Xiaomi Surpasses Apple to Become Number Two Worldwide Smartphone Vendor in Q2 2021

[MacRumors]

Apple was the number three worldwide smartphone vendor in the second quarter of 2021, according to smartphone shipment estimates shared today by Canalys.

Apple's iPhone sales were surpassed by smartphone sales from Samsung and Chinese smartphone maker Xiaomi, with Xiaomi surpassing Apple and taking the number two spot for the first time.

Samsung was the most popular smartphone vendor with 19 percent market share and 15 percent growth, while Xiaomi earned 17 percent market share thanks to an 83 percent growth in smartphone sales during the quarter. Apple was responsible for 14 percent market share, followed by Oppo and Vivo with 10 percent each.

Xiaomi's growth is thanks to overseas business, with the company increasing shipments by more than 300 percent in Latin America, 150 percent in Africa, and 50 percent in Western Europe. Xiaomi is known for selling more affordable smartphones, and its average selling price is around 75 percent cheaper than Apple's iPhones.

Going forward, to overtake Samsung, Canalys suggests that Xiaomi will need to increase its sales of high-end devices like the Mi 11 Ultra, which is priced at over $900.

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 a tough battle, with Oppo and Vivo sharing the same objective, and both willing to spend big on above-the-line marketing to build their brands in a way that Xiaomi is not. All vendors are fighting hard to secure component supply amid global shortages, but Xiaomi already has its sights set on the next prize: displacing Samsung to become the world's largest vendor.

Global smartphone shipments vary from quarter to quarter, and it's usually Apple and Samsung taking the first and second spots. In the fourth quarter of 2020, Apple was the number one smartphone vendor in the world due to strong sales of the iPhone 12 models, so Apple may overtake Xiaomi in subsequent quarters as the launch of the iPhone 13 approaches.

Article Link: Xiaomi Surpasses Apple to Become Number Two Worldwide Smartphone Vendor in Q2 2021

 

[ghanwani]

Apple is about quality not quantity. In this case, quality is average selling price.

 

[farewelwilliams]

Xiaomi is that kid in school who copied off of your homework and told everyone he got good grades.

 

[alpi123]

Apple is about quality not quantity. In this case, quality is average selling price.

That's true, they have more variety.

Comparing iPhones with other flagship devices (Mi Pro, Galaxy S/Note, Mate Pro, Huawei P, etc), iPhones are still being sold the most worldwide.

 

[mannyvel]

They make 8-10% or $2/phone, depending on the source. So I guess that's units, not revenue or profit share.

 

[Michael Scrip]

Apple is about quality not quantity. In this case, quality is average selling price.

Exactly.

I counted over 60 smartphones on Xiaomi's website.

 

[B4U]

Isn't this called dumping?

 

[Apple_Robert]

I will stick with number 3 Apple for the win. Not interested in Xiaomi's Android devices.

 

[One2Grift]

No surprising at all. The lower cost devices will almost always proliferate the market space. As Apple doesn't currently compete in the lower cost market spaces they will be surpassed almost every time. For these manufacturers, very low margins are made up with high volume.
Places where consumers have significantly less spending power will be a boon to these manufacturers and a viable option for that monetarily tighter consumer.

 

[TallManNY]

Apple is so lucky that these reports are out there. It makes all the many anti-trust challenges that Apple faces much easier to defend against. Apple just has to point to their relatively modest portion of the market. Meanwhile Apple gets to sit there with a monopoly on iOS, all software sales into iOS, access to all users of iOS, and huge lead in the quality of the chips running the phones (and a monopoly on using those chips).

 

[Yokon54]

I don’t think Apple cares.

 

[sw1tcher]

Xiaomi is growing and taking market share from Huawei due to them not being able to get chips and access to Google's Play store. That's why they saw 83% growth.

Xiaomi grabs market share from Huawei on surging smartphone sales

Chinese phone maker's global shipments up 69%, Q1 sales rise to $12bn

asia.nikkei.com

Xiaomi Posts Profit Jump After Taking Huawei’s Market Share

Xiaomi Corp. reported a 37% increase in quarterly profit as China’s top smartphone maker took advantage of Huawei Technologies Co.’s retreat to consolidate its lead in the market.

www.bloomberg.com

 

[lolOwO]

Apple is so lucky that these reports are out there. It makes all the many anti-trust challenges that Apple faces much easier to defend against. Apple just has to point to their relatively modest portion of the market. Meanwhile Apple gets to sit there with a monopoly on iOS, all software sales into iOS, access to all users of iOS, and huge lead in the quality of the chips running the phones (and a monopoly on using those chips).

apple controlling the platform they built from the ground up isn't a monopoly

 

[Agit21]

Love Xiaomi ❤️

 

[sw1tcher]

Apple is about quality not quantity. In this case, quality is average selling price.

