Leading market research firm Canalys has published its second quarterly global smartphone market report, in which Xiaomi came in second place with 17% share and 83% annual growth, ahead of Apple.
Canalys explained that Xiaomi is now transforming its business model from a challenger role to a market-leading position, with initiatives such as the consolidation of its commercial partner channels and a more prudent presence in the open market. The company commented that Xiaomi's new goal is to displace Samsung and become the world's largest manufacturer.
Xiaomi CEO, founder, chairman and CEO of Xiaomi, pointed out in a letter to all employees that becoming number two in the world is a key milestone in the company's history. After five years of development under extremely difficult conditions, Xiaomi's product capabilities have been significantly strengthened - paving the way for the premium segment and increasing market share. Xiaomi continues to strengthen its operations to consolidate its position as the second largest smartphone brand.
In the fourth quarter of 2020, Xiaomi's global shipments reached 43.4 million units, with an annual growth of 31.5%, overtaking Apple for the first time and returning to the third place. In Q1 2021, Apple moved into second place with 15% global smartphone market share, closely followed by Xiaomi with 14% market share. Xiaomi's global smartphone shipments then stood at 49.4 million units, with an annual growth of 69.1%.
Ever since Xiaomi launched its first premium devices, the Mi 10 series, it has been constantly innovating in key areas such as imaging, display quality, charging, smart manufacturing and many more. Xiaomi is striving to make breakthroughs in the premium market, bring cutting-edge leading technology to consumers and help shape the direction of the industry.
Xiaomi has pioneered many industry-leading technologies. In camera technology, the company introduced the 108 megapixel camera, the GN2 camera sensor and the innovative liquid lens. It has also pioneered display technology with the third generation of under-display camera technology. Xiaomi has also led the way in battery charging, implementing for the first time 200W wired charging and 120W wireless charging. It was also the first to introduce graphene-based lithium-ion batteries and second-generation silicon oxide anode batteries. Xiaomi is also a pioneer in mobile phone ceramics and a trend setter in the industry's discovery trend.
Xiaomi's smart factory has entered its first phase of operation. Its automated production lines are capable of producing one million high-end smartphones per year. The vast laboratory facility allows Xiaomi to research new materials and technologies, and test advanced manufacturing and production processes.
Innovation has been part of Xiaomi's culture from the start, with the company investing heavily in R&D and recruiting the best talent. In 2020, Xiaomi invested nearly RMB 10 billion in R&D, and this year the figure is expected to be 30-401T$3T higher.In early 2021, Xiaomi announced the largest engineering recruitment plan in the company's history: 5,000 engineers will be recruited in a single year, which will account for 201T$3T of total employees. Meanwhile, Xiaomi has also launched several talent development initiatives, such as a US$1 million award program for talented colleagues in engineering and a plan to encourage young engineers. Thanks to the equity incentive plan, nearly 700 young engineers in the company received a total of 16 million shares in July alone.
Xiaomi's global expansion and transformation into new retail channels has been an important driving force in becoming the second largest smartphone manufacturer. According to the latest global smartphone data from Canalys, Xiaomi is rapidly expanding in overseas markets, with over 300% annual growth in Latin America, over 150% annual growth in Africa and over 50% annual growth in Western Europe. According to the company's Q1 2021 report, Xiaomi smartphones have reached more than 100 markets worldwide, ranking first in terms of smartphone market share in 12 markets. Xiaomi currently ranks second in Europe and has been the market leader in India for several years.
