We know that this moment is coming; we just don’t know how long. According to the latest report from Canalys, emerging mobile phone maker Xiaomi has already made Samsung the leading mobile phone supplier in China.
In the second quarter of 2014, Xiaomi sold 15 million mobile phones, while Samsung mobile phones sold 13.2 million. Samsung’s sales have declined compared to the same period last year, with Samsung selling 15.5 million mobile phones. However, sales of Xiaomi increased by 240% from 4.4 million in the second quarter of 2013.
Xiaomi currently has a 14% share of the Chinese mobile phone market and ranks among the top five mobile phone manufacturers in the world.
One of the biggest factors behind Xiaomi’s success is that it created the iPhone’s look and cost $200 to $300 without a contract.
Xiaomi’s operating system is also very unique. The software is called Miui, which is based on Android, but is customized for Xiaomi users. User feedback facilitates weekly updates to the operating system and helps attract fanatical followers – an Apple approach that appeals to consumers. Considering the company’s CEO Lei Jun, compared with Apple’s legendary leader Steve Jobs.
The company makes money primarily by selling games, apps and internet services.
Xiaomi’s success was also partly attributed to Samsung’s decline in the second quarter. Samsung’s profit fell by nearly 20%, inciting investors to quickly sell the company’s stock after the earnings announcement. Its share price fell 4.5%.
Samsung is still a major player in the world, but Xiaomi is expanding. A new mobile phone market is on the rise, and cheap and beautiful mobile phones occupy the supreme position. If Samsung wants to compete, it will have to offer more dynamic products at a cheaper price.