China’s Xiaomi overtakes Apple in the global smartphone market
GUANGZHOU, China — Chinese smartphone maker Xiaomi was the second-largest smartphone maker in the second quarter, overtaking Apple, according to analyst firm Canalys.
Xiaomi had a 17% share of global smartphone shipments, ahead of Apple’s 14% and behind Samsung’s 19%.
“Xiaomi is growing its overseas business rapidly,” Canalys research manager Ben Stanton said in a press release, noting shipments increased 300% year on year in Latin America and 50% in Western Europe.
The Chinese smartphone maker posted year-on-year smartphone shipment growth of 83% versus 15% for Samsung and 1% for Apple.
Stanton noted, however, that Xiaomi phones are still skewed toward the mass market, with the average selling price of its handsets 75% cheaper than Apple’s.
That price range pits Xiaomi against Apple and Samsung in the premium segment. Its domestic rivals Oppo and Vivo are also trying to break through into the high-end market.
“It will be a tough battle, with Oppo and Vivo sharing the same objective, and both willing to spend big on above-the-line marketing to build their brands in a way that Xiaomi is not,” Stanton said.
“All vendors are fighting hard to secure component supply amid global shortages, but Xiaomi already has its sights set on the next prize: displacing Samsung to become the world’s largest vendor.”
Xiaomi has benefitted from Huawei’s struggles. Huawei was once the largest smartphone player in the world, but U.S. sanctions cut the Chinese company off from critical supplies including software and chips.
While smartphones still account for the majority of Xiaomi’s revenue, the company is looking to get into new areas.
Apple has now been pushed to the fourth spot with 14 per cent market share, while Oppo and vivo each have 10 per cent with great growth as well – though nothing that compares to Xiaomi’s 83 per cent over Q2 2020.
Most brands have moved to fill the gap left by Huawei’s exit from the premium smartphone market. Not too long ago, Huawei had managed to displace Apple and had grabbed the second spot among smartphone makers. However, sanctions were imposed on it soon after and company eventually withdrew from the high-end premium phones market.
Xiaomi, OnePlus and others have since rushed to fill the gap. It will be interesting to see if Xiaomi manages to hold the position over the next few quarters amid growing competition.
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