Xiaomi shift position Apple with sales cell phone smart (smartphone) the second largest in the world in the second quarter. Canalys assesses that the Chinese company relies on four strategies to boost shipments.
Canalys noted that Xiaomi’s mobile phone shipments increased 83% year-on-year (year on year/yoy) in the second quarter. Meanwhile, Apple’s smartphone sales only grew 1%.
As a result, Xiaomi’s market share reached 17% globally, surpassing Apple’s 14%. The first position is still occupied by Samsung with 19%.
Canalys reveals at least four Xiaomi strategies to boost sales. First, accelerate expansion.
“Xiaomi is growing overseas businesses rapidly,” said Canalys research manager Ben Stanton CNBC International, last weekend (16/7).
In the United States (US) for example, Xiaomi phone shipments rose 300% yoy. In Western Europe increased by 50%.
Second, boost production and launch many new products. Asia Nikkei Review reported, Xiaomi ordered components and parts up to 240 million units from suppliers.
This amount far exceeds last year’s order. Therefore, Xiaomi’s mobile phone shipments are predicted to exceed the average annual rate of iPhone shipments.
To suppliers, Xiaomi said that they had higher internal targets for this year. The company targets to be able to distribute smartphone up to 300 million units.
Third, maintain a low-cost cell phone strategy. Canalys noted that the average selling price of Xiaomi phones is 40% cheaper than Samsung and 75% cheaper than Apple.
Head Global Times, Xiaomi founder Lei Jun said that the company’s success this year underscores the strategic advantage of the price side.
https://www.youtube.com/watch?v=7kJNzLs59zA
“We aim to maintain a technology-oriented and cost-effective mindset while still making the best products on the market,” Lei Jun said Global Times, last weekend (16/7).
Xiaomi also often launches mobile phone products with high specifications to match Samsung and Apple, but at low prices. For a high-end flagship phone, the Mi 11 Ultra, for example, it costs US $ 928 or Rp. 13.4 million.
While GSM Arena reported, Samsung’s high-end phone, the S21 Ultra, was sold for around US $ 1,199 or Rp. 17.3 million. Then the iPhone 12 Pro Max is priced at US $ 1,099 or Rp 15.9 million.
Fourth, Xiaomi overcomes the problem of supply shortages of components, especially chips (chipset). One of them, increasing investment in chip development to reduce dependence on the US technology ecosystem.
Xiaomi has also been investing heavily in chip development since 2019. Asia Nikkei Review reported, Xiaomi invested in six semiconductor companies in China at the time. The number jumps to 22 companies in 2020, as tensions between the US and China escalate.
In March this year, Xiaomi significantly increased its stake in 34 chip companies and 25 hardware manufacturers (hardware) in Panda Land.
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