Showing a stunning growth in the pandemic, Chinese company Xiaomi has defeated apple and became the number two smartphone vendor in the world. The growth made by Xiaomi amid the pandemic situation is amazing and has left the techies awestruck.
Samsung was the market leader with 19% and nearly 15% annual growth. Xiaomi was number two with 17% market share and nearly 83 percent market share. Apple slipped to number three position with 14% market share.
Vivo and Oppo were number four and five respectively in the list with both seeing double digit growth with 10 percent share each.
Words from the Researcher
Canalys Research Manager Ben Stanton said that-
“Xiaomi is growing its overseas business rapidly. For example, its shipments increased more than 300 per cent in Latin America, 150 per cent Africa and 50 per cent in Western Europe.”
Further adding he said that-
“As it grows, it evolves. It is now transforming its business model from challenger to incumbent, with initiatives such as channel partner consolidation and more careful management of older stock in the open market.”
Xiaomi’s Mass Market
Xiaomi is still largely skewed toward the mass market, however, and compared with Samsung and Apple, its average selling price (ASP) is around 40% and 75% cheaper, respectively.
Stanton elaborated the whole situation and broke it down as-
“So a major priority for Xiaomi this year is to grow sales of its high-end devices, such as the Mi 11 Ultra. But 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.”
Further he explained that-
“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.”
In Q2 2021, global smartphone shipments increased 12%, as vaccines rolled out around the world.
Huawei and It’s Market Space
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.