Xiaomi becomes the world's second-largest phone maker for the first time

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Engadget 16 July, 2021 - 09:19am 36 views

The key, as you might guess, was price. Xiaomi's average selling prices are well below those of Samsung (40 percent) and Apple (75 percent), and even flagships like the Mi 11 are relatively affordable. That may have helped Xiaomi's strong international expansion, including a 300 percent jump in Latin America, a 150 percent spike in Africa and a 50 percent gain in Western Europe. And unlike its fallen competitor, Huawei, Xiaomi doesn't have a US blacklisting to cloud its future.

It's not certain that Xiaomi will hold on to its position. The second quarter is historically weak for Apple as it reaches the tail end of a given iPhone's release cycle. Canalys also notes that Oppo and Vivo aren't staying still — they have their own dreams of world dominance. And if Xiaomi hopes to escape its low-cost reputation, it needs phones like the Mi 11 Ultra and Mi Mix Fold to resonate with the public.

Even a temporary second-place position would be notable, though. While Xiaomi has long had a major presence in its native China, the company has had a much tougher fight for international recognition. Now, it's large enough to battle with behemoths like Samsung and Apple — it's just a question of whether or not Xiaomi can become the frontrunner.

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Xiaomi shipped more phones than Apple last quarter

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Xiaomi is not really a household name in every part of the world, but thanks to its exponential growth in several regions, it has managed to beat Apple in Q2 2021 smartphone shipments worldwide.

According to a report by analytics firm Canalys, the Chinese tech company grabbed 17% percent of the market, while Apple registered a 14% market share. Samsung was on the top of the charts with a 19% market share.

This is not entirely surprising, given Apple usually has strong quarters after it releases its latest series of iPhones in September or October each year. Meanwhile, Xiaomi has released some high-end phones in the Mi 11 and the Mi 11 Ultra, with a bunch of budget offerings.

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However, this is the first time the company has climbed up to the second spot. Canalys Research Manager Ben Stanton noted that the reason is the company’s growth in markets like Africa, Western Europe, and Latin America: 

Xiaomi has been taking steady steps towards getting to this point. In 2019, it opened a dedicated Africa department to handle distribution across the continent. The same year, it started openingphysical stores in Latin America.

Earlier this year, a report from analytics firm Counterpoint suggested that Xiaomi became the third-largest smartphone company in Latin America for Q4 2020. It has also registered steady growth in Africa, but still falls behind brands such as Tecno, Infinix, and Samsung.

Meanwhile, Xiaomi is still on the top of smartphone charts in India, one of the world’s biggest markets.

The next target for the company would be to beat Apple in yearly smartphone shipments. That will solidify its position as a true global company.

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Xiaomi overtakes Apple as No. 2 smartphone maker

Reuters 16 July, 2021 - 11:10am

Xiaomi overtakes Apple as world’s No 2 phone maker, Canalys says

The Hindu BusinessLine 16 July, 2021 - 11:10am

Xiaomi has Samsung in its sights after overtaking Apple in smartphone sales

CNN International 16 July, 2021 - 11:10am

Updated 5:25 AM ET, Fri July 16, 2021

Xiaomi parties like a winner after coming second on world smartphone sales charts

The Register 16 July, 2021 - 03:02am

Analyst firm Canalys has, for the first time, found Chinese firm Xiaomi the world’s second-ranked smartphone vendor, as measured by unit shipments.

The firm stated that Xiaomi achieved the feat in Q2 2021, when it enjoyed 17 percent market share, behind Samsung’s 19 percent but ahead of Apple’s 14 points.

Canalys’ market share numbers are preliminary data: it is yet to offer its assessment of how many handsets shipped in the quarter, making it hard to assess if Xiaomi stood out in a competitive quarter or during a slower sales period.

The Register notes that Q2 did not see a premium handset launch from either Apple or Samsung, and those events typically drive sales spikes as consumers rush to acquire new Galaxy S or iPhone models.

