According to Canalys statistics, Xiaomi accounted for 17% of the global smartphone market share in the last quarter, leading Apple (14%) and only behind Samsung Electronics (19%). Overall, Xiaomi’s phone shipments grew by 83% year on year, outpacing Samsung Electronics’ 15% and Apple’s 1%.
Xiaomi is growing its business in foreign markets rapidly. In particular, the number of smartphones exported by this company to Latin America increased by 300% and 50% in Western Europe over the same period last year, Ben Stanton, head of research at Canalys, said.
However, Xiaomi’s target audience is mostly low- and middle-income consumers and the price for the company’s devices will be 75% cheaper than Apple products. This will have a significant impact on the company’s revenue, the number of products sold is large, but the revenue may not be high.
In the future, Xiaomi is looking to enter the high-end market segment. As an example, earlier this year, Xiaomi launched the high-end smartphone Mi 11 Ultra, priced from 5,999 yuan ($928). Besides, Xiaomi also launched its first foldable phone, Mi Mix Fold for 9,999 yuan.
That price helps Xiaomi “comparable” with Apple and Samsung in the high-end segment. Not only Xiaomi, domestic rivals Oppo and Vivo are also trying to penetrate this segment, which will be a competition that causes difficulties for Xiaomi, when the two giants Oppo and Vivo have the same goal. Both companies will be willing to invest heavily in marketing to assert the brand in a way that Xiaomi cannot.
According to experts, although smartphones are still the product that generates the majority of revenue for Xiaomi, the company is also looking to enter new business areas to grow and increase profits. Last March, Xiaomi announced plans to launch the electric vehicle business and invest $10 billion over the next 10 years.