With Huawei ousted from the western market, the real question was no more obbut rather when Xiaomi takes second place in the smartphone business. According to the analysis company Canalys, Xiaomi reached this milestone for the first time in the second quarter of 2021. Almost exactly 10 years after the first smartphone, the Xiaomi Mi 1, the Chinese manufacturer overtook Apple. Compared to the “weak” Corona last year, Xiaomi was able to achieve 83% growth in global smartphone sales, according to Canalys, and the front runner Samsung is within reach. In this article we take a look at the general development in the smartphone market compared to last year. After the pandemic year in Q2 2021, the mobile phone market is picking up by 12%.
China cell phones have become an indispensable part of the smartphone market
The number 1 remains with the manufacturer Samsung with a market share of 19% and can show a remarkable growth of 15% compared to the previous year. Apple falls back to 3rd place with a small growth of one percent and a market share of 14%. The other 3 places in the “Big 5” of the smartphone industry are taken by the China manufacturers Xiaomi, Oppo and Vivo. Xiaomi’s crazy growth of 83% is most likely due to the Huawei problem. Oppo and Vivo will of course also benefit from the elimination of the competitor Huawei outside of China. At the beginning of the year Joscha wrote an exciting article on the question “Who will get Europe’s smartphone market?” released. Xiaomi brought 50% more devices to men in Western Europe alone compared to the previous year. In Africa it is 150% and in Latin America even 300%, but you have to consider that Xiaomi is still in its infancy on these continents. In any case, there is enough potential for first place for Xiaomi.
Oppo and Vivo have also come to Europe with the “Google ban” on Huawei smartphones and it seems to be working. Sure, there is also a lot of growth in China, where Huawei was represented with a huge market share and the sanctions against the company not only prevent the use of Google, but the manufacturer can hardly buy hardware for its smartphones. Oppo grows 28% compared to Q2 2020 and Vivo also grows 27%. This brings it both to a market share of 10% and take 4th and 5th place in the list. In these statistics from Canalys, it remains questionable whether the BBK manufacturers OnePlus and Realme are also included under Oppo. Vivo is also often mentioned in combination with BBK, but is definitely listed individually here and also operates completely independently compared to the two companies that are close to Oppo.
What’s next for Xiaomi
The data shows that Xiaomi makes a lot of sales, but the sales cannot keep up with the competition by far. According to Canalys, that is Average selling price of a Xiaomi smartphone is 40% cheaper than Samsung and a huge 75% cheaper than Apple. The problem for Xiaomi in particular is that in the high-end sector, money is earned with smartphones. Xiaomi achieves a much lower profit than the two competitors with dumping prices in the middle class. The pure sales figures show that the strategy is still working. But sooner or later Xiaomi also has to venture into the profitable flagship market. As an alternative, there are also other sources of income such as “advertising in the MIUI system ” for Xiaomi. The last two flagships were the Mi 10 and Mi 11, but neither did they stand out from the competition in terms of performance in the test or price. While the big manufacturers let Xiaomi poach unhindered in the middle class, smartphones over 1000 € immediately call Oppo, Vivo, OnePlus, Apple and Samsung on the scene. With a statistic on “Who earns the most money on the smartphone market”, Xiaomi would certainly end up far behind.
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