Xiaomi overtakes Apple as world's 2nd best smartphone brand in August

Xiaomi emerged as the world's second-largest smartphone brand based on global sell-through volume, surpassing Apple for the first time in three years. According to a recent report from Counterpoint Research, Xiaomi's smartphone sales volumes increased in August 2024, despite not showing a month-over-month increase in sales. In contrast, Apple ’s smartphone sell-through volumes declined during the same period, a month ahead of the launch of the iPhone 16 series.

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.”