Apple's European iPhone sales climb, but not enough to beat Samsung, Xiaomi
New research figures show that Chinese smart phone manufacturer Xiaomi outsold Apple's iPhone in Europe in Q2 2021, and was beating Samsung by the end of the quarter.
Xiaomi Mi 11i smartphones
The latest market research report from Counterpoint claims that Europe is seeing sales of smart phones generally recover from their coronavirus lows. Year on year figures for Q2 2021 were up 33%, but apart from the iPhone SE "bright spot" for Apple, Q2 2020 was the worst smartphone quarter for all vendors, in a decade.
As the market recovers, Counterpoint says that there have been changes in the top end with which firms are selling the most.
The ongoing decline of Huawei has seen OPPO, OnePlus, and realme, all gain sales. Most significantly, Xiaomi moved from third to second, overtaking Apple in terms of sales in Europe during the quarter.
"Xiaomi's news gets even better though," said Counterpoint associate director Jan Stryjak. " Samsung suffered significant supply issues in May and June due to Covid-19 related factory shutdowns in Vietnam, and this has started to impact sales."
European Smartphone Sales Q2 2021 (Source: Counterpoint)
"Samsung's sales in Europe declined by 20% in June 2021 compared to May 2021," he continued, "which opened the door for Xiaomi to become Europe's top-selling smartphone vendor by the end of the quarter."
Stryjak notes, however, that Samsung's problems "should be short-lived." He also notes that in Q2 2021, Apple was "midway between launches."
Read on AppleInsider
Xiaomi Mi 11i smartphones
The latest market research report from Counterpoint claims that Europe is seeing sales of smart phones generally recover from their coronavirus lows. Year on year figures for Q2 2021 were up 33%, but apart from the iPhone SE "bright spot" for Apple, Q2 2020 was the worst smartphone quarter for all vendors, in a decade.
As the market recovers, Counterpoint says that there have been changes in the top end with which firms are selling the most.
The ongoing decline of Huawei has seen OPPO, OnePlus, and realme, all gain sales. Most significantly, Xiaomi moved from third to second, overtaking Apple in terms of sales in Europe during the quarter.
"Xiaomi's news gets even better though," said Counterpoint associate director Jan Stryjak. " Samsung suffered significant supply issues in May and June due to Covid-19 related factory shutdowns in Vietnam, and this has started to impact sales."
European Smartphone Sales Q2 2021 (Source: Counterpoint)
"Samsung's sales in Europe declined by 20% in June 2021 compared to May 2021," he continued, "which opened the door for Xiaomi to become Europe's top-selling smartphone vendor by the end of the quarter."
Stryjak notes, however, that Samsung's problems "should be short-lived." He also notes that in Q2 2021, Apple was "midway between launches."
Read on AppleInsider
Comments
Especially when most of Xiaomi's high end products are providing in demand phones and a plethora of services and thousands of ecosystem products offered through partners. Even if they do so on 'razor thin' phone margins.
Most of the other big Chinese brands also offer great phones too, along with huge ecosystems.
The issue has been expansion outside China. Until recently it was Huawei which ruled the roost outside China but for the last three years both Oppo and Xiaomi have been expanding rapidly in Europe. So much that Xiaomi is now becoming a go-to brand here and the Chinese brands are bringing more and more of their ecosystem partner products to the rest of the world.
Apple literally sat on most of its money for a decade. It really didn't do much with it. I'd rather they simply charged me less, which ironically, is what they've been doing over the last few years on many models which, ironically again, they needed to do as part of efforts to stimulate demand.
And let's not forget, every sale to Xiaomi means one less potential sale to Apple.
Apple has an almost completely separate market form Android OS devices, so there is little crossover. You have even acknowledged that your preferences lie completely with Android OS over iOS.
So the question becomes, is there an expansion of Android OS sales in the EU and a reduction in sales of iPhones.
https://www.statista.com/statistics/639928/market-share-mobile-operating-systems-eu/
It looks like Android OS sales peaked in 2020, and iPhone has 30% of sales and trending up.
I'm not seeing how any of the ecosystems for Chinese phone brand's are superior to iOS, and Apple's ecosystem in general, and why would Apple desire to sell you and your ilk, a cheap iPhone when you and they have a preference for anything other than iOS?
Seems like Apple is marketing to buyers that want iOS, not to die hard Android OS users.
Historically it has been China that has seen most of that market drive but now, they are pushing things in Europe too.
Just today, on my way into Barcelona, I saw two huge billboard ads announcing the arrival of Midea in Spain. So, after HiSense and Haier, Midea is breaking into Europe as well. After announcing that almost all of its products will support HarmonyOS.
Xiaomi shouldn't be judged solely on its phone margins. They have a bigger plan in place. No one knows exactly how it will play out in the long term but there is method to the madness.
Growth beyond that, not so much.
Honor is back up and running as an independent company and will eventually return to Huawei.
Huawei is pushing a ton of non phone hardware into the CE market.
This year it is forecast to increase its 5G base station share worldwide.
It is moving fast in the automobile market with hardware and self driving tech.
