Samsung's dominance in the Chinese mobile phone market was
shaken by Xiaomi. Reportedly, Samsung, the top smartphone vendor
for a significant part of the past two years, was dethroned by
Xiaomi, a Chinese handset maker, in the April to June period. Per
Canalys, a market research company, Xiaomi sold 15 million
smartphones compared with Samsung's 13.2 million during the
A detailed study revealed that Xiaomi had 14% market share with
shipments up more than threefold year over year, while Samsung
market share shrank to 12% with shipments down from 15.5 million
recorded in the year-ago period.
Notably, Xiaomi is also climbing the ranks pretty fast in the
global smartphone market. The company, by virtue of its strong
sales in China, has become the fifth largest smartphone vendor
beating LG, per Strategy Analytics' second-quarter 2014
While Samsung and Apple (
) retain the number 1 and 2 positions in the global smartphone
market with a respective 25.2% and 11.9% market share, Chinese
manufacturers have captured the next three positions. Up front is
Huawei with 6.8% market share followed by Lenovo with 5.4% and then
Xiaomi, which has jumped from nowhere to take 5.1%. It is worth
mentioning that while the top two vendors witnessed year-over-year
market share decline, all the Chinese vendors saw increases.
To be globally successful, Xiaomi will have to expand its
presence in international markets including India, Brazil and
Russia. It is already working toward this goal, with its Mi3,
receiving overwhelming response in India. The company sells its
products through e-Commerce site Flipkart in India where it is
reported to have sold 1 million phones. The company expects to
launch Redmi 1S and Redmi Note product lines in the coming
The Chinese handset maker's positive response in India further
adds to Samsung's woes as Micromax Informatics Ltd., an Indian
handset maker, replaced it as the largest mobile phone supplier in
India in second-quarter 2014, per market research and consulting
firm CounterPoint Research.
Samsung is being challenged by local handset makers offering
innovative products at competitive prices in the emerging markets
of China and India. Moreover, with Amazon's (
) entry into the smartphone market and Microsoft (
) acquiring Nokia's (
) handset business global competition has intensified for
Currently, Apple, Microsoft and Nokia have a Zacks Rank #3
(Hold), while Amazon has a Zacks Rank #4 (Sell).
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