Sunday, August 10, 2014

Xiaomi becomes China's top smart phone vendor

In the second quarter of 2014, the world's largest smartphone market, China accounted for 37% of global shipments - some 108.5 million units. The five suppliers in China this quarter were all but one local company. And perhaps even more impressively, continues that home-grown success in the Top 10, where eight suppliers were Chinese. In a little over a year Xiaomi overtaking Samsung has to be the niche for leading smartphone vendor in the world's biggest market, quantitatively increased in Q2. Xiaomi took a share of 14% in China, on the back of 240% year on year growth. With Lenovo, Yulong, Huawei, BBK, ZTE, OPPO and K-Touch, the eight Chinese players in the top 10 accounted for a total of 70.7 million units and a market share of 65%. Samsung and Apple, the only international supplier in the top 10 accounted for shipments of 20.0 million units, representing 18% of the total smartphone market in China. 

"This is a phenomenal success for Xiaomi," said Shanghai-based Canalys Research Analyst Wang Jingwen. "There is no doubt helped this by expected time, under-strength Samsung performance during the quarter, but that's only half the story -. Xiaomi has run on its strategy to grow the volume of shipments It has delivered compelling products at aggressive prices. concentrated mainly on the locally relevant MIUI software functions and services, backed by effective targeted marketing. particular its affordable RedMi area is booming and is the driver for growth, despite less attracting global media attention as its flagship Mi products. But it must now must LTE products to supply in China to respond to the growing demand for 4G services, when it retain its momentum. "

97% of the Xiaomi Q2 shipments were in the People's Republic of China. It is now looking to expand into other markets in sight for the second half of the year, with Indonesia, Mexico, Russia, Thailand and Turkey. "His aggressive pricing model is certainly beyond China resonance, but the challenge it is in scaling its successful model on a global stage should not be underestimated," said Singapore-based analyst Jessica Kwee. "Xiaomi needs to build its international brand, and will offer his services to locate with MIUI for the various markets in which it expands, otherwise its differentiation, value proposition and service-oriented revenue sources are being eroded. And it has its marketing and on-line distribution channels largely adapted accordingly. Namely, Xiaomi has the potential to make a destructive force on China and international providers should take note. "

Samsung slide to second place in China for the first time since the fourth quarter of 2011 and 15% compared to the previous year, down rapidly reflects changing demand towards 4G mobile phones, supported by an ongoing pressure from China Mobile behind its 4G services. Samsung's efforts to its channel inventory realign changes in demand during the quarter to meet led to a reduction in the total shipment numbers, which is not expected Q3 2014 affect to a similar extent, although with the market in China, more competitive, is it will not be easy to restore leadership. Meanwhile, Apple had a relatively strong year-on-year performance by 58%, from the position of the iPhone helped one of the few high-end device options available for consumers looking to use 4G services by China Mobile. 

Shipped worldwide in the second quarter of 2014 292.4 million smartphones, which 23% year on year growth and growth of 5% in the first quarter. Despite the challenges in China, Samsung retained its global leadership with a share of 26%, although the lowest global share in two and a half years - down from 32% in Q2 2013 and 31% in the first quarter of 2014 it was still in front of Apple (12%), Huawei (7%) and Lenovo (5%). Strong domestic performance Xiaomi brought it to complete in the global top five with a share of 5%. 

Remarkably, a solid performance from Motorola, helped mainly by the success of the Moto G, it looked achieve a tenth place overall ranking with a share of 3%. Although acquisition of Motorola Mobility, Lenovo of Google is not yet completed, it is expected soon, and the combination of the two suppliers' shipments gives an insight into the market position they hold together in the coming quarters. Between them, Lenovo and Motorola delivered 24 1 million smartphones in Q2 2014, what a comfortable third place position on the world market and a share of 8%. and while the People's Republic of China absorbed 84% of global shipments of Lenovo in the second quarter of 2014 in connection with Motorola, this number drops to 54%, with Brazil, the USA, India and Mexico all see significant item numbers.

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