Samsung has been the number one smartphone brand in China for several years but now Xiaomi has taken that spot with a reported 14% market share while the Korean electronics giant came in at 12%.
We reported on the struggles Samsung is facing after they announced a drop in worldwide market share from 32 to 25%, profits and revenue also decreased.
The main challenge Samsung has is gaining traction in the low- and mid-range segment. This is where Xiaomi has been growing extremely quickly since they started with the Redmi smartphone just a few years ago. The strategy of Xiaomi is clear and has worked well in China. Their phones are full of features and they are selling them just above cost as well. It is all about volume and they spend a fraction on marketing compared to the likes of Apple and Samsung.
So far Xiaomi has only focused on China but they will expand and at that point other handset makers might have to adjust their strategy. In the end this can only be good for consumers.