Xiaomi surpassed Apple to sit at the number two spot on largest smartphone manufacturer in the world after Samsung, according to a new report from analysis firm Canalys.
The market share leader, Samsung, scores a 19% market share, while the second place no longer belongs to Apple but Xiaomi which score 17% market share in the Q2 of 2021.
Canalys Research Manager Ben Stanton said the China-based company’s shipments have increased by a staggering 300% in Latin America, 150% in Africa, and 50% in Western Europe.
He additionally stated that Xiaomi not only grows but is also evolving its business model. According to him, the company has to try and sell more premium devices, while the majority of its shipments are focused on the budget and mid-range segments.
Apple’s market share is currently 14% with a 1% growth since last year. Oppo and Vivo both have a 10% market share for Q2.
Stanton, however, pointed out that Xiaomi phones are still geared toward the general market, with average selling prices 75 percent lower 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. But 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, it is looking to get into new business areas. In March, the technology firm announced plans to launch an electric vehicle business and invest $10 billion over the next 10 years.