Friday, Sep 17, 2021
On Thursday, July 15, 2021, the Canalys Research Institute released its initial estimate of the global smartphone market situation in the second quarter of 2021. According to the report, the global supply of smartphones has grown by 12% in the last quarter. According to Canalys experts, at the same time as this growth is taking place, COVID-19 vaccination is being widely implemented around the world and new standards are being formed for economies and citizens. The interesting thing about this report is that all Chinese brands may have benefited from Huawei's international decline, but in the meantime no brand has benefited as much as Xiaomi.
always habit We've seen Samsung and Apple rank first and second in the world, but you might be a little surprised to see the second quarter 2021 chart. Preliminary estimates by Canalys indicate that this time, for the first time in history, the Chinese brand Xiaomi became the second best-selling smartphone after Samsung - with 19% market share and 15% growth. Own it in one season. Xiaomi, which makes almost everything these days (from rice cookers to gaming monitors), has taken control of 17% of the global smartphone market in the last quarter, second only to Samsung.
Following the news, Xiaomi shares rose 4.1% on Friday, earning the best share of the Hong Kong Stock Market Index (Hang Seng). Another compliment to Xiaomi's performance is its 83% annual growth in smartphone sales (compare to Apple's 1% growth). Canalys's research director Ben Stanton attributes one of Xiaomi's remarkable success factors to the brand's rapid growth outside China. In confirmation of this fact, Stanton points to Xiaomi's more than 300% growth in Latin America, 150% growth in Africa and 50% growth of this brand in Western Europe.
According to Stanton, the brand has evolved as it grows around the world. Xiaomi is evolving its business model, and the brand's role has changed from "challenging member" to "attendance member". This success is due to initiatives such as consolidating sales channels through partners or prudent management of older inventories in the open market. However, Xiaomi's policies are still largely mass-market, with the average selling price of Xiaomi smartphones being 40 percent cheaper than Apple products and 75 percent cheaper than Samsung devices.
With that said, Xiaomi's priority this year may be to boost sales of its high-end devices like the Mi 11 Ultra, which of course will not be easy, especially since Oppo and Vivo have pursued the same goal. Both are willing to pay the price for marketing to promote their brands. Given the shortage of parts on a global scale, all smartphone brands are working hard to get the parts they need first, but apparently Xiaomi's goal goes beyond that, and the Chinese company is looking to push it aside. Samsung to become the largest smartphone supplier in the world. According to some experts, if Xiaomi continues to grow in this way, achieving this is not far off.
We should not forget that before the imposition of US sanctions against Huawei , The Chinese giant has always been among the contenders and even went on to win second place in the world. But following the elimination of Huawei from the competition, other Chinese brands had more time to prove themselves, and in the meantime, Xiaomi was more active with the launch of two flagships in the first four months of the year. Interestingly, the Mi 11 Ultra currently holds the record for the largest smartphone camera sensor, and this shows that Xiaomi is looking to increase the pricing range of its products. Preliminary estimates by Canalys show that after Xiaomi, Apple ranks third with 17% global market share and 1% growth over the same period last year. It is important to note that the supply of smartphones by companies varies from season to season. For example, in the last quarter of 2020, it was Apple that topped the list thanks to strong sales of the iPhone 12 series. Therefore, it is not unlikely that Apple will return to the first place after the release of the iPhone 13 family. Not to mention, after Apple, Chinese brands Oppo and Vivo - each with 10% of the global market - are ranked fourth and fifth, respectively.