If you are abreast with major developments in the telecommunications industry, you may have heard of a Chinese company called Xiaomi, one that made a high end smartphone last year that could only be ranked among the top high end superphones in the market. But if you have not heard of Xiaomi, or their Mi2 smartphone, that’s not your fault because the company has mainly been selling its devices within Asia and online. Xiaomi has recorded big success in selling high end smartphones at prices much cheaper than what other manufacturers like Samsung, Apple, HTC, Sony and LG are selling theirs for.
Xiaomi may be the biggest name when it comes to the smartphone market in East Asia and specifically China. Although the company is just 3 years old, it sold in excess of 7 million smartphone units in 2012 without an Ad budget and with no retail sales. This is a company that aims to prove to the world that not all electronic gadgets coming out of China are knock-offs or poor quality and it is eyeing the global market in the year 2013. At the moment, Xiaomi is one of the most successful phone manufacturers in China competing against some of the oldest names in the industry including Ainol, Lenovo, Huawei and ZTE.
Bin Lin, the founder and CEO of Xiaomi, explained that his company has rapidly grown since it sold its very first device in 2011 and he attributed this success to the company’s transparency policy. He says that Xiaomi tells its users everything regarding their gadgets – the processor, display and the LG batteries they use. Xiaomi sold its first smartphone in August 2011 and introduced the second a year later in August 2012. Although the company does not spend any cash on advertising, its smartphones often sell out within minutes of launch.
Xiaomi sold over 7 million handsets in 2012 that made it revenue of over $2 billion. The company has a queer marketing and pricing structure where it charges buyers only the cost of the components hence the reason their smartphones go for even less than $400 each. The company has decided to put focus on selling services and accessories of their popular smartphones and keep the costs low rather than make profit on the hardware.
Although Lin did not point out what the company strategy on conquering the world market is, it is likely that it has its eyes on the European and US markets. This means that it may not be long before we see high end Xiaomi smartphones sold unlocked for the price of a mid-range smartphone in our shops.