Smartphone Showdown In Q2 Produced A New No. 2 After Samsung, And It's Not Apple

Apple Inc. (AAPL) shares have picked up momentum, largely due to positive expectations concerning its iPhone.

Data released by market research firm Canalys, however, shows that Cupertino has ceded market share to its Chinese rival Xiaomi Corporation XIACF.

Overall Market Expands:  Global shipments of smartphones rose 12% year-over-year, according to preliminary estimates by Canalys.

The firm attributes the strength to the coronavirus vaccine rollout and a "new normal" taking shape.

The second-quarter growth is slower than the 27% increase in shipments the firm estimated for the first quarter. 

Samsung Holds Pole Position: South Korea's Samsung was the market leader in terms of smartphone sales, with a 19% share of the total market. However, the company's year-over-year growth slowed from 28% in the first quarter to 15%, Canalys said. 

Related Link: Apple Shares Hit Record High: What The Street Is Saying

Xiaomi Pips Apple To Second Spot: China's Xiaomi took the second place for the first time by capturing a 17% share of the overall market. More importantly, it saw astounding 83% growth.

The Chinese company is winning with its price competitive offerings, Canalys said.

The firm noted that the average selling price of Xiaomi's phones is around 40% and 75% cheaper than phones from Samsung and Apple, respectively.

Xiaomi is also making inroads globally, according to Canalys.

Apple's market share slipped from 15% in the previous quarter to 14% in the second quarter. The growth decelerated sharply from 41% to 1%.

Related Link: Apple's iPhone Sees Favorable Mix Shift In Q3, Retail Store Sales Improve: Report