Xiaomi smartphones come calling
Xiaomi, the Chinese smartphone brand that has emerged from below the radar to challenge the world’s market leaders, has made its move on the South African market.
In the past month, separate research organisations said Xiaomi has become the second-biggest smartphone maker in the world and the No 1 brand in Europe. Market research firm Canalys released data that showed Xiaomi had overtaken Apple in the second quarter of 2021, with a 17% share of worldwide smartphone shipments.
Samsung led the market with a 19% share, while Apple came in third at 14%. However, the significance of the new market alignment lay in the fact that, according to Canalys, the smartphone market grew by 12% year on year. Samsung outperformed the market with 15% growth and Apple grew by 1%, but Xiaomi shocked the market with 83% growth.
And across Africa, Xiaomi saw 150% growth in shipment.
Research firm Strategy Analytics released new data that showed Xiaomi had topped all vendors in Europe for the second quarter, with 25% market share. Total shipments in Europe grew 14%, to 50-million units. Samsung saw a 7% fall in shipments.
“The European markets for smartphones had a strong quarter driven by Covid recovery, following the crash in 2020,” said Boris Metodiev, strategy analytics associate director. “The highlight of the quarter is Xiaomi emerging as the number one vendor in shipment terms for the first time. Xiaomi shipped almost 13-million units on the continent to displace longtime leader Samsung. Xiaomi … found customers eager for its Mi and Redmi series of feature-rich, value smartphones.”
The latest Redmi models, the Redmi Note 10 series, launched in SA last month, and are expected to spearhead Xiaomi’s efforts to become the No 2 brand in the local market. The Xiaomi Note 10 Pro is a close equivalent to the Samsung Galaxy Note 20 Ultra launched last year, but at less than half the price. Both have a 108 megapixel main camera, although the Samsung device has a more powerful processor and extensive additional features.
The real target for Xiaomi is probably Huawei, which previously held the No 2 position in SA and globally. With new Huawei phones no longer carrying Google’s Android Play Store due to US sanctions against the company, Xiaomi has added a telling slogan to the box for its Redmi devices: “With easy access to the Google apps you use most”.
The new Redmi series is also the first full range to be marketed directly by Xiaomi in SA, after being represented by distributor Mobile in Africa for the past six years.
Nicola Nell, marketing manager for Xiaomi in SA, said the company had entered the local market through distributors “to ensure that they build a firm foundation before entering the market directly”.
“By leveraging off of various distribution channels, Xiaomi was able to construct a solid understanding of the South African smartphone market, and thereafter build a strategy that caters for South Africans’ unique needs and purchasing behaviour,” she said. “After establishing their dedicated team at the end of 2020, Xiaomi has placed a stake in the ground by positioning South Africa as a level 1 strategic growth priority.”
Xiaomi regards SA as “a very technology-forward nation” that has an appetite not only for smartphones, but also for Internet of Things (IoT) home products.
“The key consideration is to create technology that is accessible to everyone, and ensuring there is a piece of Xiaomi smart technology that fits into every South African budget,” said Nell. “In conjunction with expanding our retail footprint, Xiaomi’s larger-scale strategic intent is to cement partnerships with all of SA’s mobile operators. Xiaomi has been available through Vodacom nationwide since November 2020. It is currently in talks with other South African mobile service providers and various retail networks to ensure that Xiaomi devices are available to all South Africans at any retailer.”
In the coming year, it is expected to bring its flagship devices, the Mi series, to SA. The Xiaomi Mi 11 Ultra, released globally in April, targets Samsung’s flagship S21 Ultra, although packing less camera power and its global pricing not offering a price advantage.
Xiaomi’s biggest challenge, it appears, will be to differentiate itself from Samsung at the top end of the market, and from rival Chinese brands Oppo and Vivo in the mid-range.
Along with Tecno, which is also due to launch its latest handsets here soon, these brands have redefined the smartphone market in SA. Nell believes Xiaomi has a solid strategy to address the challenge.
“In terms of the top end of the market, Xiaomi is planning to bring in some of it flagship range by the end of the year. As with all Xiaomi products, this is set to give local competitors a run for their money in terms of price for similar specs.
“From a brand perspective, smartphones are just the tip of the iceberg: one of Xiaomi’s key differentiators is its ecosystem of smart products.”