Xiaomi beats Apple to become world’s 2nd smartphone brand

Xiaomi has become the world’s second smartphone brand in terms of global sell-through volumes, beating Apple for the first time in three years. According to the latest report by Counterpoint Research, Xiaomi’s smartphone sell-through volumes grew in August 2024 even though its sales volumes did not show a month-over-month uptick. On the other hand, Apple saw a slump in iPhone sales during the same period – a month ahead of the iPhone 16 launch.

Counterpoint Research’s latest Smartphone 360 Monthly Tracker report has highlighted that Xiaomi also emerged as one of the fastest-growing smartphone brands this year through a rejig in sales strategy. The growth also shows the turnaround by Xiaomi from a weak 2022 to the first half of 2023 when the Chinese company faced supply struggles across markets. Xiaomi, however, changed its product, sales, and channel strategy to boost the production and supply of smartphones in key markets, most of which saw economic recovery over the last few quarters in the low-end categories. Xiaomi’s spinoff Redmi is a popular brand in key markets – India, Latin America, Southeast Asia, and the Middle East and Africa.

“Xiaomi has adopted a leaner product strategy this year, focusing its energies to create one hero model per price band, rather than launching multiple devices in one segment. Besides, it has also re-energised its sales and marketing focus while continuing expansion into newer markets and consolidating its position in existing markets,” said Tarun Pathak, Research Director at Counterpoint Research. He outlined the change in Xiaomi’s strategy also included making “inroads into the premium segment with foldable and ‘ultra’ devices.”

Xiaomi outperformed Apple in August despite facing challenges like the seasonal decline in the Latin American market. Apple’s sell-through volumes dipped due to the off-season. August tends to be Apple’s weakest month as the company prepares to launch a new generation of iPhone devices in the first or second week of September. Customers hold off iPhone purchases until new models are out, causing Apple’s sales volume to decline significantly nearly every year in August. The report said the iPhone 16 series is “likely to propel” Apple to secure the second or even the first position in the coming months “as sales ramp up.”