According to a new Counterpoint report, Xiaomi surpassed Samsung to be the world’s number one smartphone brand for the first time in the month of June. Xiaomi smartphones accounted for a total of 17.1 per cent global market share by volume. Samsung and Apple followed with 15.7% and 14.3% market share, respectively.
Considering the results of the entire second quarter, Samsung still retained its lead and Xiaomi still made it to the second position. Xiaomi has achieved this success in a short span of around 10 years.
Will The Momentum Continue?
The company was founded in 2010 and released its first smartphone in 2011. To date, it has shipped over 800 million smartphones. The Chinese smartphone maker has been the best selling smartphone brand in India for a while and managed to surpass Samsung first in Europe and then globally.
As the Counterpoint report notes, Huawei’s decline significantly contributed to Xiaomi’s growth in the quarter. The company managed to fill the gap left by Huawei and Honor in Africa, China, Europe, and the Middle East. Xiaomi was also the fasted growing brand in its home country China, thanks to the remarkable response received by Redmi 9, Redmi Note 9 and Redmi K series.
Counterpoint’s report notes that Xiaomi may continue to enjoy the pole position for some more time till the situation normalizes in Vietnam. The country is currently reeling under pandemic stress, which has also had a negative impact on Samsung’s production units in the country. Once the market opens up, Samsung is expected to bounce back and regain the top spot.
The Lead is In Terms Of Sales Volume, Not Profit
Of course, the lead is in terms of smartphone sales and not total revenue. Since a large portion of Xiaomi’s success can be attributed to its affordable Redmi phones that sell at razor-thin margins, Samsung and Apple should be raking in considerably higher profits.
In its earnings release, Samsung reported a 20% increase in sales, and a 54% increase in profits Year-on-Year (YoY). Apple also posted record earnings ae quarter riding on the success of its new smartphones. iPhones sales grew by a stunning 50% YoY.