In August, Chinese company Xiaomi claimed second place in global monthly smartphone sales for the first time in three years, surpassing Apple, according to Counterpoint Research.

Samsung Electronics maintained the top spot.

Xiaomi's rise is attributed to Apple's typical seasonal decline as it prepares for new iPhone releases in October.

Xiaomi saw a 22% year-on-year growth in sales volume, making its achievement significant.

Market tracker Tarun Pathak noted Xiaomi’s success as indicative of stiff competition in the global smartphone market, especially as brands strive for differentiation through technology, design, and marketing strategies.

Despite previous supply chain issues, Xiaomi employed a 'leaner product strategy,' focusing on hero models per price band and expanding into new markets.

While Samsung and Apple compete with high-end smartphones and generative AI models, Huawei is also aggressively pursuing the foldable smartphone market, achieving a 27.5% global share in Q2 against Samsung's 16.4%.

Amid rising competition, Samsung is enhancing AI features across its smartphone lines.

Huawei's Mate XT tri-fold smartphone, launched at $2,800, saw over 6.3 million reservations on Vmall, contrasting with Apple's weaker iPhone 16 sales, which dropped 12.7% compared to the iPhone 15.

Huawei's gains in foldables are driven primarily by the Chinese market, where Q2 sales soared 102% on-year.