I was attracted by an article in Harvard Business Review, “Xiaomi, not Apple, is changing the Smartphone Industry” by Juan Sampere. Have you ever heard about Xiaomi? Have you ever seen its product? Personally, I believed this is only a Chinese company trying to gain domestic market share by taking advantage of Chinese regulatory (prevent foreign online services). But my belief has changed after I read about this company and this is actually a very smart strategy of Lei Jun, FOunder and CEO of Xiaomi bring this company to the current position after a very short time. Chinese customers prefer to use domestically produced products with “not very expensive” prices. This is not the first time a local smart phone company launch, there are about 3-4 Chinese firms holding major Smartphone market share in China, such as Lenovo, Huawei, Meizu, etc., however, Xiaomi has caught the world attention by their successful business model like no other.
The graph above was made in 2012. 2 years later, now 2014, Xiaomi captures 5% market share, increase 1.8 % from last year. Xiaomi even beats Samsung in China market. Xiaomi sold is 15 million smartphones this year, while Samsung dropped to 13.2 million sales from 15 million sales in 2013. Other local companies such as Chinese Lenovo, Huawei also decreased in sales.
Recently, Xiaomi has risen to 5th place in its share of global shipments, according to Strategy Analytics’ Woody Oh, could be the biggest achievement of this 4yrs old company. Even Xiaomi is claimed to copy Apple ideas and designs, Xiaomi Founder and CEO, Lei Jun states that Apple and Xiaomi are two totally different companies and one day people will understand that when they know more about Xiaomi and the company doesn’t want to be compared with Apple or be called “China’s Apple”.
Xiaomi is reaching Asia and Europe market with the affordable price products, unlike Apple’s core is premium products. Xiaomi has a little reputation in Australia, Europe and North America. This is predicted as a serious threat to giants such as Apple, Samsung, Sony and Google. Even Samsung remains the global smartphone leader with a 25.2% share of the market in Q2 of this year, followed by Apple with 11.9%, China’s Huawei with 6.8% and Lenovo with 5.4%, according to Forbes, Xiaomi seems to be growing fast in the very near future with their effective business model.
Please leave your comment below to share your thought if you have a Xiaomi Smartphone or Are you excited to try this product? Do you think this company could win some market shares in Australia?
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