Xiaomi has officially overtaken Apple to claim the position of the world’s second-largest smartphone manufacturer by global sell-through volumes, according to a report from Counterpoint.
Despite flat sales volumes on a month-over-month (MoM) basis, Xiaomi’s growth stands in contrast to Apple’s seasonal sales decline during the same period. The growth of the brand is significant but no real surprise given Xiaomi’s aggressive 5G device pricing and an economic recovery in key markets. But Apple is probably still not terribly concerned about this transition.
Xiaomi Surpasses Apple To Become 2nd Largest Smartphone Brand
Xiaomi’s approach has been key to its recent good fortunes. According to Counterpoint Research Director, Tarun Pathak, the brand has embraced a leaner strategy where it now focuses on producing one high-sell model in each price tier rather than flooding the market with multiple devices in every segment. Simply put, the Chinese smartphone company has revitalized its sales and marketing game and is growing its presence in territories they’re currently having sway over.
It has enabled the Chinese tech giant to continue its leadership in the entry-to-mid-tier spaces, while also making significant strides in the premium market with foldable and ‘ultra’ devices. One of the reasons why the Chinese tech giant has grown so quickly is due to their line-up of low-end and mid-range phones which have shown they really appeal to people in less affluent markets.
Despite Xiaomi’s remarkable ascent, its displacement of Apple may only be temporary. The Counterpoint report considers iPhone sales through August 2024, and with the recent launch of the iPhone 16 series, Apple’s sales are expected to surge in the coming months. Historically, iPhone shipments peak in the final quarter of the year. Furthermore, Apple still dominates the smartphone market in terms of revenue, leading the premium and ultra-premium segments where profit margins are higher.
Beyond smartphone hardware, Apple generates substantial profits from its ecosystem of services like iCloud, Apple Music, and Apple Arcade, further boosting its revenue per user. While the Chinese tech giant’s growth is significant, it is unlikely to impact Apple’s market dominance unless the Chinese tech giant continues to expand in the premium segment—a space it has begun to explore with devices like the Xiaomi 14 Ultra and its new foldable models. For now, Apple’s position at the top remains largely unchallenged.
FAQs
Why has Xiaomi overtaken Apple in smartphone sales?
Xiaomi’s competitive pricing on 5G phones and growth in key developing markets have contributed to its rise in global sales.
Will Xiaomi’s growth impact Apple’s dominance?
Unlikely in the short term, as Apple leads in revenue and the premium smartphone market, boosted by its strong ecosystem of services.
