Showing stunning growth in the pandemic, Chinese company Xiaomi has become the second-largest smartphone vendor globally for the first time ever (in terms of unit shipments) in the April-June quarter, a new report has shown.
Samsung was still the leading vendor with a 19 percent share of smartphones shipped and Xiaomi took second place for the first time ever, with a 17 percent share, according to market research firm Canalys.
Apple was third with a 14 percent market share, while Vivo and OPPO maintained strong growth momentum to complete the list of top five smartphone players worldwide in terms of unit shipments.
“Xiaomi is growing its overseas business rapidly. For example, its shipments increased more than 300 percent in Latin America, 150 percent in Africa, and 50 percent in Western Europe,” said Canalys Research Manager Ben Stanton.
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“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,” Stanton said in a statement late on Thursday.
Xiaomi is still largely skewed toward the mass market, however, and compared with Samsung and Apple, its average selling price (ASP) is around 40 percent and 75 percent cheaper, respectively.
“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,” Stanton elaborated.
In Q2 2021, global smartphone shipments increased 12 percent, as vaccines rolled out around the world, and the new normal for economies and citizens started to take shape.
“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,” Stanton noted.