Samsung’s Galaxy smartphones have been overtaken by Xiaomi in certain segments of the global smartphone market, signaling a challenge from the rising Chinese brand.
Xiaomi, currently the third-largest player in the global smartphone market, has been rapidly gaining ground.
In the second quarter of this year, Xiaomi’s budget smartphone, the Redmi 13C, outperformed Samsung’s Galaxy S24 series and several Galaxy A models, securing 7th place in global shipment rankings. Xiaomi has been expanding its influence, particularly in emerging markets, by offering devices with strong cost-performance value and its own proprietary operating system (OS).
According to technology market research firm, Counterpoint, Xiaomi’s Redmi 13C ranked 7th in global smartphone shipments during the second quarter of 2024, surpassing Samsung’s Galaxy A05, which ranked 8th, and the Galaxy S24 Ultra and S24 models, which placed 9th and 10th. The top three positions were held by Apple’s iPhone 15 series, followed by Samsung’s Galaxy A15 series and Apple’s iPhone 14 in 4th, 5th, and 6th places.
Xiaomi has, in fact, achieved remarkable growth in just one year. While Xiaomi’s Redmi Note 11 made it to the top 10 in the second quarter of 2022, it dropped out of the top rankings in 2023, only to make a comeback with the Redmi 13C this year.
Launched in November 2023, the Redmi 13C became popular with its affordable price of around $135. It features a 5 MP front camera and a triple-camera setup on the rear with a 50 MP main lens. The phone also comes with a 5,000 mAh battery, making it an attractive option for budget-conscious consumers.
Another factor driving Xiaomi’s recent success is its proprietary HyperOS, introduced last year. The operating system is optimized for multitasking without lag and improves battery efficiency. Xiaomi rolled out HyperOS in the first quarter of 2024 across eight of its devices, including the Redmi 13C.
Xiaomi’s solid performance is particularly evident in emerging markets. In the second quarter of 2024, Xiaomi increased its smartphone shipments in South America by 31% year-over-year, boosting its market share by 2 percentage points to 15%, placing it 3rd in the region. On the other hand, Samsung, the market leader in the region, saw its market share drop by 5 percentage points during the same period.
Xiaomi’s growth in the Middle East was even more remarkable, with a 67% increase in shipments, raising its market share by 6 percentage points to 15%, also ranking 3rd. Samsung, which holds the top spot in the region, experienced a 1 percentage point decline, with its share now at 23%. Just a year ago, Samsung’s lead over Xiaomi in the Middle East was nearly threefold, but by the second quarter of 2024, the gap had narrowed to just 8 percentage points.
Xiaomi’s overall global growth is also noteworthy. In the first quarter of 2024, Samsung led the global smartphone market with a 20% share (59.4 million units), followed by Apple with 17% (50.6 million units), and Xiaomi close behind at 14% (41.6 million units). In contrast, in the first quarter of 2023, Samsung held a 22% share, Apple 21%, and Xiaomi only 11%.
Nam Sang-wook, a researcher at the Korea Institute for Industrial Economics & Trade (KIET), said, “If Xiaomi continues to grow rapidly with its affordable prices, it could pose a threat to Samsung. Samsung may face significant challenges and needs to consider new strategies to maintain its leading position in the smartphone market.”
