The fall of Samsung and will Apple be next?

The underdog that found footing.

If you didn’t know already, Samsung isn’t the second biggest phone maker anymore but why is that? And could Apple be next?

Samsung is in big trouble.

The s21 series sold 13.5 million units in the first six months, compared to the 20 million units sold from last year’s flag ship and comparing that to the 30+ million sold the year before, we see a clear downtrend in Samsung device popularity. Samsung has been overtaken in key markets, their leader is in prison on bribery charges and frankly they don’t seem to know what’s wrong.

In comes the underdog.

Xiaomi. Yes, a Chinese phone manufacturing company. Now we all know what happened to Huawei but Xiaomi is different and in fact, better. One of the reasons why Samsung was dethroned is because they can’t compete with Xiaomi. But how could this be? Simple, Samsung is too big to compete with Xiaomi and so they seem to collapse on themselves. Now looking at a company like Xiaomi, we realise what’s going on.

Samsung has been improving their flagships and pulling other series models in the low to mid range category, but they got so good that they are practically competing with themselves and therefore don’t have much room to maneuver. Despite that, they have to make money from all their products but Xiaomi doesn’t. Let me explain.

Samsung is a large company with thousands of employees while Xiaomi only has about 200. Samsung has allot of brick and mortar stores that you physically have to go to and with covid and lockdowns happening, visiting a store wasn’t a thing. So people when shopping, turned to online shopping which is evident as Amazon gained much more revenue during lockdown, companies that had online ordering and delivery not only survived but thrived! But what does this have to do with Xiaomi?

Xiaomi doesn’t have brick and mortar stores that come with all the extra expenses. Xiaomi has allot of online ads, stores, events and pushes their brand on the internet where everyone is spending most of their time today. Samsung doesn’t really do this, plus it seems consumers are getting a bit bored with Samsung, I think…

You see, Samsung is so big and prestige that they don’t have the freedom to experiment with their devices as much, in fear of making a costly error ( which is why apple is stuck up with its devices too).

Xiaomi on the other hand has a genius strategy to this. They have multiple phone brands under them like Poco and Vivo just to name a few. Giving them the freedom to experiment with phones as much as possible and only add the good stuff to their main brand! Mind blown. But even this alone isn’t enough. Xiaomi doesn’t only make phones, they make other products too. They make scooters and smart home tech and do very well with those products which also acts as a marketing campaign on its own. Getting people hooked on the “Xiaomi ecosystem”. Which brings me to the major thing that caused the fall of Samsung and could also take a bite out of the apple brand leaving just the core.

Pricing.

Xiaomi doesn’t need to make money off of its phones because their expenses are so low and they do well with everything else. This is where things get juicy. Xiaomi’s phones come with Flagship specs but cost half the price! This makes companies like Samsung and Apple look bad ( especially apple) because on an online website for comparisons let’s say GSM arena, you can see Xiaomi’s phones against everyone else’s and when people see the same or better specs but for half the price, everything has already been decided.

What’s stopping Xiaomi from being #1 ?

The same thing that happened to Huawei, Xiaomi is skeptical of entering the US market and getting hit by the same bans as Huawei did. Knowing that the United States is a really big market and that US citizens would love this tech, the risk seems to offset the reward. If Xiaomi was to enter the US market and be safe there is no doubt that apple would come falling out of the tree, maybe one day.

In conclusion,

Xiaomi is one beast of a brand and I would recommend checking them out. Apple is safe for now but maybe not for long.

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