Our new Marketplace Crash Course is here to help. Sign-up for free, learn at your own pace.
When it comes to the global smartphone market, everybody knows about Samsung and Apple. But do you know who number three is?
Xiaomi, an upstart Chinese company you’ve probably never heard of, has taken the smartphone bronze, based on sales this summer. It edged past players like LG on the way.
“So far, Samsung still remains number one. Number two is Apple. But now Xiaomi is number three,” says Linda Sui with the research and consulting firm Strategy Analytics.
Analysts say this growth is incredible, given that Xiaomi only sold its first phone three years ago. The Chinese company has passed Samsung and Apple in China, and sold between 17 and 18 million phones in Asia last quarter.
“Because it’s only within Asia, that’s a huge number,” says Ramon Llamas with IDC.
He adds that these phones are “feature-packed, easy to use and rather inexpensive. And that really appeals to millions and millions of users. And here’s the scary thing: It’s just getting started.”
Xiaomi is expanding in India, with an eye on Brazil, Mexico and more countries in Southeast Asia. But not the U.S. — yet.
“You cannot jump from the Chinese market straight to the U.S. markets,” says Boris Metodiev, a research manager with 451 Research.
Customers in emerging markets prioritize cost and value, he says, while customers in the U.S. tend to stay loyal to brands like Apple.
So Xiaomi has to keep growing.
“Conquering step by step the developing markets,” Metodiev says. “And once their name becomes more and more popular, then they will eventually move to the U.S. markets, to the West European markets, and so on and so forth.”
Even if Xiaomi continues to expand, it might not hold onto the number three spot. That’s because its competition just grew. Lenovo announced today it has completed its acquisition of Motorola Mobility.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.