But let’s not take away from Xiaomi’s success, which Canalys research manager Ben Stanton said Xiaomi’s attributed to shipments increasing 300 percent in Latin America, 150 percent in Africa and 50 percent in Western Europe.

“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,” Stanton wrote.

Stanton added that Xiaomi “is still largely skewed toward the mass market … and compared with Samsung and Apple, its average selling price is around 40 percent and 75 percent cheaper respectively”

Xiaomi CEO Lei Jun was so chuffed by the news he wrote a letter to staff and popped it on the internet.

“This is the first time we reached this unprecedented level, and we will inevitably face many vicious and fierce battles ahead of us,” he wrote.

“It is an honour for us to compete with the most powerful and innovative companies in the world at the peak on the global stage,” he added. “We are still very young and thus have not accumulated sufficient experiences yet; we must keep calm and stay humble.”

The company is also pouring money into new products and more people.

Jun said that Xiaomi’s R&D spend has risen 30 percent since 2020, to US$2bn in 2021, and the company plans to hire 5,000 more R&D engineers this year alone.

"This journey is destined to be long and tough, with more loneliness than revels, more tribulations than applauses,” he added. “However, as long as we are moving in the right direction, we shall have no fear of the distance.”

“Dear colleagues, please join me in rolling up your sleeves and working hard to strive towards our dreams with all our might. Full speed ahead!”

And all that on a Friday. ®

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Xiaomi overtakes Apple as number two smartphone vendor for first time

The Verge 16 July, 2021 - 01:48am

BBK’s Oppo and Vivo rounded out the list of top five vendors at 10 percent apiece. All five companies grew their shipments year on year, but what’s notable is just how much Xiaomi has managed to increase its volume — it shipped 83 percent more phones than in Q2 2020, whereas Samsung grew shipments 15 percent and Apple by just one percent.

“Xiaomi is growing its overseas business rapidly,” Canalys Research Manager Ben Stanton says, citing sales boosts in regions including Western Europe, Africa, and Latin America. “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.”

Canalys says global smartphone shipments grew by 12 percent last quarter. Much of the growth seen by smartphone makers is at the expense of Huawei, however, which itself overtook Apple in 2019 but has since been essentially shut out of the worldwide market due to US-imposed sanctions and trading bans. So far, Xiaomi appears to be the biggest beneficiary.

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China's Xiaomi overtakes Apple in the global smartphone market

CNBC 16 July, 2021 - 01:17am

GUANGZHOU, China — Chinese smartphone maker Xiaomi was the second-largest smartphone maker in the second quarter, overtaking Apple, according to analyst firm Canalys.

Xiaomi had a 17% share of global smartphone shipments, ahead of Apple's 14% and behind Samsung's 19%.

"Xiaomi is growing its overseas business rapidly," Canalys research manager Ben Stanton said in a press release, noting shipments increased 300% year on year in Latin America and 50% in Western Europe.

The Chinese smartphone maker posted year-on-year smartphone shipment growth of 83% versus 15% for Samsung and 1% for Apple.

Stanton noted, however, that Xiaomi phones are still skewed toward the mass market, with the average selling price of its handsets 75% cheaper than Apple's.

But the Beijing-headquartered company is now looking to push into the high-end market. Earlier this year, it launched the Mi 11 Ultra, a premium smartphone that starts at 5,999 yuan ($928). It also launched the 9,999 yuan Mi Mix Fold, its first foldable phone.

That price range pits Xiaomi against Apple and Samsung in the premium segment. Its domestic rivals Oppo and Vivo are also trying to break through into the high-end market.

"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," Stanton said.

"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."

Xiaomi has benefitted from Huawei's struggles. Huawei was once the largest smartphone player in the world, but U.S. sanctions cut the Chinese company off from critical supplies including software and chips, causing its sales to plunge.

While smartphones still account for the majority of Xiaomi's revenue, the company is looking to get into new areas. In March, the technology firm announced plans to launch an electric vehicle business and invest $10 billion over the next 10 years.

