Apple loses Chinese smartphone crown to iPhone imitator Xiaomi

As market consolidation continues in China, one in three smart phones shipped were from Huawei or Xiaomi in Q2 2015, Canalys says. Xiaomi regained its crown as the largest smart phone vendor in China with 15.9% market share, according to Canalys estimates. Huawei, growing 48% sequentially, is the fastest growing vendor in China’s top ten. Huawei’s 15.7% share leaves a very slim lead for Xiaomi. Apple fell to third place, followed by Samsung and Vivo. Those companies’ share percentages will be released in Canalys’ full report due later this week.

“The China smart phone market continues to mature, remaining stagnant quarter-on-quarter. Competition among major brands has never been so intense. Huawei recorded the highest smart phone shipments in its history without compromising its product margin or profitability. Apple and Samsung have both increased their sales activities in the China market, expanding rapidly in channel coverage through flagship stores and small to medium size phone retailers respectively. Xiaomi is under immense pressure to maintain its top position in the quarters to come,” said Jingwen Wang, Analyst at Canalys, in a statement.

“Apple is coming off a record-breaking first quarter of sales in greater China — which includes Hong Kong and Taiwan — where they reaped $16.8 billion on a 71% increase from the previous year, and the iPhone 6 and iPhone 6 Plus have yet to be replaced by their newer iterations,” Jonathan Chew reports for Fortune. “Those phones are expected to be launched next month.”

Xiaomi’s MIUI 6 Android skin mimics Apple's iOS 7
Xiaomi’s MIUI 6 Android skin mimics Apple’s iOS 7

 

Xiaomi MiPad
Xiaomi MiPad

 

Xiaomi M4 (left), Apple iPhone 5s (right)
Xiaomi M4 (left), Apple iPhone 5s (right)

 
Read more in the full article here.

MacDailyNews Take: Cyclical seasonality.

SEE ALSO:
Don’t be silly, Xiaomi is no threat to Apple – January 19, 2015
Xiaomi, which makes billions ripping off Apple, warns people not to buy knockoff versions of its devices – January 12, 2015

14 Comments

    1. Whoa there Jeeve! Profit/margin matters but let’s not discount market share. A lot of profit on a very,very small market share doesn’t do Apple any good. So remember, you need all you can get in marketshare. Think what Apple would have in the bank if they had the number one position AND their profit to go with it. So remember basic economics in the future please. I don’t think Steve would have been bragging about third-place as you do. And I doubt that the folks at Apple want to stay number three either.

  1. Not sure why MDN et al. feel they have to treat the non-transparent estimates of analytic houses such as Canalys as fact. Xiaomi has been on the skids this year, and I am especially dubious about this convenient report.

  2. It’s just bent analists pushing out the old ‘shipped’ vs. ‘sold’ scam all over again. They do this whenever they want to push the stock price down.

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