In an effort to strengthen its presence in the Middle East, Xiaomi, the third-largest mobile phone vendor globally, has launched its largest store outside of China and India. The flagship store, located in Dubai Mall, spans over 610 square meters and is the company’s biggest outlet in the region. Xiaomi, which established its inaugural retail store in 2017, disclosed this information on Thursday.
“Our commitment to making quality technology accessible to everyone is reflected in our Dubai Mall store,” Arjun Batra, country manager of Xiaomi UAE, said.
Xiaomi rose through the ranks of the smartphone market by offering affordable devices with specifications that rival higher-priced models from the world’s biggest manufacturers, such as Apple and Samsung.
The company has consistently ranked third in terms of market share and units shipped over the past two years. In the fourth quarter of 2022, Xiaomi accounted for 11 per cent of the global market, according to Counterpoint Research. In that quarter, it shipped 33.2 million devices.
A sales peak of 52.5 million came in the second quarter of 2021, the data showed.
However, the company was not spared from the downturn that the industry experienced last year. Smartphone shipments for the full year 2022 dropped to 1.2 billion units, the lowest since 2013, Counterpoint said.
Chinese smartphone manufacturers — including Xiaomi, Oppo and Vivo — felt the pinch of Beijing’s domestic lockdowns that were enforced to temper the spread of Covid-19 for much of the year.
The curbs, considered some of the toughest globally, were in addition to global economic and geopolitical challenges, supply chain issues and a slowdown in consumer demand.
“Despite offering premium phones at aggressive margins, Chinese brands are yet to make headway in the premium market,” Counterpoint said.
“We expect the [global smartphone] market to remain under pressure until the end of the first half of 2023 and to start recovering thereafter.”
Smartphone sales in the Middle East, excluding Turkey, are projected to grow by 6 per cent to about 40.4 million units this year, a report from research firm Canalys found.
The smartphone market in Saudi Arabia, the Arab world’s biggest economy, is forecast to expand 9 per cent on the influx of foreign direct investment, while the UAE’s market is expected to grow by 6 per cent, on the back of a robust expansion in non-oil industries like real estate, tourism and trade, it said.
