After experiencing annual revenue growth of around 83% in the second quarter of 2021, Xiaomi has achieved a 17% market share for smartphones. A feat that allows the Chinese manufacturer to overtake Apple to take second place on its own in the global smartphone market, as reported by the research firm Canalys. The Chinese firm – whose first smartphone was marketed almost 10 years ago – is behind Samsung, which remains clinging to first place in the ranking with 19% market share.
In a letter to his teams, Xiaomi founder and CEO Lei Jun described his company’s performance as a “major victory”, after years of lean cows. “In the third quarter of 2014, we took third place in the world for the first time in our history. We unfortunately encountered many difficulties thereafter, and left the Top 5 ”, recalls the manager.
The rest of the story, however, has all of the success story. “Since 2016, we have conducted a comprehensive review of our business and, after five years of self-improvement, we have significantly improved the capabilities of our products, and we have led the way in the high-end market segment and have been there. strengthened our position, ”noted the manager, who does not intend to stop there. The Chinese manufacturer therefore plans to strengthen its research teams by recruiting more than 5,000 engineers this year.
Xiaomi bets on transparency
While Xiaomi is today a very serious candidate for the title of the largest manufacturer of smartphones in the world, the manufacturer intends to capitalize on its expertise in this sector to develop on the front of connected objects. “Our AIoT business revolves around our smartphones and builds an ecosystem of intelligent life. It makes Xiaomi the real leader in intelligent life for the future, ”explains the boss of the Chinese firm, which intends to invest 1.7 billion euros in research and development in 2021, against 1.3 billion in 2020.
The manufacturer also intends to bet on the international market, which now accounts for nearly half of its income. To do this, the management of Xiaomi wants to show its white paws and reassure Western consumers, concerned about the protection of their data. After being placed – then removed – from the American “black list”, the manufacturer claims to obtain certifications in terms of security and confidentiality, which guarantee that “all data leaving Europe fully complies with the contractual conditions EU standard and GDPR ”.
Note that with the exception of Huawei – still facing US sanctions – other Chinese manufacturers are doing well. This is particularly the case of Oppo and Vivo, which each hold 10% of the global smartphone market share, after having recorded respective growth rates of around 28% and 27%.