Xiaomi captured the #2 spot in terms of global smartphone sell-through volumes in August 2024, the first time after August 2021, even as its sales volumes remained flat MoM, compared to Apple’s seasonal decline during the same period according to preliminary numbers from Counterpoint Research’s Smartphone 360 Monthly Tracker. Xiaomi has been one of the fastest-growing smartphone brands in 2024, helping the global market’s path to recovery.

In August, Xiaomi outperformed the market, with seasonal declines in its key markets being offset by promotions-led growth in Latin America. Following its supply struggles in 2022, Xiaomi, like the rest of the smartphone industry, had to cope with a challenging macroeconomic and geopolitical environment in 2023. After a weak 2022 and H1 2023, Xiaomi successfully altered its product, sales and channel strategy and is now finally reaping benefits, enjoying strong growth over the past year and growing YoY nearly every month.

Commenting on Xiaomi’s strategy, Research Director Tarun Pathak said, “Xiaomi has adopted a leaner product strategy this year, focusing its energies to create one hero model per price band, rather than launching multiple devices in one segment. Besides, it has also re-energized its sales and marketing focus while continuing expansion into newer markets and consolidating its position in existing markets. While entry-to-mid-tier devices continue to show strong performance for Xiaomi, it has also made inroads into the premium segment with foldable and ‘ultra’ devices.”

Most of Xiaomi’s key markets have seen economic recovery over the past few quarters, which has been most beneficial for demand in lower price bands. Xiaomi is especially strong in the lower price bands, i.e. <$200, more so following the launch of its price-competitive 5G devices Redmi 13 and Note 13 series. The Redmi devices have been hugely popular, helping Xiaomi gain share across all its key markets, especially in India, Latin America, Southeast Asia and Middle East and Africa.

While Xiaomi capturing the #2 spot in August was largely due to its aggressive growth in recent quarters, Apple’s seasonal slide was also a factor. With the new generation of iPhones usually launching in September, August tends to be Apple’s weakest month in a given calendar year. The launch of the iPhone 16 series is likely to propel Apple to recapture the #2 spot, or even the #1 spot, in the coming months as sales ramp up.

Xiaomi capturing the #2 spot is symbolic of a more significant trend in the global smartphone market. As devices edge closer to each other in terms of technology and price, competition has never been higher among the top brands. With new form factors (foldables) and GenAI features helping brands differentiate their offerings, device ecosystem, product design and marketing strategy and research remain as important as ever, as evidenced by Xiaomi’s recent surge.