According to IDC data, global phone shipments increased by 6.5% annually in the second quarter of 2024. With these data, shipments are seen to grow for four consecutive quarters.

The pricing strategy has more to do with this than ever: the two major manufacturers are determined to continue selling at a high price, and companies that adhere to the quality-price principle are rapidly increasing their market share. If you are thinking of Xiaomi, you are thinking right.

“While the recovery continues apace with the top 5 companies achieving year-on-year profits, we are seeing increasing competition among the leaders and polarization in price ranges. As Apple and Samsung continue to move to the top of the market and benefit the most from the ongoing premiumization trend, many major Chinese OEMs are increasing their shipments at the low end in an attempt to capture volume share due to weak demand. As a result, the proportion of mid-range devices is struggling,” said Napila Popal, research director at IDC.

The overall shipment picture makes one thing clear: Samsung and Apple’s growth is more moderate than either company would like. Both achieved growth of 0.7% and 1.5% respectively in the second quarter of 2024. Its threat? Xiaomi, which grew by 27.4% annually and is already scraping Apple’s market share with its fingers.

In fact, if Xiaomi continues to grow similarly, it will be possible to leave Samsung behind and place the Chinese manufacturer in first place in the ranking. Below the podium, manufacturers such as Vivo grew by 1.8%, followed by OPPO, which also showed moderate growth.

Despite the differences in growth, it won’t be that easy to overtake Google and Apple. Xiaomi shipped 33.2 million phones in Q2 2024, compared to 44.5 for Apple and 53.5 for Samsung. It’s growing much faster and has a relatively similar market share, but Apple and Samsung continue to ship significantly more.

According to IDC, the strategies of the manufacturers are quite different. While Samsung and Apple continue to target the most premium segment, Xiaomi wants to increase its market share by selling cheaper phones.

There are reasons to continue to think that the mobile market will follow this recovery path in 2024; IDC, Boom The use of AI will further increase global sales.

Xiaomi’s data also clearly demonstrates a fact that could prompt other manufacturers to take action: the market wants cheap phones. If manufacturers like Vivo and OPPO want to target ambitious growth, the strategy of premiumizing their mid-range products may not be the best asset.

Image | Xataka

On Xataka | Amid the smartphone sales fiasco, only one manufacturer is saving itself from the fire: Apple