How did Xiaomi become the second largest smartphone maker?

Second only to Samsung, Chinese smartphone maker, Xiaomi overtook Apple in the second quarter with more global shipments and products that are affordable.

A new report from Canalys, an analyst firm, declared that Chinese smartphone maker, Xiaomi overtook Apple in the second quarter, becoming the second-largest smartphone maker. Xiaomi had a 17 percent share of global smartphone shipments; this was ahead of Apple’s 14 percent and behind Samsung’s 19 percent.

Ben Stanton, a research manager at Canalys said that Xiaomi is growing its overseas business at a rapid pace. This is reportedly evident in its shipments, which have increased by 300 percent year after year in Latin America, and by 50 percent in Western Europe. The Chinese smartphone maker posted a year-on-year smartphone shipment growth of 83 percent, compared to 15 percent for Samsung and only 1 percent for Apple.

According to Stanton, Xiaomi products are favourable towards the public, an example would be the handsets which are reportedly 75 percent cheaper than Apple’s handsets. However, the Beijing-headquartered company is now reportedly looking at entering the high-end market. In early 2021, the company reportedly launched the Mi 11 Ultra, which is a premium smartphone that starts at $928. It also launched the Mi Mix Fold which is the company’s first foldable phone.

Furthermore, reports suggest that the price range for the Mi 11 Ultra and Mi Mix Fold will set the global company against Apple and Samsung in the high-end market. However, Xiaomi is not the only company that is fighting to break into the premium segment. According to reports, the company’s domestic rivals, Oppo and Vivo, are also attempting to do the same. Commenting on the matter, Stanton stated that Oppo and Vivo share the same objective and are both willing to spend on extravagant market tools, unlike Xiaomi.

Lastly, Xiaomi is reportedly benefiting from Huawei’s decline. Huawei was reportedly once the largest smartphone brand globally, but the United States (US) sanctions wounded the company’s critical supplies, leading to a plunge in sales.