Xiaomi has made significant strides in the global smartphone market, achieving a 15.4% year-on-year growth in shipments for 2024. This impressive performance has enabled the company to outpace rivals such as Samsung and Apple, resulting in an increase in its worldwide market share from 12.5% in 2023 to 13.6%. The surge comes as Xiaomi prepares to challenge Samsung head-on in the premium smartphone segment.
At the recently concluded Mobile World Congress in Barcelona, Xiaomi unveiled its latest flagship smartphones—the Xiaomi 15 and Xiaomi 15 Ultra. The Xiaomi 15 is priced at 999 euros ($1,047), while the more advanced Xiaomi 15 Ultra starts at 1,499 euros ($1,571). Both devices are powered by Qualcomm's Snapdragon 8 Elite Mobile Platform, offering cutting-edge performance for tech-savvy consumers.
The Xiaomi 15 Ultra boasts a superior camera and a larger display compared to its counterpart, catering to users who prioritize photography and multimedia experiences. Despite these advancements, experts highlight the intense competition in the premium smartphone space. “The problem is the premium space is now unbelievably crowded,” said Ben Wood, chief analyst at CCS Insight. He emphasized that while many Android manufacturers aspire to capture market share from Apple, they ultimately need to displace other Android players, particularly Samsung.
In addition to its smartphone innovations, Xiaomi is diversifying its business portfolio. The company launched the SU7 Ultra, a high-performance electric vehicle, on Thursday. This move signals Xiaomi's ambition to expand beyond consumer electronics. Francisco Jeronimo, vice president for data and analytics at IDC, noted, “They are using the car as leverage to build on their brand which I think is a clever idea.”
As Xiaomi pivots towards premium devices and electric vehicles, it faces competition from other Chinese manufacturers like Oppo and Honor, which are also eager to grow their market share. “Unfortunately, you've got two other big Chinese players in Oppo and Honor who are very hungry to build share,” remarked Wood.
Despite these challenges, Xiaomi's recent recovery in the smartphone sector—coupled with the success of its electric vehicle initiatives—has fueled a near 300% rise in its stock over the past year. This remarkable growth has seen Xiaomi's shares listed in Hong Kong hit a record high this week.
Xiaomi's strategy focuses on leveraging its electric vehicle developments to bolster its brand perception. Jeronimo added that, “They will grab a lot of attention with the car even if it's not going to be available in Europe, but it's that kind of innovation.” This innovative approach reinforces consumer trust in Xiaomi’s ability to deliver high-quality smartphones alongside advanced technology.
Xiaomi’s journey began in 2010 with a focus on low-to-mid price smartphones offered at competitive prices. The company's evolution into the premium market aligns with its goal of appealing to an affluent audience in Europe and beyond. As it continues to build a portfolio of connected devices—from TVs to smartwatches—it remains focused on enhancing its brand value within the tech landscape.