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Xiaomi chews in Samsung, now the third biggest smartphone seller

News by Luke Jones on Thursday October 30, 2014.

industry news · luke jones

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Lenovo tied up the acquisition of Motorola today and the Chinese giant said the partnership would be the third biggest smartphone brand in the world and will shift 100 million units in 2015. For the time being though third place as been occupied by another Chinese company, Xiaomi, passing LG for the first time to become the third biggest handset seller in the world.

The company has also surpassed its Chinese rivals such as Lenovo, ZTE, and Huawei, although Xiaomi still lags behind industry leaders Samsung and Apple. The meteoric rise of Xiaomi in the mobile space has been unprecedented. The company was founded in 2010 and in four years has positioned itself among the biggest names in the business.

Xiaomi has also disrupted a few of its rivals too, especially Samsung as the Korean company has lost the most ground to Xiaomi's rapid expansion. Apple's model remains largely unscathed as Xiaomi targets mid to low range price points with affordable handsets with a fair amount of quality. Accusations of copying abound and in some cases are hard to argue with, but nevertheless Xiaomi is now a major player in the market.

Operating in China, Xiaomi has doubled sales through expansion in the wider Asian area, and led by former Google executive Hugo Barra, the company still has space to grow. Through the last quarter Xiaomi shipped 18 million smartphones, a sharp rise from the 5.2 million units shipped this time in 2013. The company replaces LG in third place, although the Korean company has not been directly impacted in a sales sense and in fact had its own bumper Q3, selling 16.8 million units, a 4.8 million year on year increase.

Samsung issues are well documented and the company lost over 10% of its market share, but still leads the way with 79.2 million units sold. Apple gained momentum (39.2 million, up 6 million), but Cupertino's model almost discludes the company from these kinds of lists. Either way, the margins Apple plays to and the success of the iPhone determine success for the company, not necessarily market share. Strategy Analytics provided the data and said the following about Xiaomi:

Xiaomi was the star performer in the quarter, capturing a record 6 percent market share and rising into third place in the global smartphone rankings for the first time ever. Xiaomi's Android smartphone models are wildly popular in the Chinese market and it shifts millions of them every quarter through its extensive online and operator channels. Xiaomi's next step is to target the international market in Asia and Europe, where it may face stronger headwinds of low brand awareness and technology-patent challenges next year.

source: Strategy Analytics

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Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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