Samsung is no longer China's leading smartphone vendor, Xiaomi took its place

Samsung is no longer China's leading smartphone vendor, Xiaomi took its place
Last week, we told you that Xiaomi had surpassed LG to become the world’s fifth largest smartphone maker in the second quarter of this year (April - June). Reportedly, the company shipped 15.1 million handsets during Q2 2014, almost four times more than it did in Q2 2013. Most of these devices were shipped in China, and now we’re seeing that this helped Xiaomi dethrone Samsung to become the No. 1 smartphone vendor in the country.

According to Canalys, Xiaomi shipped 14.99 million smartphones in China last quarter, while Samsung shipped 13.22 million - thus falling to the second place. Although Apple is selling a lot if iPhones in China, it’s now included in the “others” category, seemingly not making it to top 5. Speaking of it, the top also includes Lenovo, Yulong and Huawei - all being Chinese companies.

Xiaomi recently started selling its smartphones in more markets, including India, while also launching a new flagship: the Mi4 (pictured above, currently available only in China). The company’s key to success is selling products at low prices. Even its high-end smartphones are affordable - for example, the Mi 4 costs as low as $320 in China, while offering features like a 2.5 GHz Snapdragon 801 processor, 3 GB of RAM, a 5-inch 1080p display, and a “premium” metal construction.

It will be interesting to see how much Xiaomi can still grow. Can it become one of the world’s top three smartphone makers, alongside Samsung and Apple? Right now, its rapid ascension suggests that it can. But we’ll see what happens.


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30 Comments

1. CyberFalcon

Posts: 223; Member since: Apr 17, 2014

Keep up the good work Xiaomi...

10. HansGoneInsane unregistered

Good news. It is pleasing to see that Samsung gets beaten by its own strategy. I am not worried about Samsung. They won't disappear. The company just gets trimmed to the size it deserves to be.

11. UglyFrank

Posts: 2188; Member since: Jan 23, 2014

Samsung's strategy isn't to sell all phones dirt cheap and rely on flash sales to build hype.

17. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I support both brands. Samsung bring in new type of gadgets at a fast rate. XiaoMi offer amazing value for establish ones.

30. HansGoneInsane unregistered

Really? Compare what Samsung did a couple of years ago when the iPhone was new with what the Chinese vendors do today.Samsung did the same (apart from the flash sales, but only Xiaomi does that to my best knowledge).

2. naittosan

Posts: 239; Member since: Jun 28, 2014

Way to go Xiaoping, you can still have high specs at an affordable price. We

4. mss1988

Posts: 39; Member since: Apr 19, 2012

:D it does make sense even with autocorrect ;) :D

3. naittosan

Posts: 239; Member since: Jun 28, 2014

Dam that auto correct

5. Ninetysix

Posts: 2933; Member since: Oct 08, 2012

More data collected by the goverment the better.

8. SellPhones82

Posts: 569; Member since: Dec 11, 2008

US government, or China's? Apple, Google, and the US carriers already supplied the US government with everything they need. The story last week from GSM Arena about Xiaomi has already been de-bunked so at least all your info stays in this country!

9. icyrock1

Posts: 307; Member since: Mar 25, 2013

> Implying Chinese companies dont give the government any and all data they want. Son, I think you need to open your eyes.

14. billgates

Posts: 555; Member since: May 29, 2014

You can't be that nieve to think that China and all other countries aren't doing the same.

18. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

All government does the snooping when necessary. Hell, i don't think they would even allow the selling of a mobile device that is so secure that even they could't crack it. Grow up! And welcome to the days after 911.

6. karamelakimo

Posts: 109; Member since: May 26, 2014

Soon will have a place in top 5 in world Although it's Chinese but it's great phones really with low cost, I tried one and it's a great job It will be funny if I tell you I prefer xiaomi over samsung

20. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Its no surprise that their software is more develop and streamline than Samsung Touchwiz. XiaoMi is a Android Rom developer first before becoming a hardware manufacturer. MIUI roms are very popular during HTC Android reigns. Many people root their phone to flash their phones with MIUI.

22. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Uh, no. The second they start selling phones officially in the EU, North America, or anywhere that values IP rights, they are dead meat. It won't just be Apple suing them, either, as you can bet Microsoft and others will be waiting in line to collect from Xiaomi.

23. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

We shall see. Besides they are the top brand without EU and US. US patent laws prohibit true innovation and value add which is the very nature of human evolution. China may overtake US in technological lead in the matter of years just like their jobs.

28. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

One, patent laws, regardless of how screwy they are sometimes, do not inhibit innovation, they promote it. If you can slavishly copy another company's IP, there isn't as much need to actually innovate. If you cannot just put everything other companies do on a photocopier, then you have to find other ways to do things. Two, China is a "me, too" nation, and they have added little in actual technological innovation. They aren't even close to overtaking the U.S., Germany, or any of the true seats of innovation. China 's greatest contribution to the world, in modern times, is cheap labor. You don't get to be called innovative when reverse engineering is your modus operandi. Three, China has taken jobs because of massive numbers of bodies for cheap labor, just like other countries before them, and just like the next countries will do. As labor rates rise, manufacturers will look for the next place in the developing world to exploit their cheap labor. China is only unique in the number of cheap laborers it can supply, but so can Indonesia, India, and a few other countries. Call me when most of China's homegrown products don't look like cheap rip offs of Western products.

7. nohatenofanboy

Posts: 515; Member since: Jul 15, 2014

good, competition always good

12. Furbal unregistered

Good news...Samsung needs to up their game.

13. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Perhaps SAMSUNG should start lowering their marketing budget now and slash their prices a bit. You simply cannot compete with these China phones

15. gigaraga

Posts: 1454; Member since: Mar 29, 2013

That's mostly due to the fact that Xiaomi phones are cheap therefore they are attractive (in pricing). This doesn't mean they are better smartphones (obviously because of Chinese quality....)

21. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

To know the quality you need to use one. I use to be like that writing them off till i actually use their phone. Everyone i demo the phone to are impress especially the smoothness and game performance running dead trigger, wild blood and other graphic intensive games. XiaoMi spoil market is the word they use. Now i find it hard to pay Samsung price even when they have slightly better hardware. Because Samsung software is infested with storage draining irremovable bloatware. However, thanks to the new gadget VR Gear i will still be getting their Note 4.

16. hunted

Posts: 403; Member since: Sep 21, 2011

Micromax too took over Samsung in India. I dont know why i am unable to paste the links. I read it in fonearena ok, here is a link from wikipedia http://en.wikipedia.org/wiki/Micromax_Mobile

27. derivativex

Posts: 176; Member since: Jul 15, 2014

I read only in handsets but samsung in smartphones still leads 25.3% versus 19.1

19. Andrewtst

Posts: 696; Member since: Jan 25, 2009

Samsung sales is shrinking everywhere. Good as Samsung deserve it. How could Samsung keep selling cheap material cheap look phone in higher price.

24. Cicero

Posts: 1103; Member since: Jan 22, 2014

Did you notice that the selling numbers are so equals? So that means everything can happen in gaining podium.

25. galanoth

Posts: 428; Member since: Nov 26, 2011

How come no one quoted this article?http://www.bloomberg.com/news/2014-07-16/how-china-may-make-apple-and-samsung-smartphones-a-tougher-sell.html The Chinese government is helping the local manufacturers beat Apple and Samsung.

26. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I don't think XiaoMi need any help with the asking price of Apple and Samsung. I just wish i can buy tbe mi tv a 49 inch UHD for less than $650. Check it out yourself. http://s1.mi.com/open/index.html

29. hashimta123

Posts: 12; Member since: Feb 06, 2014

Samsung's strategy is really annoying.They release too many models with high rate and low on specs ; their flagship designs are very weak nowadays.

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