Xiaomi overtakes Samsung in China as largest smartphone vendor

Xiaomi had a 14 percent share in the market, while Samsung had a 12 percent share

In another sign of worry for Samsung Electronics, the Korean tech giant has lost its ranking as China's top smartphone vendor, after holding onto the position for two straight years, according to research firm Canalys.

In this year's second quarter, Chinese company Xiaomi overtook Samsung to become the country's largest smartphone maker with a 14 percent market share. Samsung held on to the second spot, with a 12 percent share, slightly ahead of third place Lenovo, outshipping it by 200,000 units.

The Korean electronics giant had been China's leading smartphone maker since 2012's first quarter, said Wang Jingwen, an analyst with Canalys. At the time, the company's market share was 22 percent.

In China, Samsung sells a large range of handsets, from high end to low, and benefits from a strong brand and a vast reseller network. But its Chinese rivals are increasingly putting pressure on the company, especially when it comes to selling lower-end phones, Wang said.

"In the mid-to-low end segment, Samsung devices have not represented great value for money in China," she said. The country's largest mobile carrier, China Mobile, is also partnering more with domestic handset makers to launch phones built for its new 4G network, Wang added.

Xiaomi, on the other hand, has been growing fast, largely by selling feature-packed smartphones at just above cost price. This marks the first time the Chinese company has taken the top spot in China, after only starting to sell phones three years ago.

Xiaomi's low-end series of phones, known as Redmi, are driving the company's shipments in China, which reached almost 15 million in the second quarter, according to Canalys. The Redmi phones can start as low as 699 yuan (US$113) when bought without carrier subsidies.

Xiaomi's aggressive pricing is leading the company's success, Wang said. The company has already sold 26.1 million phones in this year's first half, with the goal of selling a total of 60 million by the end of this year. Although not a big name outside of China, Xiaomi is expanding to ten foreign markets this year.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesAndroidconsumer electronicsSamsung ElectronicsXiaomi

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?