Samsung dethroned by Xiaomi in China

Samsung has lost its tag of being China’s top smartphone vendor to Xiaomi — after holding onto the position for two straight years, said Canalys.

In the second quarter of 2014, Xiaomi became China’s top smartphone vendor by grabbing 14 percent the market share whereas Samsung had to settle down with the second position with 12 percent, just 20,000 units ahead of the third vendor Lenovo.

China’s smartphone market accounted for 37 percent of global shipments in the second quarter. The top eight vendors of china accounted for 70.7 million units and 65 percent market share said Canalys.

Except Samsung, four out of five top smartphone vendors of China are local companies. Lenovo, Huawei, Yulong are the other vendors in China’s smartphone market.

Canalys said 97 percent of Xiaomi’s shipments in the second quarter were into mainland China. It is now looking to expand market in Indonesia, Mexico, Turkey, Russia and Thailand. Xiaomi’s low end series of phones Redmi reached almost 15 million shipments in the second quarter.

Xiaomi has already sold 26.1 million phones in the first quarter, and aims to sell 60 million phones by the end of the year. Company’s aggressive pricing is becoming its key to success. Xiaomi is selling the high end phones at affordable prices.

Xiaomi smartphone share in China

This will be the first time any Chinese company has taken the top spot amongst the smartphone vendors. Xiaomi is only a 4 year old mobile phone company. Xiaomi’s successful marketing efforts and operation of its own e-commerce website and software development have helped it stand different from other low cost phone makers in China.

Xiaomi has already entered the club of top 5 smartphone vendors worldwide. It will be interesting to see if it could become one of the top three mobile companies alongside Apple and Samsung. Xiaomi is different from other major smartphone makers because it sells its phones close to the manufacturing cost, and makes profit through services such as mobile applications.

Canalys report shows that 292.4 million smartphones were shipped in the second quarter of 2014, growing 23 percent yearly, and 5 percent over the first quarter.

After losing market share in China’s smartphone market, Samsung still holds the top spot at the global market by retaining 26 percent.

It was Samsung’s lowest market share in last two and half years. In the second quarter of 2013 its share was 32 percent dropping down to 31 percent in the first quarter of 2014.

Samsung still managed to have a huge lead over other top smartphone vendors in market such as Apple (12 percent), Huawei (7 percent), Lenovo (5 percent). Xiaomi also managed to get 5 percent hold of the market share worldwide.

editor@gizmolead.com

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