Emir BardakçıXiaomi’s position in the premium market is getting stronger, as new reports show that sales of premium models are steadily growing. According to a recent market research report by CounterPoint Research, the smartphone market in China has seen a strong shift towards premium smartphones, with the most expensive $600 smartphones growing from 11% market share in 2018 to 28% market share in 2024.
While the leaders are brands like Huawei and Apple, Xiaomi is gaining strong momentum within this segment. This shift is partly due to Xiaomi sticking to innovation with smartphones like the Xiaomi 14 series and the upcoming Xiaomi 15 series.
Xiaomi’s growing presence in the high-end segment
Market researchers point out that despite Huawei’s leadership in the premium smartphone market among local brands, with a market share of 29% at present, both Xiaomi and vivo are rapidly closing the gap. Xiaomi’s premium market share has grown from 5% in 2020 to 15% in 2024. This steady increase can be attributed to the brand’s constant pursuit of flagship innovations such as advanced camera technology, high refresh rate OLED displays, and superior battery optimizations.
Apple dominated the premium
m smartphone market before Huawei’s 5G resurgence. However, that share has dropped to 54% amid increased competition. Meanwhile, Xiaomi is leveraging its HyperOS ecosystem by optimising software with AI to attract customers looking for an attractive alternative to phones from Apple and Huawei.
The role of market trends in Xiaomi’s strategy
This premium shift has also been seen in the company’s product strategy. The company has invested heavily in premium materials, advanced chipsets, and AI-powered software features to differentiate itself from the pack. Recent launches like the Xiaomi 14 Ultra indicate the company’s ambition to match the best smartphones in camera and processing performance.
Key factors of Xiaomi’s high-growth premium segment:
- Superior Camera System : Leica-tuned cameras with computational photography optimizations.
- Flagship performance levels : The latest Snapdragon processors coupled with improved cooling.
- Premium Design & Build : High-grade ceramic coatings, titanium frames, and ultra-thin bezels.
- Faster HyperOS Updates : Consolidating the software experience through AI-based optimizations.
The future: Can Xiaomi challenge Apple and Huawei?
Despite strong strides, there is still a long way to go for Xiaomi in the ultra-premium segment. While the brand has managed to gain some market share in the premium segment, future success will depend on how it continues to innovate and improve the overall brand perception. With the new Xiaomi 15 series and upcoming AI-powered features, the brand is positioned to take on the leaders in the premium segment.
Source: ITHome
