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Xiaomi finding its groove in China smartphone market

Michael McManus, DIGITIMES, Taipei

With interesting designs, superior pricing and an innovative marketing strategy, China-based smartphone vendor Xiaomi was able to become the top local brand in China in the first quarter of 2014, according to the recently published Digitimes Research China Smartphone Market and Industry Tracker report.

According to the Digitimes Research report, Xiaomi saw its quarterly shipment total surpass the 10 million mark for the first time, and the vendor only trailed international brands Samsung and Apple for smartphone shipments in the local China market.

While Xiaomi has targeted several market segments with its attractive designs, the company has significantly exceeded market expectations in the below-CNY1,000 low-cost segment with its flagship Redmi product. Xiaomi's sales have surged over the past few quarters, with its shipments outpacing other local players such as ZTE, Huawei, Coolpad, and Lenovo.

Xiaomi has also maintained a strong marketing buzz in the local smartphone market by focusing its sales through its online platform and only making the Redmi phone available certain days of the week, providing those who are able to purchase the device with a feeling of exclusivity, despite the low price of the model.

Digitimes Research expects Xiaomi to continue with its success in the second quarter with double digit shipment growth, though its quarterly growth rate will be much lower than it was in the previous two quarters.

Content from this article was part of a complete Digitimes Research Chinese-language report that has not yet been translated into English. If you are interested in an English version of the report or wish to receive more information about the report, click here to contact us and we will get back to you as soon as possible. Digitimes Research also provides quarterly tracking services for market sectors such as China Smartphone, China Smartphone AP, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.