Chinese Xiaomi surpasses Apple in the global smartphone market

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A Xiaomi logo was seen in a Xiaomi store on June 22, 2021 in Shanghai, China.

Wang Gang | Visual China Group | Getty Images

GUANGZHOU, China Chinese smartphone maker Xiaomi was the second largest smartphone maker in the second quarter, overtaking Apple, according to a new report from analyst firm Canalys.

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

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

The Chinese smartphone maker recorded growth in smartphone shipments on an annual basis of 83% versus 15% for Samsung and 1% for Apple.

Stanton noted, however, that Xiaomi phones are still geared towards the mass market with the average selling price of its phones 75% lower than Apple’s.

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But the Beijing-based company is now looking to enter the high-end market. Earlier this year it launched the Mi 11 Ultra, a premium smartphone starting 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. But its domestic rivals Oppo and Vivo are also looking to break into the high-end market.

“It will be a tough battle, with Oppo and Vivo sharing the same goal and both willing to spend a lot on above the line marketing to build their brands in a way that Xiaomi is not,” Stanton said.

“All suppliers are struggling hard to secure component supply amid the global shortage, but Xiaomi already has its sights set on the next prize: replacing Samsung to become the world’s largest supplier.”

Xiaomi has benefited from Huawei’s struggles. Huawei was once the biggest smartphone player in the world, but US sanctions cut the Chinese company off critical supplies, including software and chips, causing its sales to plummet.

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

Correction: This story has been updated to accurately reflect that this isn’t the first time Xiaomi has overtaken Apple.

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