In China, It’s Xiaomi That’s Preferred Smartphone Maker Over Apple

Apple Inc apparently has lost its days of glory in China. A latest survey released by research firm Canalys showed Xiaomi, one of China's low-end smartphone makers, has outbumped Tim Cook's Apple in the country's smartphone ranks to capture the No. 6 spot. Apple Inc slid to No. 7.

The saying big things doesn't always come in big packages, or something like that, certainly comes true in this case for Apple Inc in China.

Despite launching its first device only in 2011, Xiaomi now boasts of a market share of about 5 per cent in China. Its marketing strategy is really just simple - tap the domestic smartphone market, specifically the lower end of the market.

And it seems to pay off, at least if actual shipments were to be compared with Apple Inc's.

In the second quarter of 2013, Canalys said Xiaomi sold a whopping 4.4 million smartphones in China versus the 4.3 million sold by Apple Inc.

"This is amazing for a company that only started to ship products two years ago," she said. "It's really big progress for a company that is so young," Nicole Peng, an analyst with the research firm, said.

And with Xiaomi set to release on Aug 12 the Hongmi phone for only $130, the more Apple Inc's lifeline could be depleted in the world's second-largest economy.

"Low price point is already Xiaomi's selling point and this [phone] is already cheaper; it will probably sell like hotcakes," Charles Custer, editor of Tech in Asia industry Web site, said.

Wall St. Cheat Sheet said pre-orders for the phone have already reached 5 million, attesting to Xiaomi's clout.

"I think it's time for Apple to re-evaluate their product profile for the Chinese market," Ms Peng said. "The country is big enough for them to consider a localised product for China."

Overall, Samsung remained on the top spot in China in Canalys' survey. The South Korean phone maker shipped a total of 15.5 million smartphones in China in Q2 2013, cornering a market share of 17.6 per cent.