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By Catholic Online (NEWS CONSORTIUM)

8/5/2014 (8 months ago)

Catholic Online (www.catholic.org)

Chinese manufacturer knocks South Korean Samsung as leading phone maker in China

How do you pronounce Xiaomi? Think of "show me," and then pronounce the first syllable as if it was in "shower." While Xiaomi in English translates as "little rice," there's nothing little about this Chinese Smartphone manufacturer - Xiaomi has knocked South Korean company Samsung off the throne as China's foremost Smartphone maker. 

Xiaomi has evolved from a niche player in China to a major force in its home market.

Xiaomi has evolved from a niche player in China to a major force in its home market.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

8/5/2014 (8 months ago)

Published in Technology

Keywords: Xiaomi, Samsung, China, Smartphone


LOS ANGELES, CA (Catholic Online) - The Chinese smartphone maker shipped more units than its South Korea-based rival for the first time in the second quarter.

Founded in China in 2010, releasing its first smartphone the year after and going on to sell some 27 million handsets in two years, has ambitious global expansion plans. They're looking to take on Southeast Asia in the short term.

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It's the latest indication that Xiaomi has evolved from a niche player in China to a major force in its home market.

Xiaomi captured 14 percent of the Chinese market in the second quarter, according to research firm Canalys, which translates to 15 million smartphones, a 240 percent improvement over the same period last year.

"This is a phenomenal achievement for Xiaomi," said Canalys analyst Jingwen Wang, who praised Xiaomi's marketing and product lineup.
It must be noted that Xiaomi has only a narrow lead over its rivals. Samsung, Lenovo, Yulong and Huawei all have more than 10 percent of the market. Samsung, in particular, is expected to rebound in the third quarter.

"[Xiaomi] does now need to deliver LTE products in China to address growing demand for 4G services if it is to retain its momentum," Wang said.

Xiaomi is still relatively unknown outside China, the destination for 97 percent of Xiaomi's shipments in the second quarter. But the company has been quietly stockpiling tech talent as it builds a business worth more than $10 billion.

The firm poached Google executive Hugo Barra last year to help fulfill its ambition to become a global player. Indonesia, Mexico, Russia, Thailand and Turkey have all been mentioned as expansion targets.

Xiaomi is renowned for its rabid fan base and skillful marketing. Its phones, which some critics deride as Apple knockoffs -- typically price at around $130, or just about the cost of parts and labor.

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