Overall, the Indian smartphone market may seem to have stabilized, but it is still growing rapidly. Its quarterly estimate is based on forecast data collected by the Canalys' smartphone analysis division. Xiaomi's rise is in no small part due to its efforts in the Indian market and we expect the company to sit at the round table alongside monoliths like Apple, Samsung, and Huawei within the next few years.
You may have heard that Xiaomi is planning to hold an event in India on November 2 where the company plans to unveil a brand new smartphone. According to research firm ComScore's report in August, Apple still has the lion's share of the USA market - 1 in 2 smartphones sold in the U.S.is an iPhone.
Commenting on the development, Canalys analyst Ishan Dutt said the growth comes as a relief to the smartphone industry and clears the doubts about India's market potential.
Xiaomi India head Manu Kumar Jain, in a late Thursday Facebook post, said the company was the only smartphone maker to sell more than 4 million units across Amazon, Flipkart, Mi.com, and through offline channel partners in the month-long Diwali sales period which started on September 20.
Shipments are expected to keep growing due to "low smartphone penetration and the explosion of LTE", so the USA is unlikely to be able to return to the second position. The market is dominated by five key brands, including Samsung, Xiaomi, Vivo, Oppo and Lenovo with the first two accounting for 46.5 percent of shipments.
Canalyst Analyst Rushabh Doshi said that Xiaomi's growth is an example of how a successful online brand can effectively enter the offline market while maintaining low overheads. Three out of the top five best-selling smartphones in India were from Xiaomi alone. While Samsung is a top seller, Canalys Analyst Rushabh Doshi believes that cheap smartphone maker Xiaomi will soon over take the Korean company "within a couple of quarters".