Lei Jun founded Xiaomi in 2010, as a software company and created MIUI ROM based on Google’s Android. The idea behind developing MIUI was to offer more functionalities and a better UI than Android…. In 2011, Xiaomi entered the hardware segment by launching the Mi One phone.
By the end of 2011, MIUI had 70 million users and Xiaomi had created 70 engineers. Today, Xiaomi has 700 engineers and about 200 hardware engineers in India. For most people, the most obvious explanation for Xiaomi’s phenomenal growth is its business model.
The company sets its product prices at a lower than that of its competitors, and competes on price alone. The operating margins have been unusually high, something unheard of in the $380 billion-a-year global smartphone industry, so much so that investors and media outlets have dubbed it the Apple of China. According to Lei Jun, the product price of its devices is key to the company’s success.
The Beginning of xiaomi
Lei Jun founded Xiaomi in December 2010, as a software company and created the MIUI ROM based on Google’s Android. The idea behind developing MIUI was to offer more functionalities and a better UI than Android. This new feature set was not considered by Google as Android was in its early days.
In 2011, Xiaomi entered the hardware segment by launching the Mi One phone, Xiaomi’s first hardware product. The Biggest Problem With Xiaomi Xiaomi failed to diversify their revenue from the beginning of their operations in 2012, something that was crucial for a company planning to become a multi-billion dollar business. What Made Xiaomi A Success? In 2013, Xiaomi launched the Redmi 1S phone, which sold for only 999 yuan (US $150) and became the first phone to sell below 1,000 yuan.
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Focusing On A Single Product
While other Chinese smartphone makers released multiple devices, Xiaomi focused on only one flagship product. Xiaomi also introduced a dual camera phone with the Mi 6. However, in 2016, Xiaomi shifted to launching multiple smartphones…. Xiaomi’s flagship for 2016 was the Mi Note Pro, which wasn’t launched in China.
It was a 6-inch phablet powered by a Snapdragon 821 processor, 4GB RAM and 64GB storage. The cameras include dual 12MP Sony sensors on the back, and an 8MP camera on the front. … Xiaomi switched its focus to bringing down the price of the Mi Note Pro and launched it in India…. According to IDC, in 2016 the company shipped 17.5 million smartphones in India, with 15% market share.
Though the Mi One was met with mixed reactions, the success of the Mi3, Redmi and other Mi devices pushed Xiaomi to become the largest OEM in China. With a market share of 35%, it sold over 15.3 million smartphones last year. That’s equivalent to over 600 million devices per year…. Last year, Xiaomi launched the Redmi Note and the Mi Mix and it soon rose to become China’s best-selling smartphone, while still maintaining the top spot in smartphone markets outside China.
Most Android smartphone manufacturers in China offer more specs at lower price tags, but Xiaomi focuses on design and offers more features. The Mi Mix, which has a giant screen, costs about $550, while the latest flagship from OnePlus X has identical specs but is priced about $300 higher.
Taking A Different Approach
In 2016, with limited capital and limited market penetration, Xiaomi’s board members decided to turn Xiaomi into a consumer electronics company with the sales goal to surpass $1 billion by the end of 2017. By the end of 2017, Xiaomi was the top smartphone vendor in India and South East Asia, the fourth-largest smartphone company in China, and the largest online-only company.
Xiaomi has won a legion of loyal fans in China, and has shown that a scrappy hardware company can compete in the high-end market in China and across Asia. Xiaomi’s price point-priced phones are a perfect example of how the company has taken the business model from software to hardware.
How Xiaomi Became One Of The Largest Mobile Phone Companies In The World
That was when Lei Jun realized that his company would need a different business model to survive. So he decided to adapt MIUI to the device, bringing Xiaomi one step closer to its goal of becoming a full-fledged hardware company. Today, Xiaomi is a global player and the top selling smartphone brand in India.
In 2011, Xiaomi entered the hardware segment by launching the Mi One phone. The Mi One’s design was unique and simple, but the hardware was underwhelming. It managed to be only the fourth smartphone to sell over 10 million units worldwide. However, the pressure was increasing. As much as Xiaomi was becoming an “it” brand, so were its competitors. In June 2012, Vivo launched the Vivo X10, followed by the Oppo Find 7 in October.
Xiaomi could be very profitable in the future, but it is not a wise investment now. Based on the current price, Xiaomi is in a dangerous position because of the lack of profitability in other segments.
However, after the release of the Mi2, Xiaomi went on to sell the phone at a price that was almost half of that of the competitors’ Mi series. This was the turning point for Xiaomi as the company started to focus on lowering prices and delivering better features than their competitors, such as the launch of the Redmi Note and Mi2s in 2014. In 2016, Xiaomi was ranked as one of the fastest growing companies in the world, recording an annual turnover of $12 billion in 2016 and making profit of $1.8 billion.
It became the largest smartphone company in the world in terms of market share by the end of 2016, surpassing Samsung and Apple…. In 2014, Xiaomi opened its first store in Beijing and continued to increase the sales of its phones in the China market. In 2015, Xiaomi entered India.