Xiaomi plans to beat Samsung to become No 1 smartphone brand in three years, but analysts say it faces hurdles

Beijing-based Xiaomi faces multiple hurdles in pursuit of its goal to dethrone Samsung Electronics as the world’s largest smartphone vendor within three years, as US-China geopolitical tensions and cutthroat competition in the industry threaten its ability to target affluent Western consumers, according to analysts.

Lei Jun, the founder and CEO of the Chinese brand, announced the ambitious plan in his speech on Tuesday night, when the company launched several new products including its flagship Mi Mix 4, the first commercially available phone with a front-facing camera under the display.

Xiaomi’s goal is the same as that of its domestic rival Huawei Technologies Co just a few years ago, when the telecoms equipment maker sought to become the world’s largest smartphone brand by this year. Huawei has since been saddled with mounting sanctions from Washington, preventing it from acquiring advanced chips and damaging its smartphone operations, which opened up new opportunities for other Chinese brands.

As Xiaomi has pursued the high-end handset market, it has seen some success. Last year, it supplanted Huawei as the world’s leading Chinese smartphone brand. In the second quarter, the 11-year-old company also topped Apple to become the world’s second-largest smartphone vendor with 17 per cent market share, according to research firm Canalys.