In a surprise market development, Xiaomi snatched the second position in global smartphone shipments from Apple during the Q2 of calendar year 2021 by capturing 17% of the global market.
According to research firm Canalysis report, Xiaomi is achieving this target for the first time and it is interesting to note that the achievement is made during the devastating time of the Covid-19 pandemic period. Worldwide smartphone shipment grew 12% amid Covid-19 pandemic recovery.
Chinese mobile company registered stunning growth of up 83% year-over-year for the quarter. The growth helped it capture second place behind only Samsung’s 19% by a relatively small margin.
Apple is at third with 14% (after its own solid growth has slowed), while Vivo and Oppo maintained strong
growth momentum to complete the top five. The other Chinese smartphone player Huawei is nowhere in the top five slot.
Huwaei is facing global challenge after it got blacklisted in certain markets, especially in the largest smartphone market in the US. Also, the company tiff with Google’s Android put the company in backfoot. Many apps also withdrew from the company’s devices also hit its performance.
Commenting on the stellar performance of Xiaomi, Canalys Research Manager Ben Stanton said Xiaomi is growing its overseas business rapidly as its shipments increased more than 300% in Latin America, 150% Africa and 50% in Western Europe.
“And 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. . It is still largely skewed toward the mass market, however, and compared with Samsung and Apple, its average selling price is around 40% and 75% cheaper respectively,” said Ben Stanton.
He also highlighted the point that a major priority for Xiaomi this year was 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. 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,” said Ben Stanton.
It is interesting to note that Xiaomi has become a household name in India, the second-largest populous nation in the world. Under the leadership of Manu Jain, Xiaomi India is expanding its brand presence and synching with Indian customers varied demands and priorities.
Xiaomi India which started its operation in the country way back in July 2014 is celebrating its 7th anniversary now. Besides launching an array of producst, Xiaomi India also set up brand stores and lined up distributors and vendors across the country. The ecommerce play of Xiaomi India also played an important role in capturing market in the country.