Xiaomi sales decline - first time

[Pawan Fangaria]

With the end of June, Xiaomi's smartphone sales number for 1st half of 2015 are out. It's a decline at 34.7 million units from last half (2h 2014) at 35 million units, a decline for the first time in Xiaomi's history. That significantly dents the planed sales number at 80 million in full 2015, can it achieve?

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The emerging market mobile phone sales has been on declining mode from Q1 2015. China mobile phone sales in Q1 2015 declined by ~4.3% compared to Q4 2014. And in India, it was a bigger decline in Q1 2015 compared to Q4 2014 at 14.5% for smartphones and even more for feature phones at 18.3%. It will be interesting to see the China mobile phone suppliers' ranking this time.

On worldwide basis, Samsung had toppled Apple in Q1 2015 worldwide sales and Huawei, LG and Lenovo were at number #3, #4 and #5. Let's see more numbers from Apple, Samsung and others this quarter.

 

[serend]

Xiaomi is known to respond quickly to changing market conditions: so maybe this time around it will bounce back. But deep inside, as a technology person, I kinda wish it got punished - for being aggressive only in a limited set of business strategies but not in any kind of real innovation. In particular, Xiaomi's cost-undercutting tactics depresses tech innovation in others, and paradoxically only helps Apple's monopoly in the long term.

 

[Pawan Fangaria]

I agree. We have seen people preferences for Apple phones in China even after they are double the price of Xiaomi phones. Not sure how effective will be Xiaomi's response with such cost-undercutting tactics? It's good to remain cost effective, but that should not be the only criterion.