Chinese smartphone makers taking on bigger market
BEIJING, Aug 25, 2013 (Xinhua via COMTEX) --
Chinese smartphone maker Xiaomi has
said the company is now worth 10 billion U.S. dollars after a new
round of funding, presenting the latest evidence of Chinese
smartphone makers' breakneck growth.
The private company owns the sixth-largest market share in China,
ahead of Apple Inc., according to global research firm Canalys.
Xiaomi's share in the second quarter this year was 5 percent, a notch
above Apple's 4.8 percent.
In the second quarter, electronics manufacturer Samsung from the
Republic of Korea led with a market share of 17.6 percent, followed
by four domestic companies -- Lenovo, Yulong, ZTE and Huawei, which
ended up ranking from two to five, according to Canalys.
The rankings were compiled before Xiaomi launched its new
smartphone, Hongmi, or Red Rice, which is expected to be this year's
Priced at 799 yuan (128.87 U.S. dollars), the first batch of
100,000 Hongmi handsets sold out in just 90 seconds. In contrast,
Apple's iPhone 5 starts at 5,288 yuan, while Samsung's Galaxy S4 is
Founded in 2010 in Beijing, Xiaomi sold its first smartphone in
September 2011. Last year, it had sales of 7.2 million units. Lei
Jun, founder and chief executive of Xiaomi Technology Co., has
forecast sales will double in 2013 to reach 15 million.
The secret to Xiaomi's success is low-priced smartphones, like
most of its domestic rivals, analysts have stressed.
Buoyed by their success on the domestic market, Chinese smartphone
makers are tapping into the global market.
Chinese handset makers now make up one-fifth of the world's
branded smartphone market, up from 15 percent a year earlier,
according to Canalys.
Yulong and Lenovo (00992.HK; LNVGY.PK) have entered the top five
of global smartphone makers, pushing out better known Western names
such as Nokia and BlackBerry that once dominated the market.
The shipments of Chinese companies still sit far below Samsung and
Apple, and the two giants are expected to continue to dominate as
demand for high-end phones grows. However, the market for low- and
middle-end smartphones is projected to see explosive expansion, and
that will be where Xiaomi, Yulong, Lenovo and others continue to
prosper, analysts said.
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