Saturday, Nov 27, 2021
Counterpoint Market Analysis Collection on Thursday, October 14, 2021 (October 22, 1400) published a new report on the share of smartphone companies in terms of revenue and operating profit. According to Counterpoint, the dynamics of the world's top mobile phone manufacturers in terms of supply is constantly changing, as Xiaomi in the second quarter of 2021 managed to surpass Apple alone in the position of the second top manufacturer in the world. However, these conditions are more stable in terms of operating income and profit, and after several seasons and years, position changes of this magnitude rarely occur.
2021 Although, like other statistics presented at this level, Xiaomi is once again the second largest brand in the world in terms of the number of handsets on the market, but with the emergence of revenue and especially operating profit, Apple is so far from Competitors outperform that not only Xiaomi, but also Samsung can not resist in this field.
despite the conditions in the table above It hasn't seen much change in the last few years, but in the last one or two years, with unprecedented sanctions against Huawei and the growing decline of the brand, there has been room for the growth of other Chinese companies, namely Xiaomi, Oppo and Vivo. Apple and Samsung are the largest revenue generators in the second quarter of 2021. Although Xiaomi has performed very well in terms of the volume of handsets offered in the market, it has not been very successful in terms of profitability and shows a considerable distance from its main competitors.
The reason for this difference in the high volume of handsets offered by Xiaomi and their low profit and revenue should be sought in the policy of this Chinese company, in which success in the volume of supply is of the utmost importance, and Then, with the progress in this field, the next goal of this company will be to turn this high volume of supply into a completely profitable business. The first signs of this change can be seen in 2021; When for the first time after the first half of 2019, with the increase in the average selling price (ASP) of the company's smartphones, a much higher operating profit was produced in this collection. Xiaomi has also recently entered the high-end clamshell segment with the introduction of the Mix Fold, which has been in Samsung's power to date. The introduction of other expensive handsets such as the Mi 11i and Mi 11X is also being considered in this regard, although their performance in terms of volume (especially compared to Samsung's flagship Galaxy S21 series) still has a lot of room for improvement.
Interesting issue In the meantime, let's see how Xiaomi and other Chinese manufacturers will satisfy their regular buyers for the future high-end handsets of these brands with completely higher figures; This is in stark contrast to the nature of these companies and users who are accustomed to buying advanced handsets from these brands at relatively low prices. This is perhaps the reason why Chinese brands are being wider in their product portfolio, pulling Redmi and Poco from Xiaomi, OnePlus and Realme from Oppo and iQOO from vivo.
Raising the average selling price, another strategy of Chinese companies to gain a higher share of revenue and profits of the mobile market belongs to their presence in international markets, especially European markets, including the rise of Xiaomi to the top of the European smartphone market in the quarter. He mentioned the second year of 2021 and Oppo's efforts to build a positive image of the brand by sponsoring the sporting events of Euro 2020 and Wimbledon tennis.
Counterpoint at the end of its report on the situation of Chinese brands in this market says:" With this Xiaomi, Oppo and Vivo need more work to raise average selling prices to improve their long-term gross profit margins. This is especially true for the new generation of their foldable and rolling phones as well as their flagships. In this area, Samsung has already outperformed [its competitors] because it has focused on a reliable profit margin; "This is an area that only Huawei has approached Samsung to challenge so far, and so we may see a similar situation in a few more seasons."