Smartphone: Apple overtaken by Mi in China

by bold-lichterman

Mid (formerly Xiaomi) has just robbed Apple of its second place in China in the smartphone market. The Chinese manufacturer achieves a real breakthrough with 21% of the market, overtaking the apple firm (16%) according to a study Kantar World Panel. The impact on absolute iPhone sales remains limited, however, since only 5% of new Mi customers come from Apple. The two companies are in fact positioned in quite different segments.

Conversely, with such a trend, the Chinese manufacturer is catching up with the South Korean giant Samsung, which still remains dominant in the country with 23% of market share. Especially since Xiaomi’s sales are exerted more to its detriment than to other players: 17% of new Xiaomi consumers previously owned a Samsung model, while 21% had a terminal from one of the five other leading brands (Huawei, ZTE, Lenovo, Coolpad, OPPO). It is the same with ex-Nokia consumers who represent 18% of new Mi followers.

An international ambition

According to the firm, this performance is explained by Mii’s ability to appeal to consumers who already owned a smartphone – they represent 70% of consumers who bought a handset from the brand in the first five months of the year – and those who already had a Xiaomi phone (20%). In other words, the company has succeeded in creating brand value and user experience that are starting to pay off according to Kantar.

Founded in 2010 by Lei Jun in Singapore, Xiaomi was recently rebranded as Mi, a new name expected to expand the business internationally. In April 2014, it announced its desire to expand to 10 new countries (India, Russia and Brazil, Malaysia, Thailand, Vietnam, Turkey, Mexico and the Philippines).