Xiaomi overtakes Samsung as the top manufacturer in China

Xiaomi overtakes Samsung as the top manufacturer in ChinaWhat was a relatively unknown company around a year back, Xiaomi has just overtaken the global giant, Samsung in the second quarter of 2014 in China. This report comes from a research company called Canalys who said that Xiaomi shipped 15 million smartphones this quarter which made it the top smartphone manufacturer in its home country.

This tremendous growth was due to the effectively strategy used by the company last year. Moreover, Samsung too suffered some setbacks and for the first time, the number of Samsung phone bought in China dropped over 15%.

Xiaomi managed to ship 15 million smartphones last quarter in China as compared to 4.4 million in the same quarter last year. This was an impressive growth of 240%. On the other hand, Samsung shipped just 13.2 million smartphones that quarter as compared to 15.5 million, in the same period in 2013. So, the impressive growth of Xiaomi along with a weak quarter from Samsung helped it to overtake the South Korean giant.

“Undoubtedly, this was helped by an anticipated, temporarily under-strength Samsung performance during the quarter,” Canalys research analyst Jingwen Wang wrote in the report. “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 backed by effectively targeted marketing.

“But it does now need to deliver LTE products in China to address growing demand for 4G services if it is to retain its momentum.”

What’s even surprising is the fact that Xiaomi is currently the fifth largest smartphone manufacturer in the world. The company managed to achieve this feat just by operating in its home country as well as in some neighboring ones.

But Xiaomi is looking to expand to other countries too. The company has already launched its products in neighboring countries like India and plans to expand its operations to countries like Mexico, Thailand, Indonesia, Russia and Turkey.

Aggressive pricing and effective marketing has been the key to the company’s success and as it expands into more and more countries, its slowly eating away the market share of well-known manufacturers like Samsung and Apple.

Another important part of the strategy of the company is to sell its products for around a year and a half after it’s launched. So the company reaps benefits from the hard work put into a product for a long time, which improves profitability.

Stay tuned to the website for more information on this emerging new Chinese manufacturer.

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About the author

Joel is an experienced blogger who covers all kinds of news relating to tech. He is a huge fan of Android and can be seen playing around with his phone in his spare time.