Samsung loses global No. 1 smartphone sales ranking to Xiaomi in June

Xiaomi's Mi 11 Ultra / Courtesy of Xiaomi

By Kim Bo-eun

Samsung Electronics for the first time gave the global No. 1 smartphone sales ranking to Xiaomi in June. While the Chinese vendor's rise is attributed to temporary factors, Samsung is facing an increased threat from its competitor, given that Xiaomi for the first time also overtook Apple to clinch second place in the global smartphone market share in the second quarter.

According to market tracker Counterpoint Research, Thursday, Xiaomi accounted for 17.1 percent of global smartphone sales in June, followed by Samsung with 15.7 percent and Apple with 14.3 percent. Xiaomi's sales grew 26 percent in June from the previous month.

Counterpoint Research attributed this to Xiaomi's aggressive expansion and Samsung's smartphone supply constraints due to production disruptions at its Vietnam plant amid the COVID-19 pandemic.

“Ever since the decline of Huawei commenced, Xiaomi has been making consistent and aggressive efforts to fill the gap created by this decline. The original equipment manufacturer (OEM) has been expanding in Huawei's and Honor's legacy markets like China, Europe, Middle East and Africa," Counterpoint Research's director Tarun Pathak noted.

"In June, Xiaomi was further helped by China, Europe and India's recovery and Samsung's decline due to supply constraints.”

Samsung's smartphone manufacturing plant in Vietnam's province of Bac Ninh was affected by a nationwide lockdown in the second quarter.

Xiaomi's sales were propelled by a shopping promotion event in June that sparked consumption in China ― June 18 is the day for mid-year e-commerce promotions for retailers there.

“China's market grew 16 percent in June from May, driven by the 618 event, with Xiaomi being the fastest growing OEM, riding on its aggressive offline expansion in lower-tier cities and solid performance of its Redmi 9, Redmi Note 9 and the Redmi K series," Counterpoint's Senior Analyst Varun Mishra said.

"Xiaomi, with its strong mid-range portfolio and wide market coverage, was the biggest beneficiary from the short-term gap left by Samsung's A series.”

Regarding Xiaomi's monthly sales achievement, an industry official said “Samsung inevitably continues to feel a threat as the leader of the global smartphone market, regardless of how its competitors are doing.”