Xiaomi had a mixed quarter in Q1 2017. Despite global smartphone shipments posting -14% YoY decline, the vendor ranked the 7th position in global smartphone market with 4% market share.
We are very impressed by the vendor’s growth in India. Healthy demand of low end Redmi Smartphones series, dedicated local manufacturing, and accumulated brand equity jointly enhanced the vendor’s performance in the country.
However, China continued remaining weak. Xiaomi’s gamble in chipset has not yet paid off, and Mi6 is suffering from supply shortage of key components like Snapdragon 835. We do not expect Xiaomi will turnaround China market in the near future, due to channel shift and hyper competition.
While we were impressive by its robust growth in India, we don’t think the growth will offset Xiaomi’s decline in home market. Xiaomi will continue under downturn track for this year.
Q1’17: XiaoMi : Impressive Growth in India was published and WSS clients please click here to access the full report.
