You may or may not know, recently Xiaomi has became the world’s No.2 for the first time for global smartphone shipments in Q2 2021. This achievement was confirmed by data reports of IDC, Canalys, Strategy Analytics and Counterpoint, top four global market research companies.
You can refer the reports and links at below:
IDCÂ :Â Xiaomi hit record volume this quarter and year-over-year growth of 86.6%.
Canalys: Xiaomi took second place for the first time ever, with 52.8 million units at 83% growth.
Canalys expressed that Xiaomi is now transforming its business model from challenger to incumbent, with initiatives such as channel partner consolidation and more careful management in the open market. It commented that Xiaomi’s new goal is to displace Samsung to become the world’s largest vendor.
Strategy Analytics: Xiaomi jumped into the top 2 list for the first time ever. It shipped 52.8 million units of smartphones worldwide in Q2 2021 and took 16.8% market share. Among all top 5 vendors, Xiaomi registered the highest annual growth rate (+85.3% YoY).
Counterpoint: Xiaomi eclipses 50 million smartphones, becoming the world’s second-largest smartphone brand for the first time ever.
So, now we know that Xiaomi has taken the second spot from Apple for global smartphone shipment, but how did they really achieved it? Here is what I think how and why.
Firstly, the variety price range that suit many consumers to consider within their budget. As the smartphone industry knows, Xiaomi has a huge line-up of smartphones that are capable to offer various price range for entry level to high end premium smartphone. The Redmi series and POCO brand has always been the go to for consumer who wants the most value for money device while the Mi series is usually catered for users who wants the premium and the latest features.
Also, Xiaomi was also well-known in the industry to be earning a lower margin for each device sold, therefore, it offered customer with price that is hard to say no. For example: When the Mi 11 (8GB RAM +128GB) was launched in Malaysia, it has managed to set a starting price of RM2,799 and the nearest competition (Samsung Galaxy S21 (8GB RAM + 256GB) starting price is at RM3,699 and Apple iPhone 12 (64GB) starting price is at RM3,899) just couldn’t match the price as Mi 11 is also offering a similar premium experience and features. Xiaomi’s aggressive pricing has definitely won the hearts of the consumer and don’t expect them to slow down any soon.
Secondly, the quickness of releasing smartphone to capture each region market share AS SOON AS POSSIBLE. I’m not kidding when I’m mentioning about how quick Xiaomi can release smartphones after each of its launch events. Most of the time, the Xiaomi devices will be ready for pre-order on the next day (or few days later) after the launch and capable to deliver the device within 1-2 weeks (also depends on the pre-order campaign period). This strategy has managed to let Xiaomi captured the interest of the customers when the hype train for the product is still hot.
There aren’t many brands capable of doing what Xiaomi is currently doing and some of them tend to start reaching the market when the hype train was gone. Not only that, in 2021, we also saw a massive influx of smartphones released by Xiaomi (Xiaomi has just launched the POCO X3 GT, Redmi Note 10S Starlight Purple and Redmi 9C 4GB RAM+ 128GB in Malaysia as of the time of writing this article) at various region has left the competition struggle to keep up with the pace.
Last but not least, features that matters the most to consumers. Although it is impossible for a smartphone maker to make one perfect device that suits everyone, Xiaomi has a serious strategy to overcome it. You definitely can see the marketing strategy of a modern Xiaomi smartphone; better cameras, longer battery life, faster charging speeds, fast refresh rate, large display and amazing performance for work and play. All this points has ticked the box for every customer hence making it an easy decision to purchase one.
There is no doubt that Xiaomi has slowly became one of the trendsetter for the current smartphone industry and it is good for the competition. Why? The competition will need to plan better for their upcoming products where us, the consumers, will benefit it the most. Now is the time to see how each of the smartphone brands deliver not just value, but features and after sales service that matters the most to the consumer. Only time can tell how is the tide has turned and it will be a race to the top from now on.
*This article is an opinion piece that has been observed by the writer on the current smartphone industry. Also, there is no affiliation with any brand and shall not be replicated or used for any marketing purposes.