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It was also revealed that Xiaomi posted year-on-year smartphone shipment growth that beats that of Samsung and Apple.
In the mobile phone market, Apple Inc (NASDAQ: AAPL) might be a more renowned name but it was overtaken by Chinese smartphone maker Xiaomi in the last quarter.
According to data from Canalys, the Chinese firm was the second-largest smartphone maker in the second quarter. The data revealed that Xiaomi had 17% share of global smartphone shipments which is only behind that of Samsung which stood at 19%. Apple sits third with 14% of the smartphone shipping worldwide.
What this means is that the Chinese phone maker is experiencing an upturn in its shipments. The data went on to reveal that “shipments increased 300% year-on-year in Latin America and 50% in Western Europe.” Not only that, but it was also revealed that the Chinese firm posted year-on-year smartphone shipment growth that beats that of Samsung and Apple.
Per the data, the shipment growth of Xiaomi is 83% while that of Samsung is 15% and Apple stands at just 1%.
Ben Stanton, Canalys Research Manager, posits that this increase is due to Xiaomi attempts to grow its businesses outside the shores of China. According to him “Xiaomi is growing its overseas business rapidly.”
He continued that the phones, however, were still targeted at the mass markets when compared to its more illustrious counterparts. He declared that Xiaomi phones were still 75% cheaper than Apple’s.
But recent indications from the firm shows that it is trying to break the barrier and enter into the premium market too. This year, it has released the Mi 11 Ultra, a premium smartphone that would cost a minimum of $928 which translates to roughly over 5,000 yuan. The firm also released its first foldable phone, Mi Mix Fold.
The costs of these products place it on par with the prices of the products of Samsung and Apple. And unsurprisingly, its local rivals, OPPO and Vivo are also looking to shatter the high-end market glass.
Stanton said that “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.” He also highlighted 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.”
The Chinese phone maker has enjoyed its growth largely due to the fall of Huawei. Huawei had enjoyed massive sales and growth in previous times, however, it faced a couple of debilitating sanctions from the government of the United States who cut it off major supplies of software and chips. This caused the value of its product to tank massively in comparison to its rivals.