Xiaomi Growth

A New Beginning

Samantha Jonas-Rongo

They are targeting these markets with large populations, weak telecom carriers and a developed e-commerce infrastructure. Those countries all have large populations that have not yet bought their first smartphone…..Samantha Jonas-Rongo

There are already a lot of speculations regarding the upcoming iPhone 7. However, Apple is still hoping to sell a few millions of iPhone 6 units until they will release their next iPhone. However, the analysts are already gathering information about the upcoming iPhone that will be released in 2015. While we continue battling the war of Samsung V. Apple, that battle is old news in China.

Beyond our iPhone and Samsung frenzies, a new company may be making its way towards us in the United States soon. Not only is Xiaomi a new techno trend, it is making its way as the next global phenomena in the smart phone world. They are focused on not only having a successful business venture, they are working towards making their mark and cementing their place as one of the most powerful phone makers in the world.

Founded in 2010, founders Lei Jun, and former Google executive, Lin Bin began their success story as a start-up to sell smart phones at cheaper prices online. They were essentially late in the game with their first hand set being released around the same time the iPhone 4S was brought to stores.

After an intelligent social media strategy and successful launch, Xiaomi became well popular amongst the young and trendy Chinese population. In 2015, an estimated 500 million smartphones will be sold in China. According to the Research Firm IDC, that total is more than three times as many as those sold in the United States. Even though they aren’t as well-known as its largest western rivals, Xiaomi still successfully reached sales of 12.5 billion in the first 6 months of 2014.

Xiaomi’s international sales have already begun, but next year will reflect whether Xiaomi can continue to rise beyond China. Being that they do not have much of a patent portfolio, they are vulnerable to lawsuits from their competitors.

To recreate their Chinese success, Mr. Lei and Mr. Lin are looking to use e-commerce networks to sell cheap, high-quality phones to markets like the United States and Europe, and developing countries such as Brazil and India. They are targeting these markets with large populations, weak telecom carriers and a developed e-commerce infrastructure. Those countries all have large populations that have not yet bought their first smartphone. Based upon Xiaomi being these countries first telephone providers, they have an extreme chance at global success in the smart phone race.

Mr. Lin made a point that the developed countries with strict controlled carrier networks are not in his top five selected locations to do business. He has placed China as his potential number one clientage, India two, Indonesia 3, then hopefully follow with both Brazil and Russia.

Besides the money made on phone sales, Xiaomi plans to increase its profitability by selling services like entertainment and apps. Business has also increased for Xiaomi after it introduced products such as a smart television, fitness band and tablet.

Samantha Jonas-Rongo

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