China’s $35 Billion Smartphone Market, Where Does Xiaomi Stand?

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July 27, 2015 by ...

China’s smartphone market is now saturated. Most of the people who want handsets have them. Proof of the enormity of this lies in the fact that this segment was only worth $3 billion in 2010 but $35 billion today (17.2 BN RMB 2010, 251bn RMB today).

The market is highly segmented however, with Chinese companies firmly entrenched at the bottom and mid-level. With the fall of Samsung, Apple now owns the top.

Huawei is trying to encroach on that profit rich slice, and benefitted from the communist party mandating that civil servants switch from Apple to Huawei gear. This has greatly increased Huawei’s footprint and marketshare, but as I said, Apple still owns the top. 

Recent stats showed that Jobs creation earned more profit than all Chinese manufacturers combined. They lap up the cream while domestic firms are stuck in the sludge. 

Overall, companies like Huawei have a great presence, but make pennies on each unit sold. They have to move 20-30 times as much product in order to make as much as the famous American firm. This does not seem to bother them as they continue to cut prices in an attempt at protecting marketshare. 

Cellphone marketshare Q2, 2015

The following is a breakdown of market leaders in terms of sales for ChinaQ2, 2015- according to IHS Technology:

1st  Xiaomi- 18%

2nd Huawei- 16%

3rd Apple- 12%

4th Vivo- 10%

5th Samsung- 9%


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