China’s Xiaomi rises to become world’s third-largest smartphone vendor

Xiaomi headquarters in Beijing, China.

Xiaomi headquarters in Beijing, China.

Despite facing criticisms for its security practices, Chinese handset maker Xiaomi has outpaced rivals to become the third-largest smartphone maker in the world, trailing Samsung and Apple, according to a latest report by the market research firm IDC.

Since recruiting former Google executive Hugo Barra, Xiaomi has been making impressive strides by more than doubling its sales following international expansion. The company’s focus on China and adjacent markets resulted in triple-digit year-over-year growth taking Xiaomi into the Top 5 list.

The four year old company has already surpassed handset manufacturers such as LG, Lenovo and HTC who have been longer in the industry. Xiaomi which currently sells smartphones only in a few developing countries has been the top seller in China and recently entered India, where it sells phones exclusively through Flipkart.

“Key to its success was the launch of its Mi4 smartphone in August, which was positioned as a high-end alternative to the status quo. What remains to be seen is how quickly the company can move beyond its home territories to drive volumes higher,” IDC added.

Xiaomi has sold nearly 19 million smartphones and holds a market share of 5.3 percent leaving behind Huawei that sold 16.8 million smartphones, according to market researcher IDC. And unlike global players Samsung and Apple, it’s a huge deal for Xiaomi since its availability is limited to only China, India, Singapore and a few other countries. In India, both its smartphones Mi 3 and Redmi 1s are a big hit and already on its way to dethrone Samsung as the smartphone market leader.

Even in terms of smartphone shipments this year Xiaomi emerges as the clear winner, since both Samsung and Apple experienced significant reduction in their sales compared to a year ago.

Xiaomi’s ticket to fame comes from selling inexpensive devices that are packed with high-end features. Moreover, its phones are known to cost just a little over the total price of the components. To maintain low costs, they don’t have any physical retail outlets, but depend on online retailers and social media for getting the word out and selling products online.

It hasn’t been a smooth ride for the Chinese company. The company has been incriminated for creating an artificial demand with limited product runs. And more recently, it has also been accused of sending private data to Chinese servers, following which the company has moved some servers outside the mainland.

 

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

Tesla expected to make a killing in Bitcoin profits in next earning report

Tesla expected to make a killing in Bitcoin profits in next earning report

The price of Bitcoins has rallied to another high in October after hitting around $64,800 in April. This time it has hit over $58,000 on Oct. 14.
13 hours ago
Tesla Cybertruck V/s Rivian’s R1T

Tesla Cybertruck V/s Rivian’s R1T

The Tesla Cyberturck left many disappointed with its alien space ship-like design; though both trucks are still under production, what matters most is what comes under the hood.
2 days ago
College sports is multibillion dollar industry in the US

College sports is multibillion dollar industry in the US

According to data analyzed by GOBankingRates, head football coaches, closely followed by basketball coaches, easily rack up seven-figure salaries in the US.
3 days ago
Top women influencers in finance and wealth management

Top women influencers in finance and wealth management

It is only in the last century or so that women have been publicly acknowledged for their roles as leaders in various fields. Here’s a list of women influencers by Industry Leade
4 days ago
Brian Goldner, who led Hasbro’s transformation into an entertainment giant, passes away at 58

Brian Goldner, who led Hasbro’s transformation into an entertainment giant, passes away at 58

Brian Goldner, the CEO and Chairman of toymaker Hasbro, has died at age 58, the company said Tuesday (Oct. 12).
6 days ago
JPMorgan Chase CEO Jamie Dimon slams Bitcoin as worthless

JPMorgan Chase CEO Jamie Dimon slams Bitcoin as worthless

JPMorgan Chase CEO Jamie Dimon took another potshot at Bitcoin on Monday by calling the cryptocurrency “worthless” likening trading BTC to smoking cigarettes.
7 days ago