Xiaomi beats Samsung to lead in Chinese phone market: Canalys

Xiaomi has overtaken Samsung to become the biggest smartphone maker in China. Market research firm Canalys said Tuesday that Xiaomi sold 15 million smartphones in China during the second quarter, more than a three-fold surge from a year earlier.   Canalys said Samsung’s China smartphone sales decreased to 13.2 million units from 15.5 million a year earlier. Xiaomi is little known in Europe or in North America as it sells nearly all of its smartphones in mainland China.   Canalys said China was the world’s largest smartphone market during the period, with nearly four in every 10 smartphones sold there. Samsung and Apple Inc were the only non-Chinese vendors in the top 10.   “This is a phenomenal achievement for Xiaomi,” said Shanghai-based Canalys Research Analyst Jingwen Wang, adding “Undoubtedly this was helped by an anticipated, temporarily under-strength Samsung performance during the quarter. But that is only half the story - Xiaomi has also executed on its strategy to grow volume shipments. It has delivered compelling products at aggressive price points, focused chiefly on its locally relevant MIUI software features and services, backed by effectively targeted marketing.”   “In particular, its affordable RedMi range is booming and has been the driver for growth, despite attracting less global media attention than its flagship Mi products. But it does now need to deliver LTE products in China to address growing demand for 4G services if it is to retain its momentum,” said Wang.   97 percent of Xiaomi’s Q2 shipments were into mainland China. It is now looking to expand into other markets, with Indonesia, Mexico, Russia, Thailand and Turkey in its sights for the second half of the year.   “Its aggressive pricing model will certainly resonate beyond China, but the challenge it faces in scaling its model for success on a global stage should not be underestimated,” said Singapore-based Analyst Jessica Kwee.   With inputs from Associated Press