For the first time in 10 years, Xiaomi has emerged world’s third-largest smartphone maker by shipments in the third quarter of 2020, overtaking American tech giant, Apple, according to Canalys, IDC and Counterpoint Research, three independent key market data providers that track the data.
All three market data providers reported an increase in sales of Xiaomi for the period.
While the Chinese multinational electronics company shipped a total of 46.2 million handsets in Q3 ’20, up by 46 percent from what was generated a year earlier, according to data from Counterpoint Research; Apple, saw a 7 percent drop in shipments, selling 41.7 million iPhones in the period under review.
Canalys said Apple saw a 1% decline in shipments while Xiaomi surged 45 percent year-over-year for the same period. IDC said Apple’s shipments dropped more than 10 percent while Xiaomi’s grew 42 percent.
With Xiaomi surpassing Apple to cling to the number three spot, Asia now dominates the top three spots of World’s largest smartphone companies.
Samsung reclaimed its position as the world’s top smartphone maker in the July-September period, data from all three providers showed, after the South Korean company was briefly overtaken by Huawei in the preceding quarter. Huawei came second in the September quarter, with a market share of around 14-15 percent, though according to IDC its smartphone shipments fell 22 percent.
READ ALSO: Teach For Nigeria drives education-focused social change projects with new Incubation Hub
Huawei’s ranking could continue to fall, according to many market watchers, even though there are some signs that Washington is easing its restrictions by granting licenses to key display and sensor providers, including Samsung Display and Sony.
Xiaomi’s milestone comes despite a 4 percent decline in the global smartphone industry caused by the Coronavirus-induced slowdown in demand, and a wait and see approach by many consumers until the launch of the first-ever 5G iPhone, which was delayed till mid-October.
Xiaomi also benefited from the headwinds facing its biggest domestic rival Huawei Technologies, which is losing ground in the overseas market due to the U.S. crackdown on the company.
Founded in 2010 by Lei Jun, Xiaomi was nicknamed “China’s Apple” early in its history but later promoted itself as a data-centric internet company, introducing a wide range of connected devices, from smart TVs and wireless earbuds to smart speakers and smart light bulbs. The Beijing-based smartphone maker has since made a name for itself by offering products with premium-specifications at affordable prices.
“Xiaomi moved aggressively to seize [market share] from Huawei,” said Canalys analyst Mo Jia. “There was symmetry in Q3, as Xiaomi added 14.5 million units and Huawei lost 15.1 million. In Europe, a key battleground, Huawei’s shipments fell 25%, while Xiaomi’s grew 88% . . . Xiaomi took a risk setting high production targets, but this move paid off when it was able to fill channels in Q3 with high-volume budget devices, such as the Redmi 9 series.”
Despite its stellar performance, analysts say Xiaomi still faces competition from compatriots Oppo and Vivo, which have grown to cover a wide range of price bands in Southeast Asia. They are now pushing into Europe, too, where they are positioning themselves more in the premium price range, potentially trapping Xiaomi at the low end of the market.
Xiaomi’s overtaking of Apple, meanwhile, could be only temporary, as the long-awaited launch of 5G iPhones in the final quarter of the year could help the Cupertino-based tech giant bounce back in shipments.
The overall smartphone industry outlook is still turbulent, as a new wave of COVID-19 is hitting Europe and governments are grappling with whether to impose more wide-scale lockdowns that could further damage the economy.
