Xiaomi on the Ascent, Eyes New Markets with High-End Android Phones

XIAOMI’S GLOBAL AMBITIONS TO GROW ITS 6% MARKET SHARE

Xiaomi accounted for 6.3% of all smartphones in use globally in August (Android and iOS), with its main competitor Huawei at 8.6%. In China, Xiaomi is currently the fifth-most popular brand and while its market share in China dropped slightly from 2016, it more than doubled from 5.2% to 11.8% in India, where it is now the number two smartphone brand. As a result, the share of Xiaomi’s smartphones used by Chinese consumers dropped to 60% in August 2017, versus 85% a year before. For India, the share rose to about 20% in August 2017, compared to only 7% a year before.

MOVING INTO THE HIGH-END MARKET

Countries not only differ in their share of Android versus iOS devices but also in their share of high-end smartphones. “High-end” in this context refers to phones that have at least 2GB of RAM, 2 CPU cores, NFC, biometric scanning, and 4G compatibility. In the U.S., for example, 34% of Android smartphones can be considered high-end, which is a marked contrast to India or China, where only about 5% of the Android smartphones meet those standards.

MOVING OFFLINE TO MEET CUSTOMER DEMAND

In another strategic move, Xiaomi has also been shifting away from its initial “online-only” sales model, as consumers increasingly want to physically hold a new phone before buying it.

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