Hopefully, the US Government does not interfere.
Canalys has recently published its report for Q2 smartphone sales. There’s some changes, really big. As the top five manufacturers have shifted positions again, in particular, Apple and Xiaomi.
According to their report, Xiaomi is now the second largest manufacturer in the world, overtaking Apple. According to Canalys researcher Ben Stenton, the reason for their continuous growth is that “Xiaomi is growing its overseas shipments business rapidly”. He also added that Xiaomi’s shipments increased more than 300% in Latin America, 150% in Africa and 50% in Western Europe. They have also noted that Xiaomi is transforming its business model from “challenger to incumbent” with initiatives such as “channel partner consolidation and more careful management of older stock in the open market”.
Seen on the chart above, Samsung is still claiming the crown for the top spot, with a 19% market share and a growth of 15% since Q1 2021. However, Apple has declined its position from second to third while Xiaomi is now in second place. Xiaomi had a 17% market share and has a massive growth of 83%. We believe the main reason for this is that Xiaomi constantly chunks out devices every few months or even weeks, with surprisingly great hardware for such a low price. However, it needs no saying that their software and optimization still needs attention and improvement, especially on their lower-end devices.
Apple, while having a positive growth, barely had growth this quarter, only having 1% growth but also, they have a decent market share of 14%. The other two are of course BBK’s Oppo and Vivo. Realme is still not part of the top five, but eventually, soon they will be.
Not surprisingly, Oppo and Vivo has a steady rise. According to Canalys, Oppo and Vivo share the same marketing strategy. By spending huge amounts in “above-the-line” marketing, they can achieve a high market share and a surprisingly high growth every quarter.
A major priority of Xiaomi this year is to grow sales of high-end devices, including premium midrangers and flagships such as the Mi 11 Ultra. However, according to Canalys, it will be a tough job considering Oppo and Vivo’s marketing strategies.
Canalys also noted that, due to the tremendously high growth, Xiaomi has got what it takes to defeat Samsung. We just hope the US government doesn’t interfere like the last time.