The Surprising Shift in Mobile Phones Market Share: Who’s on Top?
Mobile phone sales have always been a tale of two giants – Apple and Samsung. However, with the ever-increasing competition and technological advancements, the market share of these companies is being challenged by new players. In this article, we will take a deep dive into the mobile phone market and explore the unexpected shift in market share.
The year 2020 was a tumultuous year that saw radical changes in the mobile phone industry. Generally, the mobile phone industry as a whole faced major hiccups due to the pandemic. Nevertheless, it was expected that Apple and Samsung would maintain dominance of the market. However, earlier this year, a report by Counterpoint Research showed that Xiaomi had surpassed Apple to become the world’s second-largest smartphone manufacturer by the second quarter.
Xiaomi, with over 17 percent global market share in the second quarter of 2021, increased its sales by more than 83 percent compared to the previous year. Many factors contributed to this incredible growth. Xiaomi’s growth can be attributed to its ability to sell high-end features at affordable prices; good-quality cameras, and consistent phone updates. In contrast, Apple, which traditionally sells pricey phones to high-end users, only managed to capture a 14 percent of the market share.
Another thing that has propelled Xiaomi to the top is the Chinese domestic market. Though the Chinese market alone is not enough to catapult them to the top, it is still, however, the biggest market in the world compared to other smartphone sellers. Xiaomi made up for the loss of sales during the pandemic by expanding their product range to diversify its customer base. The company’s focus has also been on expanding to other regions globally. These steps are sound business strategies because you can’t rely on just one market to survive.
It would be unfair not to mention Samsung as a significant player in the market. Samsung maintained its lead in the market with a global share of 19 percent. Samsung also saw sales increase by 16 percent compared to last year. With Samsung’s multiple product lines, the company reached out to customers with different budgets. The Galaxy S-series and Galaxy Note series cater to the premium customers, while the Galaxy A-series and M series cater to the masses.
Conclusion
The mobile phone market is highly competitive, but the surprising shift in market share shows that established companies must be on their feet to remain in the game. Xiaomi’s rise is a result of a sound business strategy that catered to customers globally, not just focusing on one market. Samsung’s consistent innovation and product diversification continue to see the company’s market lead. Apple’s loss has been a wakeup call, and the company has to look for ways to remain a significant player.
In conclusion, companies must pay attention to changing market trends and adapt swiftly or risk losing their market dominance. It will be intriguing to see how the market will behave in the coming years, but the trends suggest that all the players in the game still have a fighting chance.
