China’s Xiaomi has surpassed Apple for the primary time to turn into the world’s third-largest smartphone maker by shipments within the July-September quarter, edging the US tech firm out of the worldwide high three for the primary time in 10 years, three key market information suppliers stated.
The world’s high three smartphone firms are actually all from Asia, in response to Canalys, IDC and Counterpoint Analysis. The most recent statistics come as Apple on Thursday posted a 29 per cent year-on-year drop in revenue within the Chinese language marketplace for the three months to September.
Xiaomi had a 46 per cent soar in shipments from a yr in the past for the three months to September, delivery 46.2m handsets, Counterpoint stated. Apple logged a 7 per cent drop in shipments yr over yr, promoting 41.7m iPhones within the July-September quarter.
Canalys stated Apple had a 1 per cent decline in shipments, whereas Xiaomi’s surged 45 per cent yr over yr for a similar interval. IDC stated Apple’s shipments dropped greater than 10 per cent whereas Xiaomi’s grew 42 per cent.
Xiaomi’s milestone got here as the worldwide smartphone business recorded a 4 per cent decline within the quarter, as many shoppers held off from shopping for a handset till the launch of the primary 5G iPhone, which was delayed to mid-October. Xiaomi additionally benefited from the headwinds dealing with its greatest home rival Huawei Applied sciences, which is shedding floor within the abroad market because of the US crackdown on the corporate.
Xiaomi, based in 2010 by Lei Jun, was nicknamed “China’s Apple” early in its historical past, however later promoted itself as a data-centric web firm, introducing a variety of linked units, from sensible TVs and wi-fi earbuds to sensible audio system and sensible lightbulbs. The Beijing-based smartphone maker has since made a reputation for itself by providing merchandise with premium specs at reasonably priced costs.
“Xiaomi moved aggressively to grab [market share] from Huawei,” stated Mo Jia, analyst at Canalys. “There was symmetry in Q3, as Xiaomi added 14.5m items and Huawei misplaced 15.1m. In Europe, a key battleground, Huawei’s shipments fell 25 per cent, whereas Xiaomi’s grew 88 per cent . . . Xiaomi took a danger setting excessive manufacturing targets, however this transfer paid off when it was capable of fill channels in Q3 with high-volume funds units, such because the Redmi 9 collection.”
However the analyst stated Xiaomi nonetheless confronted competitors from compatriots Oppo and Vivo, which have grown to cowl a variety of value bands in south-east Asia. They’re now pushing into Europe, too, the place they’re positioning themselves extra within the premium value vary, doubtlessly trapping Xiaomi on the low finish of the market.
This text is from Nikkei Asia, a worldwide publication with a uniquely Asian perspective on politics, the economic system, enterprise and worldwide affairs. Our personal correspondents and outdoors commentators from around the globe share their views on Asia, whereas our Asia300 part offers in-depth protection of 300 of the most important and fastest-growing listed firms from 11 economies exterior Japan.
Samsung reclaimed its place because the world’s high smartphone maker within the July-September quarter, information from all three suppliers confirmed, after the South Korean firm was briefly overtaken by Huawei within the previous quarter. Huawei got here second within the September quarter, with a market share of about 14 per cent to fifteen per cent, although in response to IDC its smartphone shipments fell 22 per cent.
Huawei’s rating might proceed to fall, in response to many market watchers, despite the fact that there are some indicators that Washington is easing its restrictions by granting licences to key show and sensor suppliers, together with Samsung Display and Sony.
Xiaomi’s overtaking of Apple, in the meantime, may very well be solely non permanent, because the long-awaited launch of 5G iPhones within the last quarter of the yr might assist the Cupertino-based firm bounce again in shipments.
The general smartphone business outlook remains to be turbulent, as a brand new wave of Covid-19 is hitting Europe and governments are grappling with whether or not to impose extra widescale lockdowns that would additional harm the economic system.
A version of this article was first printed by Nikkei Asia on October 30 2020. ©2020 Nikkei Inc. All rights reserved