Xiaomi took a huge leap in the global smartphone market, beating Apple in August 2024. Xiaomi is now the number two in the world, leaving only Samsung ahead of it, according to a recent report from Counterpoint Research.
Strong Growth Amid Market Challenges
Xiaomi stuck to stable sales in August 2024, while Apple had a decline due to seasonal reasons. Although Xiaomi went through problems in its supply chain in 2022 and the first half of 2023, it has readjusted its product strategy and sales channels to series of continuous year-on-year growth in 2024.
Strategic Focus of Xiaomi on Flagship Models
The other main reason for Xiaomi’s success has been the lean product strategy. Where every other brand is bombarding the market with multiples of devices in the same price bracket, Xiaomi has stuck to offering only one flagship model per segment. This has helped the brand nail both the entry-level and premium brackets quite well.
Expansion into New Markets and 5G Popularity
Boasting more than 25% growth, aggressive expansion by Xiaomi into new markets, including but not limited to India, Latin America, Southeast Asia, and the Middle East, contributed to its growth. With several competitively priced 5G devices in a series such as Redmi 13 and Note 13 series, the brand finds a place in emerging markets and records an increased market share.
Success in the High-End Segment
While Xiaomi still holds a strong grasp on the low and middle-range markets, it certainly hasn’t been lagging in putting up a good performance in the high-end segment of smartphones. Foldable devices and Ultra-series smartphones have also allowed Xiaomi to compete more effectively with premium brands such as Apple and Samsung.
Looking Ahead to 2024 and Beyond
Xiaomi’s 22% year-over-year growth in 1H24 was again testifying to well-run strategies. Although the growth is expected to be softer in 2H24, Xiaomi is en route to delivering robust double-digit growth for the full year. While continuing with innovation and market expansion, Xiaomi is set to challenge competitors in both emerging and premium smartphone markets.
