Seems like a bad day for Samsung, earlier we reported that their No. 1 position in India slipped away, and sounds like they’re headed towards trouble in China as well. Xiaomi is just four years old but the way the company has taken over the market in the last quarter is remarkable.
Just last year, Xiaomi was just another dubious Chinese handset maker. Well, things certainly have changed and according to the report by research firm Canalys, Samsung is no longer the top phone manufacturer in China.
Xiaomi distributed around 15 million phones in early 2014 while Samsung is lagging behind at 13.2 million. The report published on Monday by Canalys, revealed that Xiaomi’s remarkable growth, surpassing giants like Samsung and Lenovo to become the top player in China. Because of its huge growth in China, Xiaomi became the fifth largest smartphone maker in the world.
Xiaomi is little known in Europe or in North America because it sells nearly all of its smartphones in mainland China. But strong growth in China and Indian-subcontinent (recently) was enough to get Xiaomi to a top five position among the world’s smartphone makers from nowhere the previous year.
“Over all, Xiaomi grew 240 per cent, compared with the second quarter last year, to take 14 percent of the Chinese smartphone market. Undoubtedly, this was helped by an under-strength Samsung performance during the quarter,” Canalys research analyst Jingwen Wang wrote in a statement, “But that is only half the story — Xiaomi has also executed on its strategy to grow volume shipments. It has delivered compelling products at aggressive price points, backed by effectively targeted marketing.”
To increase customer base, Xiaomi offered special software that customers cannot get with other Android devices. The company offers a customized version of Android, called MIUI, which customers can help design by giving feedback online; the company releases a new version of the operating system every Friday to keep fans excited.
Samsung reported last week its lowest quarterly profit in two years for the second quarter, partly blaming a slowdown of cheap smartphone sales in China. Samsung said it faced higher competition from local brands and weaker demand for its 3G handsets as Chinese consumers shifted to 4G smartphones.
China has highest percentage of mobile users than any other country and makes up 37% of the global phone market. Encouraged by its success at home, Xiaomi is looking to expand into other countries in the next year, including Mexico, Thailand, Indonesia, Russia and Turkey.
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