Samsung recently lost out to Xiaomi in China, and it has now slipped to No. 2 in India thanks to Micromax.
According to research firm Canalys, Micromax's "incredible performance" is due in part to its appeal to upgrading phone users and reasonably priced products. Micromax's flagship devices, including the Canvas Nitro and Canvas Hue (pictured), sell for $150 to $200 (9,000 Rupee to 12,000 Rupee).
An estimated 23 percent of smartphones sold in India were priced under $100, Canalys said; 41 percent fell in between $100 and $200.
Micromax has taken a 22 percent share of the total smartphone market in India, beating Samsung at 20 percent. Karbonn and Lava helped round out the top four players in India's final quarter of the year.
"Canalys believes catering to local market preferences will become increasingly important," analyst Rushabh Doshi said in a statement. "Micromax has been quicker than its competitors to improve the appeal of devices." But now it needs to "appeal to the bulging mid-level income market in India."
Micromax did not immediately respond to PCMag's request for comment.
Overall, the Indian market experienced what Canalys called "very strong" annual growth of 90 percent, with 21.6 million units shipping in the fourth quarter.
Barely six years old, Micromax has shot to stardom, becoming the biggest cell phone brand in Asia's third-largest economy, The Wall Street Journal reported.
Samsung, meanwhile, tied with Apple as the world's No. 1 smartphone vendor in the fourth quarter, based on Strategy Analytics. IDC, however, said Samsung was the victor in Q4 with a mere 600,000 units over Apple.