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Tuesday, July 16, 2024

Xiaomi overtakes Apple’s no.2 spot

China's Xiaomi overtakes Apple as the global number two smartphone vendor for the first time in Q2 2021 with an 83% growth.

With the world going through the Covid-19 Pandemic, China’s Xiaomi overtakes Apple in Q2 2021, as global smartphone shipments increased 12% and the new normal for economies and citizens started to take shape.

With a 19% share of smartphones, shipped Samsung has been leading the pack. However, for the first time, with a 17% share, Xiaomi has taken over the second spot bringing Apple down to third with 14%, while Oppo and Vivo compete for the 4th and 5th spot, respectively.

Canalys Research Manager Ben Stanton revealed the information “Xiaomi is growing its overseas business rapidly.” 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.

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Xiaomi overtakes Apple

He further added, “For example, 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.”

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“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. 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.”