Creating the SE and moving some manufacturing to India means Apple does care (to some extent) about quantity.

Apple starting iPhone 12 production in India; Analysts say 2021 could be its best year - ET Telecom

Apple Iphone 12: Apple, though, isn't yet starting manufacturing of its Pro models under the iPhone 12 series and will continue to import for domestic demand.

telecom.economictimes.indiatimes.com

NEW DELHI: Apple is starting production of its latest 5G-ready iPhone 12 smartphone in India for local customers, deepening its local manufacturing operations, a move which analysts say would help the Cupertino-based company reduce the high cost of the imported device due to an import duty levy and boost its volume share further in the world’s second largest market.

 

[rippley5150]

Love Xiaomi ❤️

When I lived in China I purchased a Redmi 2. I thought it was a decent phone, no issues and it did what I needed it to.

 

[TheYayAreaLiving 🎗️]

Quality v/s Quantity!- Apple: The seamless eco system.

Won't be too long. 90 Million iPhones orders are in place as I speak. Come September iPhones will still be backordered LOL!

Apple = 1% growth? Makes no sense.

According to Canalys, Xiaomi is growing its overseas business rapidly,” said Canalys Research Manager Ben Stanton. ” WOW! Not just in China but Latina America too. Have to give them credit where it's due.

 

[Mojohanna32]

Creating the SE and moving some manufacturing to India means Apple does care (to some extent) about quantity.

Apple starting iPhone 12 production in India; Analysts say 2021 could be its best year - ET Telecom

Apple Iphone 12: Apple, though, isn't yet starting manufacturing of its Pro models under the iPhone 12 series and will continue to import for domestic demand.

telecom.economictimes.indiatimes.com

NEW DELHI: Apple is starting production of its latest 5G-ready iPhone 12 smartphone in India for local customers, deepening its local manufacturing operations, a move which analysts say would help the Cupertino-based company reduce the high cost of the imported device due to an import duty levy and boost its volume share further in the world’s second largest market.

I'd argue that they care about access. Without mfg in India, they had to pay extremely high import duties. This made the iPhone unobtainable for all but the true elite in India. With mfg in country, better access, better share, but still targeting the same demographic. They aren't selling in the same space as Xiaomi for a large portion of the market.

 

[Analog Kid]

This can’t be true— I keep hearing Apple is a monopoly!

 

[Guacamole]

not even for free I would want that phone

 

[InGen]

This is great news for Apple in regards to avoiding anti-trust sentiment. Apple can now play themselves down as a company that is (temporarily) losing market share and might actually be able to return corporate focus to it’s ecosystem and technology and not exhausting itself in courtrooms explaining itself to tech-illiterate politicians & greedy regulators.

I suspect much of Xiaomi’s growth is coming at the expense of the others in the Android market.

 

[LFC2020]

Not hard to do when you’re selling $100 so called smartphones full of ads ?‍♂️?

 

[Aoligei]

No surprising at all. The lower cost devices will almost always proliferate the market space. As Apple doesn't currently compete in the lower cost market spaces they will be surpassed almost every time. For these manufacturers, very low margins are made up with high volume.
Places where consumers have significantly less spending power will be a boon to these manufacturers and a viable option for that monetarily tighter consumer.

It doesn’t matter. Entry level to Mid-tire level phone is more than enough for most people. Not everyone need $1000 dollar phone.

If Apple doesn’t compete with mid-range market, then what is iPhone SE doing? $399 iPhone SE is essentially Apple’s response to growing market for mid-range phone.

Xiaomi also have some decent high end phone. Take Xiaomi Mi 11 Ultra with Snapdragon 888, 120Hz OLED panel, decent camera setup.

Just because Xiaomi doesn’t sell phone in North America, doesn’t mean they only sell cheap phone in third world countries.

 

[Moonjumper]

I have a Xiaomi phone for Android development. It is an exceptionally good phone for the price. It is what I would go for if I left iPhone for Android, but that isn't happening soon.

 

[Aoligei]

Not hard to do when you’re selling $100 so called smartphones full of ads ?‍♂️?

That is so far from reality