Xiaomi Surpasses Apple In Global Smartphone Sales For August 2024
Xiaomi’s ascent has been one of the big stories of 2024 after its strategic overall in the last year.
Xiaomi has overtaken Apple to claim the second spot in global smartphone sales for August 2024, marking the first time since August 2021 that the company has reached this milestone, according to data from Counterpoint Research. Despite the seasonal sales decline experienced by many brands, Xiaomi’s recent growth can be attributed to its revised product strategy and aggressive marketing efforts, particularly in emerging markets.
Strategic Overhaul Amid Industry Challenges
Following supply chain disruptions and a challenging macroeconomic environment in 2022, Xiaomi, like much of the smartphone industry, faced significant obstacles. The brand, however, responded with a strategic shift, revamping its product offerings and sales channels throughout 2023. This shift has paid off, with Xiaomi recording year-on-year growth nearly every month over the past year.
Commenting on the company’s new approach, Tarun Pathak, Research Director at Counterpoint Research, said, “Xiaomi has adopted a leaner product strategy this year, focusing its energies on creating one hero model per price band, rather than launching multiple devices in a single segment. This focus has allowed Xiaomi to streamline its portfolio, while also revitalising its sales and marketing efforts. The company continues to expand into new markets while consolidating its position in existing ones.” Pathak also noted that Xiaomi’s entry-to-mid-tier devices continue to perform well, while the brand is making notable progress in the premium segment with foldable and ‘ultra’ devices.
Growth Driven by Promotions and Market Recovery
Xiaomi’s robust performance in August 2024 was bolstered by promotions in Latin America, helping offset seasonal declines in its core markets. Economic recovery in several of Xiaomi’s key markets over the past few quarters has further driven demand, particularly in the sub-$200 category. The company’s success in this price band has been amplified by the popularity of its 5G-capable Redmi 13 and Note 13 series, which have performed particularly well in regions like India, Southeast Asia, Latin America, and the Middle East and Africa.
The brand’s ability to respond to regional demand with competitively priced devices has allowed it to expand its market share significantly. Latin America, in particular, has emerged as a growth engine for Xiaomi, with the company outpacing the broader market in terms of sales.
Apple’s Seasonal Decline and Competitive Landscape
While Xiaomi’s ascent can be attributed to its aggressive market strategy, Apple’s seasonal sales slump in August also played a part in this shift. Historically, Apple experiences a dip in sales during this period, as consumers hold off purchases in anticipation of the next iPhone launch in September. The upcoming iPhone 16 series is expected to rejuvenate Apple’s sales, potentially allowing the company to reclaim the second spot or even challenge Samsung for the number one position.
However, Xiaomi’s rise is reflective of broader trends in the global smartphone market, where competition is increasingly fierce. As brands become more comparable in terms of technology and price, differentiation is being driven by factors such as product design, ecosystem development, and marketing strategy. Xiaomi’s recent success highlights the brand’s ability to innovate in response to these market dynamics, positioning it as a formidable player in the evolving smartphone landscape.
Xiaomi’s Strong Performance in 2024
The past year has been a standout one for Xiaomi, with the company enjoying consistent growth across multiple regions. In Q2 2024, Xiaomi’s Redmi 13C was among the best-selling smartphones globally, a list traditionally dominated by Samsung and Apple. Furthermore, Xiaomi maintained its leadership in the Indian market, recording a 23 per cent increase in shipments during the same period.
