Xiaomi: The ‘Apple of China’ Is a Real Challenger to Apple in China

Xiaomi: The ‘Apple of China’ Is a Real Challenger to Apple in China

Xiaomi Could Overtake the Apple in the World’s Largest Mobile Market

The China citizens certainly displays strong addiction and inclination to smartphones. This inclination and addiction have transformed the country as one of the largest and broadest mobile markets in just a snap. Xiaomi, also referred to as the “Apple of China,” is now one of the outstanding international smartphone manufacturers. The company has risen and grown fast. The company’s enormous growth and stability are things that they owed from their affordable yet high-end mobile devices.

However, tablets have not really taken off yet in China. Apple still leads the China market with a market share of 28% in last year’s second quarter period. This record was achieved by selling about 1.48 million exclusive Apple units based on the research conducted by IDC firm. This represents about 10% of the entire sale of Apple iPad during the given period and this is based on the compiled data of Bloomberg.

In the mid of May 2014, Xiaomi has finally revealed its very first tablet in Beijing. And it is said to be entering the market very timely. Jenny Lee, an investor in Xiaomi and managing director in GGV Capital that is based in Shanghai, states that China nations are now beginning to adopt tablets more than personal computers especially in offices. To conquer the market share, Xiaomi will need to chase after Samsung and Apple, which are already the market leaders of tablets in China and worldwide. This is certainly a race that Xiaomi is acquainted and ready with.

Xiaomi Eating Up Apple's Market Share

Source: http://www.bloomberg.com/

Xiaomi Uprising and Surpassing Local Brands for Smartphone Market Share in China

Xiaomi, the start-up based on Beijing has established itself as a real challenger to Apple that is also nestled in China over the period of four years ever since this was founded. At the end of Year 2013, these two companies rolled for the fifth place in the country on which Apple has been considering as important markets for its business.

On another note, Samsung got the lead position that is locked with its smartphone portfolios ranging from the budget price up to premium, which is their Samsung Galaxy S5. There is no shortage of  impersonal China brands that are also struggling for local-budget consumers. This pie of market share is headed by Lenovo, Coolpad and Huawei. As we can see from the graph below, Xiaomi is rising up from behind, surpassing all these three brands.

Xiaomi Rising in China

 Source: http://www.bloomberg.com/

Conclusion

With the global ambitions of Xiaomi, its enormous local success has not translated into other particular markets yet. With about 97% of Xiaomi’s smartphones have been successful sold in China; Hugo Barra, Xiaomi’s Vice President who is responsible for the international expansion unveiled that the newest Mi Pad tablets are going to be available all over China in June. This will eventually be made available in other international markets such as Southeast Asia, Latin America and India. Hugo Barra also revealed that the market of United States is highly competitive so as of now, this is not included in the expansion plan list of the company for the year.

This is just fine simply because Xiaomi has recently achieved the top 10 for smartphone brands established in China alone. The company has successfully knocked Blackberry down from the 10th place in March this year. It is highly expected that the Xiaomi Mi Pad which is following similar sets of principles making Mi Smartphone is definitely a sure hit. If Xiaomi Mi Pad tablet can successfully repeat its success in smartphone in China, then without a doubt, this phenomenon will soon be called as “The Xiaomi of America.”

Smartphones top 10 ranking in China

 Source: Counterpoint Technology Market Research 

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