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Analysts throw doubt on Xiaomi’s 10pc ambitions

  • Staff Reporter
  • 19 November 2018

Challenger is faced with static UK market

Analysts have collectively agreed that Xiaomi’s aim to take a 10 per cent market share in the UK in 12 months is a “stretch”, but are confident the manufacturer will provide heavy competition for incumbent rivals.

The aim was revealed by Xiaomi sales and marketing director Wilkin Lee in an exclusive interview with Mobile News last month. The company aims to ship two million devices to achieve its ambitious target.

On November 8, Xiaomi unveiled the Redmi 6A, Mi 8 and Mi Pro smartphones, and showcased technology gadgets including a £399 electric scooter.

CCS Insight chief of research Ben Wood said: “Hitting 10 per cent of the market is a real stretch given the intensity of the competition and current landscape of the UK market. We have established premium brands such as Samsung and then you have the increasingly aggressive Huawei on its market share offensive.

“Two million devices is optimistic in the current economic climate. I don’t think its a slam dunk for Xiaomi to get a 10 per cent share. Its going to need a fair wind behind them to do it.”

Canalys senior analyst Ben Stanton agreed: “Xiaomi can be number four quite easily in 2019. Getting 10 per cent is not impossible, but incredibly difficult and overambitious. It needs to push more models in the market to really do that.”

GfK key account director Imran Choudhary said that the current situation in the UK market is another hurdle that could potentially trip Xiaomi up in meeting its target: “The UK market has been stagnating, so it is making the goal more difficult. It feels a bit of an ambitious target.

Q3 figures for the UK from Canalys place Apple first (47pc) with shipments of 2.7 million, Samsung second (27pc) with 1.5 million and Huawei in third (14pc) with 785,000 for the quarter. Nokia and Sony sit fourth (3pc) and fifth (2pc), pushing out 171,000 and 120,000 devices.

Tags
# Ben Stanton# Ben Wood# Canalys# CCS Insight# chief of research# GfK# Imran Choudhary# key account director# Sales and marketing director# senior analyst# Wilkin Lee# Xiaomi

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