Business, Mobile

China’s Xiaomi Becomes World’s 5th Largest Smartphone Manufacturer: Strategy Analytics

According to a report by Strategy Analytics, China’s Acclaimed Xiaomi has become the fifth largest smartphone maker in the world, holds 5.1 percent of the global market share, up from 1.8 percent this time, as comparison to last year, reported by Times of India.

“Xiaomi’s next step is to target the international market in Asia and Europe, where it will have to invest big money to familiarize Western consumers with its unfamiliar brand name,” said Strategy Analytics director Woody Oh, who called Xiaomi the star performer in the second quarter.

Till date, Xiaomi had launched three smartphones in India: The Mi3Redmi 1S and Redmi Note. The comapny had launched the Mi3 smartphone through an e-commerce site Flipkart and sold out less than 10,000 units in about half an hour. A week later, Flipkart hosted the second sale of Mi3 devices but it was over in a matter of seconds as the phones sold out.

“For our last sale on July 29, more than 200,000 people had registered. Flipkart saw an unprecedented 250,000 users simultaneously accessing the Mi3 page shortly after the last sale opened on July 29,” Manu Jain, head of India operations for Xiaomi, told ET Magazine. Jain says that over 20,000 Mi3 handsets have been sold so far in India.


The other smartphone maker, Motorola is being intimidated by the entry of Chinese phone makers, as it announced a price cut of INR2000 (USD 32) for its Android phone since its launch five months back. The company recently announced it had sold 1 million phones in India through its exclusive partner Flipkart. Motorola was bought by Lenovo from Google, now the fourth largest smartphone manufacturer in the country.

Also, Samsung is expected to launch three new phones: the Galaxy Star 2, the Galaxy Star Advance, and the Galaxy Ace NXT  priced at INR 5100 (USD 83), INR 7,400(USD 121), and INR 7,400(USD 121) respectively. The Galaxy Star Advance and the Galaxy Star 2, both non-3G devices, comes with a 4.3-inch and a 3.5-inch display and Galaxy Ace NXT is a 3G phone with a 4-inch display.

As Xiaomi is now the 5th largest smartphone maker in the world and Globally, smartphone shipments grew by 27 percent annually reaching 295 million units in the second quarter of 2014.

strategy analysis

See Also: Xiaomi Sells Over 26 million Smartphones in 2014 H1; Plans to Sell upto 60 million this Year

Samsung’s market share went down to 25.2 percent in second quarter of 2014, from 32.6 percent in Q2 of 2013. Apple market share shrink to 11.9% from 13.4% and remained at second place. China’s Huawei grew up with 6.8 percent and Lenovo with 5.4 percent of the global market share and are at the third and fourth positions respectively.

According to the report, Both Samsung and Apple lost market share in the quarter, as Huawei, Lenovo and Xiaomi all gained on the top two vendors.

Besides this, Xiaomi has launched its new flagship smartphone in China, the Mi 4. It has powered by a high performance Qualcomm Snapdragon 801 processor, a 13-megapixel camera on the back, metal finish like the iPhone with a higher resolution screen priced at USD 320.

“Xiaomi’s Android smartphone models are wildly popular in the Chinese market and it shifts millions of them every quarter through its extensive online and operator channels,” Oh said.

India Today says: Currently, Xiaomi mainly plays in markets with poor LTE penetration, but it’s Mi 4 is its first LTE ready smartphone. This will also mean that it will have an edge over Lenovo, which as of now does not have many LTE ready phones. That said, this will eventually change once it completes acquiring Motorola Mobility from Google.Besides this, Xiaomi’s business model helps it to sell high quality products for much lesser than manufacturers like Samsung and Apple.
CNet says: In a separate report released Wednesday, Strategy Analytics said Google’s Android mobile operating system continued to dominate the smartphone market, taking 85 percent of market share for quarterly shipments, up from 80 percent a year ago. Apple’s iOS was a distant second, with 12 percent, followed by Windows Phone at just under 3 percent.
Times of India says: Three out of the world’s top 5 smartphone sellers were Chinese manufacturers in the second quarter, Strategic Analytics said, as China’s low-cost offerings on the Android operating system whittle away Samsung’s market share.
Forbes says: Xiaomi can at least afford to continue focusing its efforts on China, where Apple is getting a more sure footing – Cupertino is betting that its recently inked partnership with leading carrier China Mobile will lead to greater sales. The global smartphone market also saw strong demand in Asia and Africa, and sluggish volumes in North America and Europe thanks to changes in the operator subsidy mix, Strategy Analytics says.
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  2. 2

    Xiaomi Mi3 is already an out of date phone in China with the launch of Xiaomi Mi4 last month. Seems like the company is dumping unsold devices in India where the brand is relatively new and people are not much aware. Something like fooling people………..

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      Not every country in the world is running in parallel. What is outdated in one market could turn out to be innovative in other. For example Chocolate for cocoa farmers in Ivory Coast. Xiaomi gained their critical mass in China and are now taking on rest of Asia and next will move on to Europe. In the process they are ensuing full value to every customer, without which they will fail as a company. They are bang on with their growth strategy I would say.

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