Wednesday, August 6, 2014
Xiaomi had a vision to overtake Apple in China. However, they didn't just overtake Apple they also challenge Samsung by taking a lot on their market share.
China is the top single smartphone market in the world. Canalys research indicated that 37% (108.5 million handsets) of all smartphone shipments globally went to China. And with a high demand on advanced phone that caters 4G/LTE connectivity, Samsung got the top spot. However, not this time Xiaomi a newbie in smartphone industry have overtaken Samsung, they shipped 15 million units against Samsung's 13,200,000 units. Xiaomi eating 14% of the marketshare in China.
With a lot of Chinese smartphones to choose from (Huawei, Lenovo and ZTE) why Xiaomi? Lei Jun of Xiaomi said that their secret is they built up massive customer loyalty by letting their users involve in the development of features and software. Selling Xiaomi phones with very low margin also helped them since it lessen the cost of the phone that is easier to the consumer's pocket.
Jingwen Wang a research analyst said, "This is a phenomenal achievement for Xiaomi. Undoubtedly this was helped by an anticipated, temporarily under-strength Samsung performance during the quarter. But that is only half the story Xiaomi has also executed on its strategy to grow volume shipments. It has delivered compelling products at aggressive price points, focused chiefly on its locally relevant MIUI software features and services, backed by effectively targeted marketing.
As for exporting of Xiaomi's phones, only 3% are exported to other countries. However, this will not stay that way since the company is aiming to conquer other emerging market like India. The 15,000 units of Mi3 were sold in just 2 seconds in India.
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