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Beating Apple, Xiaomi becomes the world’s 2nd largest smartphone maker in Q2 2021, recorded highest growth
Recently, a well-known market research firm – Canalys published a new report, which reveals that the global shipments of smartphones grew 12% in the second quarter of this year. Talking about the top 5 vendors, Samsung maintained its top position in the global smartphone market with a 19% share and increased growth by 15%.
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Amid the Covid-19 pandemic, Xiaomi first time took the second spot with a 17% share, a massive 83% growth in shipment. However, the company offers smartphones with its premium features at affordable pricing, which helps to gain market share.
Meanwhile, Canalys analysts believe that Xiaomi is rapidly growing its overseas business as its shipments increased more than 300% in Latin America, 150% in Africa, and 50% in Western Europe. The average selling price for Xiaomi is about 40% and 75% cheaper than for Samsung and Apple respectively. Hence, the company has managed to increase sales for its high-end devices such as the Mi 11 Ultra.
Apple comes on third with 14% of the market share in terms of smartphones shipment. Aside from this, Chinese brands like Vivo and OPPO also remained in their fourth and fifth place respectively with the 10% share.
“Xiaomi is growing its overseas business rapidly,” said Canalys Research Manager Ben Stanton. “For example, its shipments increased more than 300% in Latin America, 150% Africa and 50% in Western Europe. And as it grows, it evolves. It is now transforming its business model from challenger to incumbent, with initiatives such as channel partner consolidation and more careful management of older stock in the open market. It is still largely skewed toward the mass market, however, and compared with Samsung and Apple, its average selling price is around 40% and 75% cheaper respectively. So a major priority for Xiaomi this year is to grow sales of its high-end devices, such as the Mi 11 Ultra. But it will be a tough battle, with Oppo and Vivo sharing the same objective, and both willing to spend big on above-the-line marketing to build their brands in a way that Xiaomi is not. All vendors are fighting hard to secure component supply amid global shortages, but Xiaomi already has its sights set on the next prize: displacing Samsung to become the world’s largest vendor.”