One of the more well-known Chinese smartphone brands is Xiaomi. The company has been successful in creating a large presence in marketplaces all over the world, particularly in emerging economies. Xiaomi would be listed as Samsung’s top rival in these areas if you were to ask someone.
The aspirant Samsung rival is not impervious to world events, though. Xiaomi suffered significantly more damage than the market anticipated, whereas Samsung maintained its composure admirably throughout the worldwide pandemic, economic worries, and conflicts.
Xiaomi may suffer a severe setback in India.
One of the greatest downturns in decades has hit the global smartphone market. Samsung is reducing manufacturing as a response to the difficulty. With 50 million devices still unsold, the corporation ultimately opted to reduce manufacturing by millions of units.
Xiaomi has suffered a lot. Growth at the Chinese corporation has been halted by the global smartphone market collapse. According to the company’s most recent quarterly reports, net income for the quarter ending June 2022 was only $204 million, a decline of 83%. Additionally, the business witnessed a 20% reduction in revenue.
Samsung’s smartphone division likewise experienced a modest dip in profitability during the most recent quarter, although revenues actually rose 31% year over year. It demonstrates the persistently high demand for Galaxy devices.
It has been challenging for Xiaomi to remain competitive. IDC market data shows that Xiaomi’s global device shipments decreased by more than a fourth in Q2 2022. This was the top five vendors’ most significant fall. Xiaomi smartphone shipments in China decreased by 22% from the 14.7% market average.
Before things get better for Xiaomi, they can get worse. One of its main markets is India, where it might not be able to sell gadgets for less than $150. The purpose of the government is to prevent Chinese manufacturers from marketing products for less than $150. These businesses rely on this market for a major portion of their sales. Samsung’s superb Galaxy M series will be available to pick up the pieces if that occurs.