It is breaking records in AI.
It is pushing ahead with its data centre and solar energy divisions.
HarmonyOS 3 will be revealed next month
Hisilicon is increasing its workforce and Huawei has been investing aggressively in chip fabrication technology since 2019.
And that is just the tip of the iceberg.
Dead, you say?
https://www.lightreading.com/5g/huawei-once-5g-leader-cant-offer-5g-in-its-newest-phones/d/d-id/771203#.YQatdcIsDsY.twitter
https://www.wsj.com/articles/huawei-loses-cellular-gear-market-share-outside-china-11615118400
https://www.gizmochina.com/2020/08/20/huawei-build-45nm-chip-hisilicon-engineers-walking-out/
https://www.verdict.co.uk/huawei-creating-jobs-everywhere-except-the-usa/
The most recent fabrication nodes are of zero use to over 90% of the world's needs. In fact it is in nobody's interest to use them outside of very limited use cases. It wouldn't make economic sense.
Take a peek at HiSilicon's product catalog and you'll see why they employ 7,000 people.
https://www.o.hisilicon.com/
Kirin isn't everything at HiSilicon and Kirin isn't dead either. If you believe the rumours you might even see a Samsung fabbed new Kirin chip next year.
And this just fresh out of the HiSilicon gate. Already 100% Chinese.
https://www.gizmochina.com/2021/08/02/huawei-hiair-low-latency-image-transmission-tech/
You didn't say you were talking about Huawei's phone business. You said Huawei.
It doesn't matter, though because Huawei's phone business isn't dead either. It is being regeared but it won't be instant. However, it won't take years either. It is using MediaTek and QC chipsets (just as it always has!). The difference being that a few years ago they were using less and less processors from them and now they will use more until the re-gearing process is finished.
Honor was spun off. If you are a betting man, put a bet on Honor returning to the Huawei fold as soon as it reaches processor independence.
In the meantime tablets, watches, fitness bands, earbuds, sound equipment, smartscreens, monitors, PCs, laptops etc are being brought to market. That's just CE.
With China being the biggest user of processors, what do you think will happen once they can satisfy there own needs and take a pass on US options? What will happen then?
Remember that both ASML and TSMC have lost billions in trade due to extraterritorial US 'sanctions'. They are not happy and are making their discontent known.
The Chinese handset manufacturers 'punished' Qualcomm by ordering more chips from MediaTek which in turn took it to the number one position worldwide.
MediaTek is now moving into the ultra premium band.
Samsung is also moving up a gear.
ASML and TSMC haven't lost billions. They still have more demand than they can satisfy, and its all outside of China.
Oh, and the Kirin 9000 from Samsung, rumored to be in production back in March, crickets...
Get you story straight about Mediatek, which is also a Taiwanese company;
TSMC now has problems recruiting tech staff as China pumps up its efforts for semiconductor self sufficiency. TSMC is being subjected to an extraterritorial double whammy. They have lost billions in not being able to trade with Huawei and now have the absolute definite realisation of Huawei becoming a direct competitor down the line. It's now not a case of 'if' but 'when'. And through no fault of their own.
The Dutch government had no autonomous role in impeding the SMIC deal. It had been signed off by ASML without government intervention until the US stepped up pressure. In fact, it seems the machinery will be delivered anyway in the not too distant future.
The world (perhaps excepting the US) knows full well that China's ultimate goal is the post silicon semiconductor age and there is nothing that can be done to stop that.
The Dutch know full well that business with China is not 'short term gain'. It is absolutely necessary because if the Chinese stop doing business with ASML permanently, it won't be a pretty sight.
As for Samsung and Kirin, there may well be things we aren't aware of yet:
https://www.hardwaretimes.com/chinese-semiconductor-firm-claims-its-etching-equipment-is-already-use-at-samsung-tsmc-5nm-fabs/
Perhaps it is a temporal issue with ASML equipment bans, given that Denmark changed its policies late in the process. Countries around the world are tiring of the PRC's bullying and mercantilism. That is a fact.
I really don't care much what China comes up with internally, but given their militarism, especially against Taiwan, I'm happy to see advanced Western technology barred from sale to the PRC, and that's a trend that's accelerating.
GeorgeBMac accused me of being an "anti Communist"; do you agree with him? Seems odd on his part, living in the U.S.
I see myself as an anti-authoritarian, and the covers the PRC, as well as many other countries.
an example of the PRC's economic bullying tactics...
https://ca.finance.yahoo.com/news/china-ban-taiwan-pineapples-backfires-210000757.html
There are currently plans for 30 new fabs in China (more than any other country). 13 of those 30 are destined for processor development. The others are destined for development of the remaining semiconductor branches. These are what we know about. I'm sure there are other advances in technology that are brewing and specifically in the field of lithography that are currently under wraps.
By reading between the lines on various comments from executives at Huawei and HiSilicon, three years is the time frame they seem to be working on to be entirely self sufficient.
In fact, the supply of one specific area within the 5G handset market that currently prevents Huawei from shipping 5G in its new phones will be resolved next year by home-grown technology. You can guess which country is going to lose out (again!) in that area and see its entire supply chain negatively impacted.
