Chinese smartphone maker Xiaomi had a stellar second quarter in 2021 that helped the company claim the No. 2 in global smartphone shipments with a stunning 85% year-on-year growth for the quarter and accounting for a 17% share in the global market. The smartphone maker surpassed Apple – who accounts for a 14% global market share – for the first time.
The surge in growth and sales has put the smartphone maker marginally behind tech giant Samsung who has a market share of 19%. According to the analysts, pricing has played a major role in Xiaomi’s success as it offers relatively low-priced mobiles as compared to premium price offerings from Apple and Samsung. Reportedly, the selling price of Xiaomi handsets is 75% cheaper than that of Apple’s. However, amid the growing demand, Xiaomi is now looking to foray into the high-end market – with the launch of Mi 11 Ultra, a premium smartphone valued at USD 928. This premium smartphone has put it directly in competition with smartphone makers Apple and Samsung. Xiaomi is also facing competition from its domestic rivals Oppo and Vivo as they continue to make their entry into the high-end smartphone market. While the company is trying to gain a robust footing across the United States market, the smartphone brand has been successful in regions such as Africa, Western Europe, and Latin America. Xiaomi’s shipments surged more than 300 percent in Latin America, Africa recorded 150% surge, and near about 50% in Western Europe. Huawei’s – one of the biggest smartphone player in the world and Xiaomi’s rival – struggles in the United States that led to a massive plunge in its sales and revenue has also been advantageous for Xiaomi in securing the number two spot in the global market.
Analysts believe if the revenue growth continues at a steady pace, Xiaomi could also surpass to Samsung to become the number one smartphone in the world. Smartphones are the primary focus of Xiaomi’s venture and one of the major contributor to its revenue growth. But, the smartphone maker is eyeing ways to foray into new business areas and the company announced in March that it was planning to launch an EV business with an investment of USD 10 billion over the next decade.