Xiaomi Unveils $1,600 Rival to Samsung as Stock Soars 300%
Barcelona — Xiaomi released its latest flagship smartphone on Sunday, aiming to compete with market leader Samsung by offering higher-end products.
The Xiaomi 15 and Xiaomi 15 Ultra are the Chinese tech giant's most recent smartphones, with cutting-edge processors and improved cameras. They were revealed during the Mobile World Congress in Barcelona.
The Xiaomi 15 starts at €999 ($1,047), while the Xiaomi 15 Ultra starts at €1,499 ($1,571).
Both devices are powered by Qualcomm's Snapdragon 8 Elite Mobile Platform, one of the most recent processors. The 15 Ultra variant also has a higher-end camera and a larger display.
"Xiaomi has been hugely successful of building its brand with affordable technology and but now it's moving up the value chain as it moves more into premium devices and that's well-suited to the European market where we see an affluent audience," Ben Wood, CEO of CCS Insight, told CNBC.
According to International Data Corporation, Xiaomi's global smartphone shipments will increase by 15.4% yearly in 2024, beating rivals like Samsung and Apple. The company's global market share increased to 13.6% from 12.5% in 2023.
Xiaomi began operations in 2010 by selling low-to-mid-range smartphones at extremely low prices. Since then, it has expanded internationally, strongly emphasizing its European presence. Xiaomi has also developed a portfolio of linked gadgets, ranging from televisions to smartwatches.
Last year, the company entered the electric car market with the SU7 as part of its strategy to diversify beyond consumer electronics. It even brought the automobile to the 2024 Mobile World Congress, displayed at the company's big stand, and generated buzz.
According to Francisco Jeronimo, IDC's vice president of statistics and analytics, the EV has increased Xiaomi's brand awareness.
"They are using the car as leverage to build on their brand, which I think is a clever idea," Jeronimo told the crowd.
"They will get a lot of attention with the automobile, even if it will not be sold in Europe since it is that innovative. Consumers recognize that a company creating a car can make highly lovely phones.
A recent resurgence in the smartphone market, along with the electric car's performance thus far, has fueled an almost 300% increase in Xiaomi's stock over the previous year.
Xiaomi's Hong Kong-listed shares reached a new high this week. The company hopes to maintain that momentum with the release of the latest smartphones and the SU7 Ultra, a high-performance version of its electric car that debuted on Thursday.
Still, the company faces a significant task in the smartphone arena to nibble away at Samsung's market share, especially with other Chinese manufacturers such as Oppo on its heels.
"The difficulty is that the premium category has become extremely crowded, and while all Android phone makers desire to grab share from Apple, the truth is that if you want to expand in Android, you must take it from another Android company. That suggests Xiaomi must be hurting Samsung's market share," according to Wood of CCS Insight.
"But unfortunately, you've got 2 other big Chinese players in Oppo and Honor who are very, very hungry to build shares."