Xiaomi – History and Strategy
In our previous article, we introduced you all to the rising new star of the tech world, Xiaomi. In case you missed it, Xiaomi is a Chinese company, that has fast become one of the major players in Consumer Electronics in China, one of the World’s largest markets. Xiaomi has recently started expanding to several other emerging economics including Malaysia, Singapore, Hong Kong, and India. In this second piece of our 3-article series on Xiaomi, we discuss about the History and Strategy of this up and coming name in the Tech world.
After having started its operations with the launch of an Android-based firmware, the MIUI, in August 2010, the company followed with its first smartphone, the Mi1, about an year later, running its own MIUI firmware. MIUI, while based on Android, had several noticeable resemblances with both, Samsung’s TouchWiz as well as Apple’s iOS. Since then, Xiaomi has followed with a new variant of the ‘Mi’ series of smartphones every year.
In the September of 2013, Xiaomi came out with its Mi3. Powered by a Snapdragon 800 SoC, running a Krait 400 quad-core CPU clocked at 2.36GHz and an Adreno 330 GPU, accompanied with 2GB of RAM, the Mi3 stood right beside the flagships of the time, i.e. the LG G2 and the Nexus 5, and above the Samsung Galaxy S4 and the HTC One M7. Basically, when it came out, the phone was the most powerful Android on the market. A variant powered by an NVIDIA Tegra 4 chipset was also made available. Within a month of the Mi3’s release, Xiaomi was on the Number 5 position in the tally of most used smartphone brands in China, one giant accomplishment for a company so young.
The strategy that makes Xiaomi so successful is its offering of bleeding-edge hardware at dirt-cheap prices. The company almost literally prices the phone at half the rate of phones with equivalent specs. So far, this strategy has proven to be quite successful; not only has this worked wonders for Xiaomi in China, but the model has so far held strong in all the markets the company dipped into. When in 2014, the Mi3 was launched in Singapore, all batches were sold out in all of two minutes. Xiaomi later expanded to Malaysia, Phillipines, and India, and is in the pipeline to tap into Indonesia, Thailand, Russia, Turkey, Brazil, and Mexico; some of the World’s biggest emerging economies, where a large portion of consumers want the bleeding edge in tech, but still operate on a strict and low budget.
To cut it short, Xiaomi is a young brand of just 5 years of age, and is already making waves in countries where it’s available; its success is to be primarily attributed to its offering of amazingly great specs at amazingly low prices. In our next article, we have a look at Xiaomi’s expansion in India. Meanwhile, we’d love to hear from you on your views about Xiaomi. Do you own a Xiaomi device? If you do, make sure to drop in about your experiences in the Comments’ Section below.