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Why is Xiaomi leading the smartphone market?

In a recently announced report by CounterPoint,Xiaomi has surpassed the Korean giant Samsung to become the world's largest mobile vendor on the basis of shipments.

Image Courtesy:Counterpoint Global

Let's see what happened which transformed Xiaomi from a small software company to a smartphone and IoT product leader today!

1)The US Huawei Ban:
In 2019,the US President Donald Trump banned Huawei from selling its products and using American company's services.The reason was that the American Government suspected that Huawei was linked with the Chinese government and might be transferring them valuable information related to national security.
This brought them to their heels.They were at the top of the smartphone shipments but because of the ban their business came down like a lead balloon.And Huawei was also made to pay heavily to American companies like Verizon for patent infringements.This just crumbled the company's financials!

Now,as their phones had no Google Services,nobody really bought Huawei phones.
However,their ban became a blessing in disguise for the Korean Samsung.They were the only 
non-chinese alternatives and they could directly sell in the entire globe without any government or political hurdles.

However,Xiaomi has grabbed this opportunity from Samsung and made sure that they deliver this time.They realised- "Okay,this is the time to turn the tables." and have released phones after phones which are so value-centric that consumers were directly attracted towards Xiaomi phones.

2)Carelessness at Samsung's end:
For this case,let's take the Indian smartphone scenario.In the below ₹20,000 segment,both Xiaomi and Samsung devices are present.However,the specs to price ratio for Samsung phones is so bad that the consumers are not satisfied after using Samsung phones for a prolonged period of time.

While the Redmi Note 10 Pro Max comes with a super AMOLED,FHD+ and 120 Hz display, Samsung devices have been launched with more bezels,sometimes one of the above things missing.This just crushes the competition for other companies and Xiaomi devices sell like hot cakes!

Adding to the dislike for Samsung,they have started to bake ads into One UI.This is just so bad as they are reputed for security and clean UI experience they provide with their phones and the extra premium they make the consumers pay.
Samsung phones have also been condemned for the Exynos chips they use in markets like India and UK which is almost 20% less faster than its Snapdragon counterpart which is sold in the US.
All these things have made the consumers quite unhappy with Samsung.

3)Xiaomi's Business Model:
Xiaomi was actually a software company.However,it started making phones for the mid-range segment.Soon,it was a hit.After Huawei,it was Xiaomi which changed the consumer's perception about Chinese devices.

The initial Xiaomi phones costed little like other Chinese but there was a certain polish to them.They simply not felt cheap and outperformed their prices severely.

Their business model is also quite amazing.The maximum profit margin on their phones ranges from $1 to $5 maximum.They don't spend their resources on much R&D as they just copy ideas from other established players such as Apple.

Their retail stores are quite widespread too.Customer support is also A+ in our books!

They too have a quite commited fan base around the world.They organise these flashy events called Mi Fan Festivals where digital competitions are organised and prizes are given to the winners which are actually Xiaomi products.

4)Mi 11 Ultra:
This phone actually brought Xiaomi to where it is now.A part of the Mi 11 series of phones,this is the best phone Xiaomi makes now.
This phone was actually so squarely targeted at the Samsung S21 Ultra in order to beat Samsung to dominate the Smartphone scenario around the globe.

Apart from zoom and software bugs,this outperforms the S21 Ultra in every respect.And icing on the cake being that it is cheaper!

This phone has truly cemented the top position for Xiaomi.The phone felt as if Xiaomi has truly made an ultra phone.

Let's see what happens next!







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