For the first time since 2021, Xiaomi surpassed Apple in terms of smartphone sales in August, becoming the second manufacturer in the world. This happened against the backdrop of stable product sales volumes and at the same time a seasonal August decline in sales from Apple. Xiaomi will post one of the fastest growth rates among smartphone brands in 2024, fueling a global market recovery, according to Counterpoint research.
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Xiaomi is reported to have outperformed the market in August, offsetting seasonal sales declines in its key markets with growth driven by promotions in Latin America. After supply issues in 2022, Xiaomi, like the rest of the smartphone industry, faces a challenging macroeconomic and geopolitical environment in 2023. However, after a weak 2022, Xiaomi successfully changed its sales strategy, resulting in significant sales growth over the past year.
«This year, Xiaomi has adopted a more flexible product strategy, focusing on creating a specific flagship model in each price segment, rather than releasing multiple devices in the same segment, says Tarun Pathak, research director at Xiaomi. “In addition, the company has intensified its sales and marketing efforts, continuing its expansion into new markets and strengthening its position in existing ones.” It is worth noting that while entry-level and mid-range devices continue to post strong sales numbers, the company has also made inroads in the premium segment with its foldable devices as well as its Ultra series devices.
Overall, most of Xiaomi’s key markets have shown recovery over the past few quarters, which has played a major role in increasing demand for low-cost models, especially in the sub-$200 price range, such as the Redmi 13 and Note 13. These 5G devices have helped Xiaomi strengthen its position across all key markets, including India, Latin America, Southeast Asia, the Middle East, and Africa.
While Xiaomi’s rise to second place in August was largely due to its aggressive growth in recent quarters, Apple’s seasonal decline in sales also played a role. Since the new generation of iPhone is usually released in September, August is typically Apple’s weakest month of the year. However, the launch of the iPhone 16 will likely allow the company to regain its position in the coming months.
As devices become more similar to each other in both price and capabilities, competition between leading brands is reaching unprecedented levels. New form factors such as foldable devices and artificial intelligence capabilities are helping brands take things to the next level. However, the device ecosystem, product design and marketing strategy remain as important components of the business as ever, as demonstrated by Xiaomi’s recent success.