Connect with us

Phone News

Xiaomi – The Apple of China in Trouble after other Chinese Phone Brands Eat their Market Share

Published

on

The Chinese Smartphone manufacturer Xiaomi has grown exponentially over the past couple of years. By the end of 2014, the company was officially crowned as the world’s most valuable technology startup. Well, for a company established in 2010, having a private valuation of more than $46 billion is not a joke. The company is known for it’s cheap/affordable range of smartphones which surprisingly have amazing build quality too. It got a tremendous response in the Indian market as well.

But it is reported that the company is not doing very good lately, in terms of sales. According to a report, the company sales figures dropped by 38 percent in the second quarter of 2016 in China. Although the company is known to be doing well with their smartphones, the sales figures were never so impressive. In the year 2015, Xiaomi set out an ambitious target of 100 million smartphones. But the situation was not really in the company’s favour. It ended up selling only 70 million.

With that, it pulled in 78 billion yuan for the year, which was only up by 5 percent on 74.3 billion yuan in 2014. This was well short of the 100 billion target figure. This was not bad by any means but still far from good against the competition. Also note that the company also sells products other than smartphones like water purifiers, hoverboards, etc. But smartphones still makes most of the share for the company with only up to 5 percent from other products.

Now let’s talk about the current scenario. To keep it short, things are not looking good for the company as of now. Xiaomi sold an estimated 10.5 million smartphones in China in Q2 of 2016. This is down from the 17.1 million they sold last year, which is a drop of about 38.4 percent. The reason for the same appears to be a fierce competition from the Chinese rivals like Huawei, Oppo and Vivo, etc. Looking at the sales figures from these manufacturers, they have shown an immense growth in terms of market share.

market share Q2 2016

Huawei which is doing good with their existing line of smartphones saw a 15.2 percent year-over-year growth. But the winner here is definitely the OPPO and Vivo with a year-over-year increase of about 124.1 percent and 74.7 percent respectively. This clearly shows that the company is lagging way behind the others in the race for the top position. Things were going well with the launch of the Mi4 and then they launched the Mi4i in India and launched the Mi4c in China. After that, the focus shifted to the budget smartphones. Things again started falling apart until they launched the Mi 5, with which things started to become comparatively stable.

Recommended: Apple shipments in India drop by 33% with 97% Smartphones running on Android

Okay, so enough of all the numbers right? Let’s see where they have gone wrong. Numerous reports are pointing to the failure of marketing as the cause. We all know that the company has spent very little as compared to others on marketing. They believed the user’s hype and word of mouth certainly did the job for them. This might have worked for them initially, but as the company matured as a brand, this is no longer of any use here. Talking about the competitors here, they are spending heavily on marketing and building a brand reputation.

Talking about the market presence here, the company tagline “Devices from the Future” was mocked by many, a couple of months back. We discovered that the company took it to a whole new level and started selling devices made in future. It all began when the company brought back their Mi 5 device from a future manufacturing date. Soon after that, Xiaomi became the centre of attention for all jokes regarding the time travel. Is this the type of media presence they are looking at? Definitely not.

With that being said, the company should start focusing more on the marketing and get their strategies right and then maybe we can see them touching the heights, which they set out to do initially. But as of now, the Apple of China is in some serious trouble.

Continue Reading
Comments

Recommended Video

Connect on Facebook

Top 5

Top 53 months ago

Top Features of the Vivo V7 Plus Smartphone

Vivo has finally unveiled the all-new selfie-centric smartphone dubbed Vivo V7 Plus in India. Though it is the successor to V5...

Top 55 months ago

Top 5 Best Performing Smartphones Under Rs 30,000 You Can Buy in August 2017

2017 has been an amazing year for smartphones. We have seen some really great smartphones launching this year so far...

Top 57 months ago

Top 5 Features of the Panasonic Eluga Ray Smartphone

Panasonic launched the new Eluga Ray smartphone here in India a couple of weeks back. This is yet another offering...

Top 51 year ago

Top 3 Smartphones from UMi you should take a look at

UMi is a Chinese smartphone manufacturing company that has launched a couple of smartphones previously. The smartphone manufactured by the...

Top 51 year ago

Fix Top 5 Pokemon Go Problems like Server Issues, GPS error, Battery Drain

Pokémon Go by Niantic began rolling out to players across the globe, and like all any other new game release,...

Top 51 year ago

Top 5 Features of Samsung Galaxy On5 Pro & On7 Pro Smartphones

The South Korean smartphone manufacturer Samsung, has been doing pretty good job with the budget smartphone lineup. They have introduced...

iPhone 6s - 1750mAh Battery iPhone 6s - 1750mAh Battery
Top 51 year ago

5 Tips to Make your Smartphone Battery Last till the End of the Day

Smartphones are the most useful piece of gadget that we own, which helps us get our jobs done easily. We...

Samsung Galaxy S6 Edge Plus - Top Features Samsung Galaxy S6 Edge Plus - Top Features
Top 52 years ago

5 Most Important Features of Samsung Galaxy S6 Edge+

Samsung fans must be in awe this year, as they’ve got to see two new flagship devices within the span...

Top 5 Missing Features on Samsung Galaxy Note 5 Top 5 Missing Features on Samsung Galaxy Note 5
Top 52 years ago

Top 5 Missing Features on Samsung Galaxy Note 5

Samsung has launched the much-anticipated smartphone ‘Galaxy Note 5‘ with not much improvements over specifications, but you can find the...

Samsung Glaxat Note 5 Featured image Samsung Glaxat Note 5 Featured image
Top 52 years ago

Top 5 – Most Important features of Samsung Galaxy Note 5

Samsung Galaxy Note 5, the biggest announcement by Samsung Mobiles in New York. The features of the device are pretty...


Trending