Xiaomi Overtakes Samsung In The Chinese Smartphone Market | TechTree.com

Xiaomi Overtakes Samsung In The Chinese Smartphone Market

The budget Redmi series provided the boost for Xiaomi to become China's largest smartphone vendor.

 

Chinese smartphone manufacturer Xiaomi became the leading smartphone vendor in China, with shipments exceeding that of Samsung's for the first time in the second quarter. According to research firm Canalys, Xiaomi controlled 14 percent of the Chinese smartphone market, putting it ahead of Samsung, Lenovo and Yulong with 12 percent each.

The shift accounts for quite a large change in Xiaomi's market share, which stood at 10.7 percent in the first quarter of this year. Canalys claims the the company's budget Redmi series – Redmi, Redmi 1S and Redmi Note - helped account for the boost in the second quarter.

In the first quarter of this year Samsung's market share stood at 18.3 percent while Lenovo's stood at 11 percent. It's clear that the Korean manufacturer's recent ill fate in the Chinese market has been one of the defining factor in the fall of global sales volumes reported in the second quarter.

“The aggressive pricing points for top-notch products is an important reason that led to its success,” said Jingwen Wang, analyst at Canalys, in an interview with WSJ. “Both its Mi (flagship) series products and Redmi series products are price-competitive devices and feature top-notch chipsets, displays and cameras.”

[Also read: Xiaomi's Mission Impossible: Becomes 5th Largest Phone Manufacturer]

Part of bringing high-end specifications at entry-to-mid range smartphone price points is Xiaomi's strategy of selling its devices directly through its own e-commerce store front. The company avoids extra expenses which would usually be paid to distributors and sellers, and promptly passes on the benefits to its customers.

It's clear that Xiaomi, along with other Chinese manufacturers have been instrumental in Samsung's decline in market share. The trend isn't restricted to just China, with the Korean giant's share of the global smartphone market falling to 25 percent from a high of close to 35 percent last year.


TAGS: Xiaomi, Mi 3, Xiaomi Redmi, China, Samsung, budget smartphone

 
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