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Xiaomi Overtakes Apple as World’s No. 2 Phone Maker, Canalys Says

Yahoo Finance 15 July, 2021 - 09:03pm

This marks the first occasion that Xiaomi, the Chinese maker of everything from rice cookers to gaming monitors, has broken into the top two, historically dominated by Samsung Electronics Co. and Apple Inc. Samsung had a 19% share in the second quarter, Xiaomi had 17% and Apple was at 14%, according to the research firm’s data. Shares of Xiaomi rallied as much as 4.1% on Friday, the best performer on Hong Kong’s benchmark Hang Seng Index.

Huawei Technologies Co. had briefly disrupted the rankings, until sanctions cut it off from essential chip supplies last year. Its withdrawal from the highly competitive smartphone market pushed other Chinese vendors to spend aggressively on new hardware and upgrades. Xiaomi was particularly active, launching two flagship devices within the first four months of the year. Its Mi 11 Ultra device features one of the largest camera sensors in a smartphone to date, underscoring the firm’s ambition to push up into the premium pricing range.

“Compared with Samsung and Apple, its average selling price is around 40% and 75% cheaper respectively,” said Canalys Research Manager Ben Stanton. “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.”

Read more: China Drives Phone Market Recovery as Huawei Falls Out of Top 5

Overseas expansion was the biggest driver of Xiaomi’s growth, with the company increasing shipments by more than 300% in Latin America, 150% across Africa and 50% in Western Europe, Canalys said. The Mi device maker has spent the first half of the year contesting the title of biggest smartphone maker in China with rivals Oppo and Vivo, each with roughly equal share of the market.

The second quarter is traditionally the quietest period for Apple and Samsung as both prepare for new handset launches in the following months. The iPhone maker has asked suppliers to build as many as 90 million next-generation iPhones this year, a sharp increase from its 2020 iPhone shipments, Bloomberg reported earlier this week.

(Updates with Xiaomi shares in second paragraph.)

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Xiaomi is now the world's second-largest phone manufacturer, having outgrown Apple and its Chinese rivals.

Xiaomi took the second spot for the first time with 17% share of worldwide smartphone shipments, up 3% from the previous quarter, according to the research firm. Global smartphone shipments grew 12% in the second quarter, led by Samsung Electronics with a 19% share, and Apple at third place with a 14% share. The average selling price of Xiaomi phones is about 40% to 75% cheaper compared with Samsung and Apple respectively, Canalys Research Manager Ben Stanton said, adding that a major priority for Xiaomi this year is to grow sales of its high-end devices.

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Apple falls to number three global smartphone manufacturer globally | AppleInsider

AppleInsider 15 July, 2021 - 12:52pm

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Xiaomi has become the second-largest smartphone manufacturer in the world for the first time during the second quarter of 2021, displacing Apple for the number two spot behind Samsung.

Xiaomi had a 17% share of the market in Q2 2021, behind Samsung's 19% share and ahead of Apple's 14% share. Xiaomi also saw the highest growth, with research firm Canalys estimating that the manufacturer grew 83% year-over-year. Oppo and Vivo took the fourth and fifth positions in the global smartphone maker list, each with a 10% share of the market.

Apple only saw 1% annual growth in the second quarter of 2021, while Samsung clocked in with 15% annual growth. Oppo grew 28% annually, while Vivo grew 27%.

"Xiaomi is growing its overseas business rapidly. 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," said Ben Stanton, research manager at Canalys.

Compared to Apple and Samsung, Xiaomi still produces smartphones that are skewed toward the low-end and midrange. Its average selling price (ASP) is 40% lower than Samsung and 75% lower than Apple, the research firm estimates.

"So a major priority for Xiaomi this year is to grow sales of its high-end devices, such as the Mi 11 Ultra," Stanton said. "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."

These results are preliminary, and Canalys has yet to release firm smartphone shipment numbers for the second quarter as of Thursday. In Q1 2021, global smartphone shipments totaled 347 million units with Apple in second place.

Canalys notes that all smartphone vendors are fighting to secure critical components amid global supply shortages. However, analysts at JP Morgan indicate that Apple is feeling little to no impact by the supply issues when compared to its Android-making counterparts.

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