Surprisingly, in a declining market, Xiaomi manages to resist. In Europe, the brand is taking advantage of this to gain significant market share. Oppo and Realme are the most affected, but the leader Samsung is also suffering the consequences.
The smartphone market in Europe is in free fall in the first quarter of 2023, a situation that echoes the global crisis. But, in this technological chaos, Xiaomi resists.
The European mobile phone market has collapsed, like a house of cards blown by a light breeze, with -23% in the first quarter of 2023 for only 38 million smartphones shipped, accordingCounterpoint Search.
Experts agree that this is the lowest quarterly value since the second quarter of 2012. However, among the rubble of this once-thriving industry, only one player stands tall: Xiaomi.
Against this bleak backdrop, Samsung managed to keep its head above water by maintaining its leading position in the European mobile phone market, although sales of its Galaxy smartphones fell by a dizzying 27%. Apple also managed to hold on to second place, with market share up one percentage point year-on-year, despite a 21% decline in sales volumes.
And, here is our Xiaomi hero, who seems to be immune to this crisis. In the first quarter of 2023, Xiaomi was the only major smartphone manufacturer to have been able to increase its market share (+5%) as much as its number of smartphones sold year-on-year. It’s almost as if Xiaomi has found a way to turn this tragedy into an opportunity, brilliantly exploiting the weaknesses of its competitors.
And let’s talk about those competitors: Realme and Oppo are the unfortunate losers in this story, with catastrophic sales figures for the first quarter of 2023. Realme shipped 36% fewer smartphones in Europe, while Oppo suffered a dizzying drop 47%, almost at a standstill following the patent dispute with Nokia.
When it comes to Realme, their news is particularly meager. We no longer even have a contact in France.
What explains Xiaomi’s success in this slump
Ah, the big question: what explains Xiaomi’s success in this slump? Last year, Xiaomi struggled, but today the brand seems to have found the secret recipe to dominate its competitors. So what are the ingredients that have allowed Xiaomi to triumph in this era of crisis?
First of all, Xiaomi fell sharply in 2022. And, at first glance, the Chinese brand has risen. Xiaomi has adopted a bold strategy by multiplying the references on the market. The brand has launched a large number of smartphones, each more attractive than the next, with affordable prices. Xiaomi seems to have understood that, in times of crisis, it is necessary to offer economic alternatives to seduce buyers.
In addition, Xiaomi has been able to exploit the weaknesses of its direct competitors, such as Samsung, Oppo, Huawei and Realme. While the latter are struggling to keep their heads above water, Xiaomi is deftly navigating the murky waters of the market, taking advantage of the mistakes of its opponents to rise to the top.
Thus, Xiaomi is positioning itself as a safe haven brand, offering affordable and high-performance solutions to anyone looking to equip themselves with a smartphone without breaking the bank.
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