Lenovo to challenge Xiaomi for #3 position after Motorola deal

Following the acquisition of Motorola Mobility business from Google for $2.9 billion, Lenovo is set to challenge Xiaomi for #3 position.

IDC, a market research agency, says Xiaomi improved its smartphone market share to 5.3 percent in Q3 2014 from 2.1 percent in Q3 2013. Q3 smartphone market share of Lenovo increased to 5.2 percent from 4.7 percent, while LG increased market share to 5.1 percent from 4.6 percent.

ALSO READ: Xiaomi becomes #3, Samsung share dips to 23.8% from 32.5%

But a report from Strategy Analytics features LG and Huawei in the fourth and fifth positions based on their smartphone shipments.

According to Strategy Analytics and IDC, Xiaomi is the third largest smartphone vendor in the world. Strategy Analytics, which does not feature Lenovo in the top five smartphone vendors, said Xiaomi market share improved to 5.6 percent in Q3 2014 from 2.1 percent in Q3 2013.

Neil Mawston, executive director at Strategy Analytics, said: “Xiaomi was the star performer in the quarter, capturing a record 6 percent marketshare and rising into third place in the global smartphone rankings for the first time ever.”

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Strategy Analytics’ smartphone market share report noted that Xiaomi’s Android smartphone models are wildly popular in the Chinese market and it shifts millions of them every quarter through its extensive online and operator channels.

Xiaomi’s next step is to target the international market in Asia and Europe, where it may face stronger headwinds of low brand awareness and technology-patent challenges next year.

IDC said the launch of Mi4 smartphone in August was the key to the success of Xiaomi. It is not known what will be the impact on the recent allegations that Xiaomi is sharing mobile phone user data with its head quarter’s in China.

Lenovo gained at home and abroad. Sub-$100 smartphones like the A369i and A316 drove volumes from emerging markets in Asia Pacific and the Middle East and Africa, said IDC. Domestically, it launched a number of 4G handsets, with some at lower price points.

Strategy Analytics said global smartphone shipments grew 27 percent annually from 252.9 million units in Q3 2013 to a record 320.4 million in Q3 2014. Smartphone growth was mixed on a regional basis during the quarter, with healthy demand in Asia and Africa counterbalanced by sluggish volumes across North America and Europe due to ongoing changes in the operator subsidy mix.

Anand B
editor@gizmolead.com

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