Apple has been toppled as the world’s second-largest smartphone maker by Chinese electronics giant Xiaomi, based on the latest worldwide shipment estimates for the second quarter of 2021. Starting its journey as the maker of value-for-money phones, Xiaomi’s portfolio now includes phones such as the Mi Mix Fold and Mi 11 that go head-to-head with the likes of Samsung Galaxy Z Fold 2 and iPhone 12. In the past few years, the brand has vastly diversified its product portfolio that now includes everything from TVs and air purifiers to wearables and beard trimmers.
The company’s bread-and-butter continues to be low-end phones that are sold under its Redmi sub-brand predominantly in Asia, Europe, and Latin America where the growth has been impressive. In the U.S. market, Xiaomi is yet to leave a mark with its phones, but has already faced troubles including being temporarily blacklisted for allegedly serving as a ‘Communist Chinese Military Company.’ The company eventually found some relief under the Biden administration and is now looking to strengthen its foothold in the market.
Xiaomi accounted for 17-percent of the global shipments in Q2 2021, racing ahead of Apple with a market share of 14-percent. As per a Canalys report, Samsung took the top spot with a 19-percent share, while Vivo and Oppo tied for the fourth position at 10-percent each. However, Xiaomi left the competition far behind with a growth figure of 83-percent in its quarterly shipments, while Oppo sat at a distant second with a 28-percent boost.
Xiaomi Topples Apple. Is Samsung Next?
Breaking down Xiaomi’s market growth, the report mentions that the company’s smartphone shipments went up by a staggering 300-percent in Latin American markets, and recorded an impressive 150-percent growth in African countries. The shipment figures in Europe, on the other hand, saw a rather modest 50-percent jump, likely due to competition from fellow Chinese brands, such as Oppo, Realme, and Vivo. The company is already a market leader in multiple Asian countries including India where it goes head-to-head with Samsung. Interestingly, Xiaomi’s spectacular growth figures and shipment numbers don’t translate into profits.
The Canalys report notes that the selling price of Xiaomi’s smartphones is 40-percent lower compared to Samsung, and undercut the price of iPhones by as much as 75-percent. Back in 2018, Xiaomi co-founder and CEO Lei Jun proudly announced that the company will cap its profit margin for the entire hardware portfolio — including smartphones — at just 5-percent. Lately, owing to an amalgam of factors such as increasing competition, a rise in the price of components, and the ongoing global chip shortage, the company has been struggling with its competitive pricing formula. Despite the challenges, Xiaomi’s phones continue to undercut Apple and the rest of the rivals on the value-for-money front, and across all price brackets.
Source: Canalys