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Friday, 29 August 2014 12:09

Xiaomi destroying Samsung in China Featured

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Chinese manufacturer Xiaomi is continuing to dominate the Chinese smartphone market, holding the top spot for the fourth consecutive month, and its international success is "just a matter of time" according to analysts.

The latest smartphone sales data from Kantar Worldpanel ComTech for the three months to July 2014 show Xiaomi, which specialises in high-spec phones at low prices, held 31.6% share of the urban Chinese market, followed by Samsung and Huawei.

Dominic Sunnebo, strategic insight director at Kantar Worldpanel ComTech, said “We have seen huge shifts in power in the Chinese smartphone market over the past year. Xiaomi has been the standout performer and Huawei has also seen excellent growth, while Coolpad has increased its share more modestly from 5.2% to 6.1% over the year. Considering the success of rapidly growing local brands in the Chinese market, it will be only a question of time before they seek further expansion internationally in a similar way to Huawei, and more recently Xiaomi”.

The same success however is not shared by all local brands such as ZTE, Lenovo and Oppo, all of which have seen their shares come under real pressure recently.

In December 2013 Xioami anticipated it would sell 40 million smartphones in 2014, a number it is set to achieve. 

Sunnebo said Android has been instrumental to the success of Chinese brands, and also for smaller local European brands such as Wiko, which have helped grow Android’s market leading share in Europe to 75.1%. Apple still retains second place with a 14.5% share of the market, while Windows takes third, accounting for 8.5%.

In Australia Android is accelerating its lead, albeit somewhat slowly, commanding 66.5% market share compared with 63.4% a year earlier. iOS market share has gained 0.1% from 26.9% to 27.0%, while Windows has dropped a full percentage point from 6.7 to 5.7%. 'Other', which includes Blackberry, dropped from 3.0% to 0.8%.

“It’s becoming increasingly clear just how important Samsung’s existing customers are to driving new sales," Sunnebo said.

"Some 52% of customers who bought a Samsung Galaxy S5 in Great Britain had previously owned a Samsung model, while 20% were previous Apple owners, and 18% moved from HTC. Apple is very good at giving existing customers a reason to remain loyal to the brand and to upgrade to new models when released. Samsung is becoming increasingly adept at employing the same tactic.”

Apple, which is still struggling for momentum in China, is set to unveil its next generation iPhone 9 September.

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