Xiaomi updates its history According to the official page, Canalys, the leading global market research firm, launched its Q2 global smartphone market report. In the report, Xiaomi took second place […]
Xiaomi updates its history
According to the official page, Canalys, the leading global market research firm, launched its Q2 global smartphone market report. In the report, Xiaomi took second place with a 17% share and an 83% YoY growth, surpassing Apple.
As a result, the report expressed that Xiaomi is now transforming its business model from challenger to incumbent. It also suggested that the Chinese company needs initiatives such as channel partner consolidation and more careful management. Therefore, Xiaomi’s new goal should be to displace Samsung to become the world’s largest vendor.
Lei Jun, CEO of Xiaomi, pointed out that becoming the World’s No.2 is a key milestone in company’s history. After five years of self-improvement under extremely difficult conditions, Xiaomi’s product capabilities have been enhanced significantly. In fact, the Chinese mobile giant paved the way for the premium market segment and increased its market share. Xiaomi will continuously strengthen its core capabilities and cement its place as the second largest smartphone brand.
In Q4 2020, the global shipments of Xiaomi reached 43.4 million units with 31.5% YoY growth. This result surpassed Apple for the first time and returned to the third place. However, in Q1 2021, Apple rose to No.2 with 15% of global smartphone market share. On the other hand, Xiaomi still kept 14% of the market share. In the same period, Xiaomi’s global smartphone shipments were 49.4 million units back then with 69.1% YoY growth.
Since Xiaomi launched its first premium flagship Mi 10 series, it has been continuously innovating in critical areas. For example, they are imaging, display, charging, smart manufacturing and more. Xiaomi has invested in breakthrough in premium market and cutting-edge leading technology to shape the direction of the industry.
Xiaomi has been the first to bring numerous industry-leading technologies to market. For instance, it innovated camera technology by introducing the 108-megapixel camera, the GN2 camera sensor and an innovative liquid lens. When it comes to display, the Chinese company has been pioneering the technology research of the third generation under-display camera.
Furthermore, Xiaomi has led in battery charging, realizing 200W wired charging and 120W wireless charging for the very first time. In addition, it was the first company to introduce graphene-based lithium-ion batteries and second-generation silicon oxygen batteries. Xiaomi is also a pioneer in mobile phone ceramics, leading the trend of industry exploration.
Xiaomi innovates not only smartphones but also its production. In fact, the first phase of Xiaomi’s smart factory has started operation. Its production lines are automated and capable of manufacturing a million high-end smartphones per year. What’s more, it is also a huge lab facility. In fact, the company can research new materials and technologies as well as test advanced manufacturing and production processes there.
Why Xiaomi has realized a series of innovation? This is because innovation is part of Xiaomi’s culture. In fact, the company invests considerably in R&D and recruits the very best talent all over the world. More specifically, Xiaomi has invested nearly RMB10 billion in R&D in 2020. Furthermore, the number is expected to increase by 30-40% in 2021.
At the beginning of 2021, Xiaomi announced the biggest recruitment for engineers in its history. In fact, the number will be 5,000 engineers in one single year, which will occupy 20% of total employees. At the same time, Xiaomi has launched multiple talent incentive initiatives. For example, they are one million US dollars award project for technology talents, young engineer’s incentive plan, etc.
Core business, new business
As we see the other article, Xiaomi is planning to produce its Electric Vehicles in the near future. However, it needs tons of investments to produce EVs, in fact. In the article, the company is going to invest in $10bn over ten years. How many companies can invest in $10bn over ten years? The number might be really few. Of course, it is a kind of theory to earn money in core businesses for investments in new businesses. However, the reality is different, or it is easier said than done in other words.
When it comes to Xiaomi, the Chinese mobile giant shows its excellence in its core business, smartphones. As we see above, the company has clear strategy, takes appropriate actions, makes bold decisions and makes it happen. The company has tried to realize innovation for its entire history. As a result, it became the 2nd largest mobile manufacturer in terms of shipments. Of course, the company’s journey is still going, so we look forward to future innovation more.