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(Bloomberg) – Xiaomi Corp. became the second largest smartphone maker in the world in the last quarter after an 83% increase in shipments, according to preliminary estimates from Canalys.
This marks the first time that Xiaomi, the Chinese maker of everything from rice cookers to gaming monitors, has ranked in the top two, historically dominated by Samsung Electronics Co. and Apple Inc. Samsung held a 19% share in second quarter, Xiaomi was 17% and Apple was 14%, according to data from the research company. Xiaomi shares climbed 4.1% on Friday, the best performance of Hong Kong’s benchmark Hang Seng.
Huawei Technologies Co. had briefly disrupted the ranking, until sanctions cut it off from essential chip supplies last year. Its withdrawal from the highly competitive smartphone market has prompted other Chinese vendors to spend aggressively on new hardware and upgrades. Xiaomi has been particularly active, launching two flagship devices in the first four months of the year. Its Mi 11 Ultra device has one of the largest camera sensors in a smartphone to date, underscoring the company’s ambition to move up into the premium price range.
“Compared to Samsung and Apple, its average selling price is approximately 40% and 75% cheaper, respectively,” said Ben Stanton, research director at Canalys. “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 an uphill battle, with Oppo and Vivo sharing the same goal, and both willing to spend a lot of money on above-the-line marketing to build their brands in a way Xiaomi isn’t. .
Read more: China Boosts Phone Market Recovery as Huawei Moves Out of Top 5
The overseas expansion has been the main driver of Xiaomi’s growth, with the company increasing its shipments by over 300% to Latin America, 150% to Africa and 50% to Western Europe, Canalys said. . Device maker Mi spent the first half of the year challenging the title of China’s biggest smartphone maker with rivals Oppo and Vivo, each holding roughly equal market share.
The second quarter is traditionally the quietest time for Apple and Samsung, as both prepare for the launch of new handsets in the following months. The iPhone maker has asked suppliers to build up to 90 million next-generation iPhones this year, a big increase from its 2020 iPhone shipments, Bloomberg reported earlier this week.
(Updates with Xiaomi actions in the second paragraph.)
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