The Business Times
NEW data released by IDC on smartphone sales last week shows that there’s a new kid on the block. According to the research agency’s Worldwide Quarterly Mobile Phone Tracker, in the third quarter of this year, Chinese phonemaker Xiaomi zoomed to the No 3 slot in the global list of top five smartphone makers in the world, behind Samsung (No 1) and Apple (No 2). The Chinese company sold 17.3 million units in the quarter for a 5.3 per cent market, pipping Lenovo (5.2 per cent) and LG (5.1 per cent) to the third spot.
It’s true that, as IDC notes, Xiaomi benefited from its focus on China and adjacent markets. This, coupled with innovative marketing, brought triple-digit year-on-year growth. But, as IDC notes again, it remains to be seen how quickly the company can move beyond its home territories to drive volumes higher.
Was this a fluke, one-off phenomenon?
No, expect more non-traditional brands in the Top 5. This is because the next billion smartphone users are not going to come from established and wealthy markets such as those in North America, Europe, Japan and pockets of Asia such as Australia, Singapore and Hong Kong. They will come from emerging markets such as India, China, Indonesia and Brazil. These markets are characterised by less brand loyalty and extreme price sensitivity.