A new report by analysis company Canalys shows that Chinese smartphone manufacturer Xiaomi became the second-largest smartphone manufacturer in the second quarter, surpassing Apple. Xiaomi has a 17% share of global smartphone shipments, ahead of Apple’s 14% and behind Samsung’s 19%.
“Xiaomi is growing its overseas business rapidly,” Canalys research manager Ben Stanton said in a press release, noting that shipments in Latin America increased by 300% year on year, and shipments in Western Europe increased by 50% year-on-year. The annual growth rate of smartphone shipments is 83%, compared with 15% for Samsung and 1% for Apple.
However, Stanton pointed out that Xiaomi phones are still biased towards the mass market, and the average selling price of their phones is 75% cheaper than Apple, but the Beijing-based company is now seeking to enter the high-end market. Earlier this year, it launched the Mi 11 Ultra, a high-end smartphone with a starting price of 5,999 yuan ($928). It also launched the Xiaomi Mix Fold at 9,999 yuan, which is its first folding phone.
This price range allows Xiaomi to compete with Apple and Samsung in the high-end market. But its domestic rivals Oppo and Vivo are also struggling to break into the high-end market.
“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 said.
“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.”
Xiaomi has benefited from Huawei’s struggle. Huawei used to be the world’s largest smartphone manufacturer, but US sanctions deprived the Chinese company of key supplies, including software and chips, causing its sales to plummet. New business areas. In March of this year, the technology company announced plans to launch an electric vehicle business and will invest US$10 billion in the next 10 years.
Xiaomi launched its first smartphone in August 2011 and quickly gained market share in China, and in 2014 it became the largest smartphone company in China. At the beginning of the second quarter of 2018, Xiaomi was the fourth-largest smartphone manufacturer. It is in a leading position in China, the largest market, and India, the second-largest market. Subsequently, Xiaomi has developed a wider range of consumer electronics products, including the smart home (IoT) product ecosystem, which has connected more than 100 million smart devices and appliances. In September 2019, MIUI’s monthly active users (MAU) increased to 291.6 million.
Xiaomi has 18,170 employees worldwide. It has expanded to other markets, including Greater China, Singapore, Japan, South Korea, Russia, South Africa, and most countries and regions in Southeast Asia and Europe. According to Forbes, founder and CEO Lei Jun estimated net worth of $12.5 billion. Xiaomi became the world’s fourth most valuable technology startup company after receiving 1.1 billion U.S. dollars from investors, making Xiaomi’s valuation more than 46 billion U.S. dollars. Xiaomi ranks 468th and is the youngest company on the Fortune Global 500 list in 2019. In 2019, Xiaomi’s mobile phone shipments reached 125 million units, ranking fourth in the world since 2018. The company has been listed on the Hong Kong Stock Exchange since 2018.