Bijoor, a business strategist, noted that companies are now more protective of their brand value. "Today companies are getting more sensitive towards such advertising," he explained. He emphasised that any comparative or disparaging ads can harm brand valuation significantly.

Xiaomi's Strategy Beyond Smartphones

Xiaomi didn't limit its strategy to smartphones; it also targeted Samsung's LED TVs. The Chinese company issued ads comparing its QLED TVs to Samsung's offerings, highlighting better technology at similar prices. In the TV market, Xiaomi is a strong competitor to LG and Samsung in India.

Despite the legal actions from Apple and Samsung, experts believe ambush marketing will persist in India due to the absence of specific laws against it. Currently, companies issue cease-and-desist notices but may seek compensation for brand damage if situations escalate.

Market Share Insights

According to IDC data, Apple and Samsung hold around 95% of the market share for smartphones priced above Rs 50,000 in India. In contrast, Xiaomi has less than 1% share in this segment. However, Xiaomi ranks among the top three in smart TVs in India, closely competing with LG and Samsung.

Bijoor commented on the effectiveness of cease-and-desist notices: "This cease-and-desist notice is a way to ensure that no more harm is done by the competitor. But from a Xiaomi perspective, it has already reaped the harvest." This suggests that despite potential legal repercussions, Xiaomi may have achieved its marketing goals.

The ongoing rivalry between these tech giants underscores the competitive nature of India's electronics market. As brands continue to vie for consumer attention and loyalty, advertising strategies remain a critical battleground.