Xiaomi surges to number two smartphone spot globally, outpacing Apple in August

Xiaomi has reached a significant milestone, capturing the second position in global smartphone sell-through volumes for August 2024, according to preliminary data from Counterpoint Research. This marks the company's return to the #2 spot for the first time since August 2021, driven by its strategic market expansion and a seasonal decline in Apple's sales.

Strategic Shifts and Market Recovery

Xiaomi has been one of the fastest-growing smartphone brands in 2024, contributing significantly to the global market's recovery after a challenging period. The company's strategic adjustments in product, sales, and channel strategies have paid off, resulting in strong year-on-year growth in recent months.

"Xiaomi has adopted a leaner product strategy this year, focusing its energies to create one hero model per price band, rather than launching multiple devices in one segment," said Tarun Pathak, Research Director at Counterpoint Research. "Besides, it has also re-energised its sales and marketing focus while continuing expansion into newer markets and consolidating its position in existing markets. While entry-to-mid-tier devices continue to show strong performance for Xiaomi, it has also made inroads into the premium segment with foldable and 'ultra' devices.”

Strong Performance in Key Markets

Xiaomi's success has been driven by its strong performance in key markets, including India, Latin America, Southeast Asia, and the Middle East and Africa. The company's price-competitive Redmi 13 and Note 13 series, featuring 5G capabilities, have been particularly popular, driving growth across these regions.

Apple's Seasonal Decline

While Xiaomi's growth has been impressive, Apple's traditional seasonal decline in August also contributed to the shift in rankings. August is typically a weaker month for Apple as consumers anticipate the release of the new iPhone generation in September. The recent launch of the iPhone 16 series is expected to boost Apple's sales in the coming months, potentially allowing it to reclaim the #2 spot or even reach the top position.

Intensified Competition and Market Trends

Xiaomi's achievement highlights the increasingly competitive nature of the global smartphone market. As brands converge in terms of technology and pricing, factors like device ecosystem, product design, marketing strategies, and research and development play a crucial role in capturing market share. Xiaomi's recent success demonstrates the effectiveness of its strategic shifts and its strong position in price-sensitive markets.

The battle for smartphone dominance continues, with Apple's new iPhones and emerging trends like foldable devices and AI-powered features set to shape the market in the coming months.