China’s Xiaomi has officially overtaken Apple (NASDAQ:AAPL) in the global smartphone market, according to a new report from analyst firm Canalys.
Xiaomi held a 17% share of global smartphone shipments at the end of the second quarter, ahead of Apple’s 14%. Xiaomi is now in second place when it comes to global smartphone sales behind first place Samsung, which controls 19% of the worldwide market.
The Chinese smartphone maker posted year-over-year smartphone shipment growth of 83% versus 15% for Samsung (OTCBB: SSNLF) and just 1% for Apple. Xiaomi phones are skewed toward the mass market with the average selling price of its handsets 75% cheaper than Apple’s iPhones.
However, the Beijing-headquartered company is now looking to push into the high-end market. Earlier this year, Xiaomi launched the “Mi 11 Ultra,” a premium smartphone that starts at just under $1,000 U.S. That price range pits Xiaomi against Apple and Samsung in the premium phone segment.
Xiaomi has benefitted from Huawei’s struggles. Huawei was once the largest smartphone player in the world, but U.S. sanctions cut the Chinese company off from critical supplies including software and semiconductor chips, causing its sales to plunge this year.
While smartphones still account for most of Xiaomi’s revenue, the company says it is looking to get into new business areas. In March, the technology firm announced plans to launch an electric vehicle business and invest $10 billion U.S. over the next 10 years in it.
