Xiaomi faces pressure to defend its market in China

Xiaomi has always been regarded as a representative brand of cost performance, making Xiaomi occupy an important seat in the Chinese smartphone market. However, in recent years, Xiaomi has faced the rise of many local competitors, and its market share is under pressure, making Xiaomi’s business performance more competitive with its main rival Huawei.

Lu Weibing, vice president of Xiaomi Group and president of China, confirmed on Weibo at the beginning of this week that the domestic sales of the Mi 10 series have exceeded one million units. For Xiaomi, the Mi 10 series is the first flagship product to target the high-end market, starting at $3,999. The high-end 10 Pro starts at more than 5,000 yuan.

Although the Mi 10 series comes with the essential elements of the flagship mobile phone in the first half of the year, including the top Qualcomm 865 processor, support for 5G, and ultra-high-definition 100 million pixel lenses, the market reviews are very polar. “Rice fans” believe that Xiaomi 10 has successfully laid the position of high-end market for Xiaomi. Still, other comments have pointed out that Xiaomi just built a new mobile phone with various new technologies, and owes its research and development capabilities to develop its technology. That is, the three giants like Apple, Samsung, and Huawei are capable of developing their flagship processors.

Mi 10 is undoubtedly a good phone, but for mainland users, is it the phone they want? The answer seems to be no.

According to the latest data on the domestic mobile phone market, China’s first-quarter mobile phone market sales fell by 30.8% year-on-year, while retail sales fell by 24.69%. In terms of brand sales, Vivo fell by 43.88%. Oppo fell by 39.13%, Xiaomi and Apple decreased by 34.32% and 27% year-on-year, respectively. Huawei outperformed the market, and sales fell by only 11.06%.

If we calculate the results in March alone, Huawei is the only mobile phone brand that has recorded an increase in sales, an increase of 5.83%, and other opponents have recorded double-digit declines.

From the analysis of the overall market share data, Xiaomi’s share fell below 10% in the first quarter of this year, only 9.74%. In comparison, Apple still accounted for 12.55% in the same period, and Huawei led the other competitors by 42.2%.

Although Xiaomi 10 debuted as a flagship in the first quarter of this year, its market response is subject to the epidemic and word-of-mouth, and it seems that it has failed to push Xiaomi’s performance further. Further analysis discovered that Xiaomi’s market share was mainly from the low-end market. The market share of the Mi brand is as high as 7%, while the Xiaomi brand only has a 2% share. It seems that although Xiaomi’s flagship mobile phone performance won some recognition in the market, it appears the loyal Mi fans did not support the product.

While Mi fans did not support Xiaomi, but loyal Apple fans silently supported Apple. Earlier, a Chinese government’s Ministry of Industry and Information Technology’s mobile phone sales report showed that Apple’s iPhone sales in China reached about 2.5 million units in March, an increase of 416% from February. The sales figure reflects that there is still a group of diehard Apple fans in the Chinese market. As long as the iPhone price is adjusted, their purchasing power will be released.

Many e-commerce platforms in China offer discounts for iPhone from last month, stimulating their desire to buy. After the launch of the new iPhone SE, Apple will continue to maintain a strong momentum because of its leading technology in mobile phone development.

Xiaomi is facing an uphill battle in its home market. While the company failed to boost its sales for Mi 10 flagship in the high-end market, the company is facing escalating pressure from Apple In the mid-range market. The future of Xiaomi is still full of uncertainties ahead.

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