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Handset Market

In: Business and Management

Submitted By vitmickey
Words 793
Pages 4
In Q2 2014, the world’s largest smart phone market, mainland China, accounted for 37% of global shipments – some 108.5 million units. Of the top five vendors in China this quarter, all but one were local companies. And perhaps more impressively, that home-grown success continues in the top 10, where eight vendors were Chinese. In little over a year, Xiaomi has risen from being a niche player to become the leading smart phone vendor in the world’s largest market, overtaking Samsung in volume terms in Q2. Xiaomi took a 14% share in China, on the back of 240% year-on-year growth. With Lenovo, Yulong, Huawei, BBK, ZTE, OPPO and K-Touch, the eight Chinese vendors in the top 10 together accounted for a total of 70.7 million units and a 65% market share. Samsung and Apple, the only international vendors in the top 10, together accounted for shipments of 20.0 million units, representing 18% of the overall smart phone market in China.

‘This is a phenomenal achievement for Xiaomi,’ said Shanghai-based Canalys Research Analyst Jingwen Wang. ‘Undoubtedly this was helped by an anticipated, temporarily under-strength Samsung performance during the quarter. But that is only half the story - Xiaomi has also executed on its strategy to grow volume shipments. It has delivered compelling products at aggressive price points, focused chiefly on its locally relevant MIUI software features and services, backed by effectively targeted marketing. In particular, its affordable RedMi range is booming and has been the driver for growth, despite attracting less global media attention than its flagship Mi products. But it does now need to deliver LTE products in China to address growing demand for 4G services if it is to retain its momentum.’

97% of Xiaomi’s Q2 shipments were into mainland China. It is now looking to expand into other markets, with Indonesia, Mexico, Russia, Thailand and...

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