Xiaomi first half smartphone sales of 26 million must have come as a surprise especially to Apple Inc. (NASDAQ:AAPL) as they essentially marked the entry of another rival in the space that already has other big competitors. Apple sold a total of 43.7 million iPhone in the second quarter meaning that Xiaomi is slowly gaining market share, considering it is a four year old company.
The major concern at the moment is the fact that Xiaomi operates in China where the population on itself is about 1.3 billion. If Xiaomi is successful in extensively tapping the domestic market, then Apple Inc. (NASDAQ:AAPL) might have got another rival in terms of hardware sales. Xiaomi is a fast growing company and on track to reach the 60 million sales it had projected for the full year.
Bloomberg News’ Mark Milian in an interview on Bloomberg West has noted the huge growth potential that Xiaomi commands that should keep Apple Inc. (NASDAQ:AAPL) on its feet.
“They are way ahead of where they were last year they have almost quadrupled the number they did in the first half of last year, and they are continuing to blow this numbers out of the water,” said Mr. Milian.
Xiaomi expects to record 100 million phones sales as of next year having generated $5.3 billion in the first half of this year. The fact that Xiaomi has sold 26 million devices mostly in china compared to 84 million sold by Apple Inc. (NASDAQ:AAPL) worldwide is another highlight that the company could be in line to compete with Apple on the same level in years to come.
Xiaomi 90% of sales mostly came from China, but the company has reiterated its desire to launch in other big markets like India as it gears to compete in the global stage. Milian believes that China will be the driving force behind Xiaomi growth.
“Right now this is mainly a Chinese story but as they are proving, when you take over China you can take over the world” said Mr. Milian.