China's Xiaomi Seizes Samsung's June Supply Shortfall to Become World's No. 1

Counterpoint Research Monthly Report Released
Xiaomi Holds 17.1% of Global Sales Share
Samsung, Ranked 1st, Faces Supply Shortages in Vietnam Due to COVID-19
Greatest Beneficiary Amid Overlapping 618 Shopping Festival

Global Smartphone Sales Share Trends. Source: Counterpoint Research

[Asia Economy Reporter Minyoung Cha] Xiaomi, once criticized as a 'fake Apple' due to its smartphone design resembling Apple's iPhone, has risen to become the world's number one smartphone company. This was thanks to the void left by China's Huawei and the supply shortages at Samsung Electronics caused by COVID-19 in June, which Xiaomi benefited from. Under the leadership of Xiaomi founder Lei Jun, the company is also aggressively targeting Samsung Electronics with bold marketing strategies.

According to the monthly report Market Pulse by global market research firm Counterpoint Research on the 5th (local time), Xiaomi surpassed Samsung Electronics and Apple for the first time ever in June in terms of revenue share. Xiaomi's revenue share was 17.1%, beating Samsung Electronics (15.7%) and Apple (14.3%). Its monthly growth rate was also the steepest among the three brands, at 26% compared to the previous month.

Xiaomi has steadily taken market share amid the US sanctions on Huawei. Especially in June, the annual Chinese online shopping festival '618 Shopping Festival' combined with supply shortages at competitor Samsung Electronics led to strong sales. While customer demand increased, Xiaomi benefited from the weakness of the leading competitor.

Tarun Pathak, Research Director, said, "Since Huawei began to decline, Xiaomi has continuously made aggressive efforts to fill the gap. Xiaomi has expanded in legacy markets of Huawei such as China, Europe, and Africa, and in June, the market dynamics helped with the recovery in China, Europe, and India, combined with Samsung Electronics' supply constraints."

Varun Mishra, Senior Analyst, noted, "The Chinese market grew 16% in June compared to the previous month due to the 618 Festival. The continued popularity of the 'Redmi 9', 'Redmi Note 9', and 'Redmi K' series, along with Samsung's production halt in Vietnam due to COVID-19, contributed." Xiaomi is considered the biggest beneficiary due to the absence of Samsung Electronics' Galaxy A series.

Counterpoint Research is paying close attention to the COVID-19 situation in Vietnam. The report stated, "If the situation in Vietnam does not improve, this situation will continue. However, if recovery occurs, rankings may reverse again."

With sharply rising sales in June, the second-quarter performance was also positive. Xiaomi surpassed Apple in sales volume in the second quarter this year, becoming the world's second-largest brand. Since its launch in 2011, cumulative sales have approached 800 million units.

Xiaomi is also implementing aggressive marketing strategies directly competing with Samsung Electronics, the number one smartphone company. Xiaomi founder Lei Jun announced that the 'Mi Mix 4' will be unveiled at an event on August 10, the day before Samsung's second-half Unpacked (new product launch) event. Xiaomi senior executive Agatha Tang also posted a teaser photo of the Mi Mix 4 on Twitter with the phrase 'August 10'. Analysts suggest that unveiling new products just one day apart may be an attempt to weaken Samsung's event.

This content was produced with the assistance of AI translation services.