Xiaomi, which has just beaten the pawn at Apple by becoming the world’s second-largest smartphone maker, “is now transforming its economic model” and goes from “challenger to a major player”, according to Canalys. Next step: to dethrone Samsung.
For the first time, Xiaomi became the world’s second-largest smartphone maker in the second quarter of 2021, with 17% market share and sales up 83% year-on-year (+ 62% in the first quarter of 2021), according to data. Canalys. The Chinese company temporarily takes the pawn at Apple, which slips to third place with 14% market share and sales up only 1% (+ 41% in the first quarter of 2021).
In a letter to the brand’s employees, Lei Jun, founder and CEO of Xiaomi, stressed that becoming the world’s number two is a key milestone in the company’s history.
Samsung continues to occupy the first place, with 19% market share and 15% sales growth in the second quarter compared to the same period last year (+ 28% in the first quarter). Oppo and Vivo round out the top 5, both with a 10% market share.
+ 300% in Latin America
Already in the first quarter, Xiaomi showed impressive growth, with a turnover of 76.9 billion yuan (9.84 billion euros), an increase of 54.7% year on year. . Its net profit for the period was 6.1 billion yuan (780 million euros), up 163.8% year-on-year. Its smartphone sales had already jumped 69.1% compared to the same period last year, thanks in particular to rapid growth in mainland China.
In the second quarter, Xiaomi’s activity abroad would have grown rapidly, according to Canalys: + 300% in Latin America, 150% in Africa and 50% in Western Europe, for example.
Xiaomi “is now transforming its economic model”
Chinese firm “is now transforming its economic model” and goes from “challenger to a major player, with initiatives such as the consolidation of distribution partners and more careful management of older stocks”, said Ben Stanton, research manager at Canalys. The company “However, it remains largely mass-market oriented and, compared to Samsung and Apple, its average selling price is around 40% and 75% cheaper, respectively. Thus, a major priority for Xiaomi this year will be to develop sales of its high-end devices, like the Mi 11 Ultra. But it will be an uphill battle, with Oppo and Vivo sharing the same goal. “, he added.
“Xiaomi already has the next issue in its sights: to replace Samsung as the world’s largest seller”, concluded Ben Stanton. However, we must put it into perspective. We know that the smartphone market has its appointments and that the third quarter is particularly advantageous for Apple, since it is at this time that its new iPhones come out. And this year, the Cupertino company is obviously counting on excellent sales. According to Bloomberg, the giant does intend to increase production of its next phone by 20%. This is equivalent to an order for 90 million terminals for the first quarter of the launch alone, against 75 million previously … To be continued.