Xiaomi ranked first in the smartphone market in China beating Samsung. (image: World Leaks/flickr)
SEOUL, Aug. 7 (Korea Bizwire) – Samsung Electronics is losing its power seller status in the lower-end smartphone market in China pushed back by local smartphone providers led by Xiaomi.
According to Business Week on August 5, Xiaomi ranked first in the smartphone market in China beating Samsung by quoting a report of market research firm Canalys. During the second quarter, Xiaomi shipped 15.2 million units of smartphones and Samsung sold 13.2 million smartphones during the same period. Xiaomi topped with 14 percent of market share followed by Samsung’s 12 percent.
In the past, Samsung boasted the overwhelming No. 1 position with 22 percent of market share in the Chinese smartphone market but its fame was scratched by the low-cost phones and online marketing tactics by Chinese smartphone providers. In the meantime, Xiaomi’s market share skyrocketed to 14 percent from 5 percent last year.
Xiaomi expanded its smartphone sales volume by selling at a price close to cost and during the first half it sold a total of 26.1 million units. But its market power is limited within China. Canalys pointed out that 97 percent of its sales were made in China.
Samsung is the only foreign smartphone manufacturer among the top-five players in the Chinese market, and other four Chinese providers took more than half of the market share. Apple, the only foreign brand together with Samsung among the top-ten players in the market took 6 percent of the market share.
Meanwhile, Samsung secured the No. 1 position in the smartphone market in India during the second quarter. However, in the total mobile handset market including conventional mobile phones, it ranked second with a 14.4 percent market share by Indian smartphone provider MicroMax (16.6%).
By John Choi (johnchoi@koreabizwire.com)
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