Imitation game: Chinese firm Xiaomi offers a cheaper Apple
Chinese start-up Xiaomi pushed aside well-heeled rivals last year to become the world鈥檚 , thanks to quality devices that sell for half the price of many competitors鈥� models. The company, founded in 2010, last year within China, the world鈥檚 largest phone market. And based on a recent round of fundraising, Xiaomi is now worth $45 billion, well more than tech giants such as , , and .
How did Xiaomi secure such success in less than five years? In many ways, by aping Apple.
You could be forgiven for a Xiaomi phone or tablet for an Apple product. They share the iPhone鈥檚 and iPad鈥檚 elegant design, clean interface, and high-quality screens. But the connections run deeper.
The company adopted a similar naming convention 鈥� branding its iPad competitor as the . Until recently, Xiaomi's chief executive officer, Lei Jun, when he addressed large crowds, much like Apple co-founder Steve Jobs did. And just as Apple has a thriving music and app store, Xiaomi backs up its strong hardware with quality digital services.
But that鈥檚 where the similarities end. Unlike Apple, Xiaomi pushes sales through thin profit margins. While most Americans enjoy subsidized prices on smart phones, which they pay back through monthly fees over the course of a two-year contract, many Chinese shoppers pay the full price of a phone upfront. This means that an entry-level in China, while Xiaomi鈥檚 equivalent model, the Mi4, retails for around . The company on traditional advertising, opting instead on online flash sales that take advantage of social media.
Now, Xiaomi wants to go global, putting down roots in Singapore, India, Brazil, and, soon, the United States. Hugo Barra, a former Google executive who left to join Xiaomi as vice president of international operations, announced in February that the company will open an targeted at Americans. Watch first for its headphones, fitness trackers, and small digital cameras.
As Xiaomi grows, 鈥渢hey鈥檙e smart to try to get away from the constant comparisons,鈥� says Ryan Reith, research director for mobile devices at IDC in San Mateo, Calif., 鈥渆specially when they鈥檙e not that far behind the front runners.鈥�
[Editor notes: This article originally appeared in the April 13, 2015 issue of 海角大神 Weekly magazine.]
