Over the last couple of years, Xiaomi has really consolidated its position as one of the biggest smartphone makers in the world. However, 2021 seems to be going the Chinese tech giant’s way like no other year perhaps. As the company announced its quarterly results, certain numbers stand out which should give competition more than just food for thought.
Selling more premium phones than before
For a while, Xiaomi was dismissed as a brand that can’t make premium phones. It was true also as in the past its experiments with expensive phones didn’t bear any results. Not anymore though. Phones like Mi 11 Ultra and the recent Mi Mix 4 seems to strike a chord as the company shipped 12 million premium phones in Q2 2021. In this quarter, Xiaomi shipped about 52.9 million handsets, so budget phones still remain its bread and butter.
Earning huge profits
According to the numbers posted by Xiaomi, its annual profits is up 84.4% on a year-to-year basis. The quarterly revenue of Xiaomi stood at $13.56 billion — a 64% increase from last year. The net profit was around $1.28 billion, showing 87% growth compared to the same quarter last year.
Why rivals should be worried
A recent report by Canalys ranked Xiaomi as the number two player — behind Samsung — in the world for the first time. Xiaomi’s market share was 16.7% in the second quarter of 2021. “Xiaomi is growing its overseas business rapidly,” said Canalys Research Manager Ben Stanton. “For example, its shipments increased more than 300% in Latin America, 150% Africa and 50% in Western Europe. It’s these rising numbers that should worry rivals as from a China-only or India-only brand, Xiaomi is growing fast in many parts of the world. In Europe, it has dethroned Samsung to become the top player. Worldwide, the gap between Samsung and Xiaomi remains very little.
Xiaomi continues to be number one in India
In India, Xiaomi is the market leader with about 28% share, according to Counterpoint Research. This is mainly driven by budget phones like the Redmi 9 series and Redmi Note 10 series. Xiaomi captured the top four positions in the top 5 models list with the Redmi 9A, Redmi 9 Power, Redmi Note 10 and Redmi 9, out of which the top three models clocked more than a million shipments, according to Counterpoint. The Redmi 9A has been the best-selling model for the last three quarters.
In the premium segment in India, Xiaomi shipped its highest-ever volumes in Q2 2021 and captured 7% of the segment. It slowly taking big strides in the premium market as well. With its position rather secure in the budget segment, rivals should worry about how Xiaomi can pose a big threat to them.