Emir BardakçıXiaomi’s premium market position is becoming stronger, based on new reports that reflect steady growth in premium model sales. According to a recent market research report conducted by CounterPoint Research, the smartphone market in China has experienced a sharp shift towards premium smartphones where smartphones that are more expensive than $600 are growing from 11% market share in 2018 to 28% market share in 2024.
While the leaders are brands like Huawei and Apple, Xiaomi is gaining strong momentum within this segment. This shift partly arises from the fact that Xiaomi has held fast to innovation through smartphones like the Xiaomi 14 series and the forthcoming Xiaomi 15 series.
Increasing Presence of Xiaomi within the High-End Segment
Market researchers highlight that despite Huawei’s leadership in the premium smartphone market among local brands with a 29% market share currently, both Xiaomi and vivo are rapidly closing the gap. The premium market share of Xiaomi has gone from 5% in 2020 to 15% in 2024. This steady rise can be attributed to the brand’s consistent pursuit of flagship innovation like advanced camera tech, high-refresh-rate OLED displays, and superior battery optimizations.
Apple dominated the premiu
m smartphone market before the resurgence of Huawei 5G. However, that percentage has declined to 54% following the rise in competition. Meanwhile, Xiaomi is capitalizing on its HyperOS ecosystem through AI-powered software optimization to poach customers looking for an attractive alternative to both Apple and Huawei phones.
The Role of Market Trends in the Strategy of Xiaomi
This premium shift has also been seen within the product strategy of the firm. The company has made large investments in premium materials, advanced chipsets, and AI-powered software features to differentiate themselves from the group. The recent launches such as the Xiaomi 14 Ultra indicate the firm’s ambition to be comparable to the top smartphones in camera performance and processing.
Key Drivers of Xiaomi’s High-Growth Premium Segment:
- Superior camera system: Leica-tuned cameras with computational photography optimizations.
- Flagship Performance Levels: Latest Snapdragon processors along with improved cooling.
- Premium Design & Build: High-quality ceramic backings, titanium frames, and ultra-thin bezels.
- Fastest HyperOS updates: Consolidating the software experience through AI-driven optimizations.
The Future: Can Xiaomi Challenge Apple and Huawei?
Despite the strong gains, there is a long way to go for Xiaomi in the ultra-premium segment. Although the brand has managed to gain some market share in the premium segment, future success will be based on how it continues to innovate and enhances the global brand perception. With the new Xiaomi 15 series and future AI-powered features, the brand is positioned to take the leaders head-on in the premium segment.
Source: ITHome
