The emergency coronavirus has brought the world economy to its knees. Many nations have tried to...
2020-05-12 12:33:23
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stronger Xiaomi coronavirus: fourth place in Western Europe

Merit of low prices?

The emergency coronavirus has brought the world economy to its knees. Many nations have tried to defend himself with a more or less long quarantine, which has had and will continue to have major repercussions. The smartphone market showed a heavy -17% compared to the first quarter of last fiscal year, a strong contraction but understandable. Despite a dramatic situation in some ways, the Chinese colossus Xiaomi seems to enjoy excellent stability.
E "stability" is an understatement, since we are talking of the fourth manufacturer of smartphones in Western Europe, a result that some time ago would have seemed unthinkable. Despite the overall market decline, Xiaomi has managed to maintain in the first quarter of the year sales in line with the previous year.
The research institute Strategy Analytics believes that much of the Xiaomi success depends on its excellent production strategy, with factories and manufacturers located throughout the world. Another factor would be the sales channels, given that Xiaomi is extremely active online. Do not relying so much in physical stores, the company has significantly mitigated the impact of the coronavirus, which forced consumers at home.
For Xiaomi now holds 10% of the smartphone market. Western Europe sees a podium made up of Samsung, Apple and Huawei. Xiaomi is in fourth place, but seems willing to take that third place taking advantage of the difficult moment of Huawei. At this point it will be interesting to see how the United States intend to behave with respect towards the ban of same Huawei. These days discussing the Huawei will to exclude the US from decisions about 5G networks, a decision that would have its why. What would Trump leading the administration to review its position on the ban.
Meanwhile, the forecast for the near future are not optimistic. The impact of the coronavirus on the smartphone market will in fact be consistent. Analysts expect a decline in sales in Europe by about 10% throughout 2020. The most pessimistic rather talk about impressive numbers, with a market contraction of between -27 and -47%.