Xiaomi has become the world’s number two smartphone maker for the first time ever, dropping Apple to third place.

Xiaomi is a Chinese smartphone manufacturer, with a strong overseas presence. As the smartphone market rebounded from the pandemic, Xiaomi was well-poised to increase its market share.

According to analysis firm Canalys, Samsung retained the top spot with a 19% share and 15% growth. Apple dropped to third place with a 14% share and 1% growth. Xiaomi, in contrast, had a 17% share but a whopping 83% growth. Oppo and Vivo rounded out the top five.

“Xiaomi is growing its overseas business rapidly,” said Canalys Research Manager Ben Stanton. “For example, its shipments increased more than 300% in Latin America, 150% Africa and 50% in Western Europe. And as it grows, it evolves. It is now transforming its business model from challenger to incumbent, with initiatives such as channel partner consolidation and more careful management of older stock in the open market.”

Much of Xiaomi’s success has been because of its lower price point, coming in significantly cheaper than either Samsung or Apple. Nonetheless, the company is clearly gunning to take the top spot from Samsung.

“It is still largely skewed toward the mass market, however, and compared with Samsung and Apple, its average selling price is around 40% and 75% cheaper respectively,” Stanton continues. “So a major priority for Xiaomi this year is to grow sales of its high-end devices, such as the Mi 11 Ultra. But it will be a tough battle, with Oppo and Vivo sharing the same objective, and both willing to spend big on above-the-line marketing to build their brands in a way that Xiaomi is not. All vendors are fighting hard to secure component supply amid global shortages, but Xiaomi already has its sights set on the next prize: displacing Samsung to become the world’s largest vendor