Of course no one knows for sure how long it will take Chinese companies to self sufficiently get below 5nm but it will be long before most people think.
I don't know what you 'are' or what you 'aren't' but you are blinded by bias when it comes to your stance on China. That impacts your credibility.
Maybe China will catch up to the West sooner than predicted. but that just means more threats to the West, not just more competition.
I comment on what I know. Most of it is supported by the relevant links.
I know there is literally nothing to support US claims on Huawei. As of course there is nothing to support its prohibition of handset sales either in the US. The Meng extradition case is a farce and the latest documentation has proved that beyond a shadow of doubt.
Instead of playing by established rules, the US chose to try and wreck the entire system. It was a protectionist move in an absurd attempt to artificially maintain its technology lead.
The US has swung wildly from one damaging plan to another, desperate to stop China matching it in technology or, gasp, getting ahead of it.
Huawei offered to licence everything (source code included) to a US entity. Things don't come any more transparent than that. Of course the offer was rejected because the whole reason for the current situation really has nothing to do with the claims.
It speaks of 'clean' networks while having been exposed time and time again as having some of the dirtiest networks out there.
It has been caught time and time again flouting its own promises on not spying on allies. It has lost the trust of its allies. 'America First' was the claim.
Allies would be bullied, bludgeoned and bought if necessary.
The rest of the world took note and is reacting.
That is exactly the kind of behaviour that has led blocs like the EU to seek technological independence. Of course, China has been left with no alternative but to completely sever technology connections with the US on key technologies. The US quite literally pulled the rug out from under their feet and to a lesser degree did the same with anyone from anywhere willing to do business with China.
It literally insists that you get 'permission' from Uncle Sam before you can do business with certain companies. That's right, sovereign states have to get permission just because US technology may have been used in part of a product design. Let me be clear here. This is something you establish prior to sale. You do don't do it after the sale. But the US is hell bent on destroying the idea of global supply chains.
Only a fool would believe that strategy has legs.
So, and it's completely logical, anyone currently using US technology will seek to find alternatives for the long haul. That is happening as I write. The EU processor initiative was designed to bring technological independence to the bloc, specifically so it would not depend on external politics.
China had a similar plan but it has been turbo charged beyond belief now.
The US semiconductor landscape will not be recognisable a few years down the road. The damage has already been done. There is no way things will be the same again.
Is any of what I'm saying actually incorrect? Of course not. Can you paint me a picture of US semiconductor prosperity from any source?
Not even US semiconductor organisations representing literally thousands of US companies have been able to find anything positive in what is going on.
The first and biggest single hit was losing over 11 billion dollars in trade to Huawei.
Well that trade (11 billion dollar's worth) will go straight to US competitors in the EU and Asia and fund Chinese companies to create yet more competitors.
Someone, somewhere forgot that US companies actually need revenues to fund R&D for future developments.
Or will government fund that too? Because one of the big US gripes was that the Chinese government was subsidising its companies.
Again, someone obviously didn't realise that governments are funding companies everywhere, but that includes the US!
Someone even banded the idea of pumping US government money into Nokia and Ericsson to make them more competitive.
Now we have semiconductor shortages and the US suddenly wants to plough billions of government money into the semiconductor industry.
Better late than never but we already know how this will end. US dominance in many fields is passing. It's just happening even more quickly now.
This isn't bias. They are hard, cold facts.
They are also very easy to understand. The problem is that the US elected the worst possible president at the worst possible time and it is now a question of watching everything play out.
Don't eat your popcorn all at once!
Tally up those Chinese made mobile phone sales in the EU and compare them to just five years ago.
Look at Apple's handset business model today and compare it to five years ago. They are radically different.
Now think about the next five years and India, Latin America and Africa. Who is sowing the seeds of growth in those markets today and who will emerge as the dominant players in those regions?
Unfortunately for you, what I have stated about the PRC is true, that the West is growing tired of the bullying from the PRC, and the obvious mercantilism, and is especially concerned over attempts by the PRC to change the rules of order, that have worked so well for the global community. Oh, and really not happy about the PRC's human rights violations, crackdown on democracy in Hong Kong, or the threats against Taiwan. The militarism that the PRC is displaying is very concerning as well, and has had the effect of bolstering our alliances around the world, including in the EU. Who would have imagined the Germany would station a frigate in the South China Sea.
https://thediplomat.com/2021/08/how-a-german-frigate-in-the-south-china-sea-may-upend-beijing-berlin-relations/
Not to worry. Relations between Germany and China were already strained before tasking the frigate to the SCS.
Still, as you are so fond of stating, "we will see".
Unfortunately for China, their economy isn't expected to surpass the U.S. until about 2032, if ever, and the chances of that are decreasing with Xi Jinping in power. I blame this on Xi Jinping's authoritarian rule, over anything else. China's aging population, compounded by its forced birth rate, almost guarantees that the PRC will not escape the "middle age trap", and will end up with a diminishing population, having never become rich.
Have a nice day.