Xiaomi, a well-known Chinese smartphone/eco-product maker, is reaching new heights and is now the fourth largest smartphone vendor in the world. An industry report suggests that the company has performed exceptionally well by boosting its global sales while sticking to its low-cost policy.
The company recently filed for an initial public offering (IPO) in Hong Kong and is looking to raise $100 billion in capital – this will be the largest IPO recorded since 2014. Xiaomi reported a major decline in sales volume back in 2017 when it attempted to globalize its operation.
Make Way, Coming Through!
However, the company made a difficult comeback by sustaining its presence in emerging markets such as India and Pakistan. It has now expanded its presence in the European market, according to Strategy Analytics, and has left Vivo behind in the race to join the top 5 list of the biggest smartphone brands in the world.
These top 5 vendors – including Samsung, Apple, Huawei, Xiaomi, and Oppo – account for 75% global smartphone sales. Xiaomi’s strategy has always been to spend less on retail and advertisement to reduce costs and sell their devices at “honest prices”.
The company also capped its profit margin per unit to 5 % and improved its supply management by introducing physical retail stores and by partnering with notable e-commerce stores. Strategy Analytics’ press release reads,
Xiaomi’s growth soared 125 percent annually in the quarter, outperforming all its major rivals. Xiaomi is expanding like wildfire across Asia, particularly in India. Oppo slipped to fifth place, capturing 7 percent global smartphone market share in Q1 2018, tumbling from 8 percent a year ago. Oppo has been hit hard by Xiaomi’s rapid retail expansion and Huawei’s much-improved Android device portfolio.
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Overall Market Declined by 2%
Samsung is more popular in western countries, especially North America, but faces intense competition against budget brands such as Xiaomi and Huawei in India, Pakistan, and China.
Read the full Strategy Analytics report here.