We have several times reported about the impressive development of Xiaomi, the Chinese smartphone manufacturer. This time we may listen to its founder, the current Xiaomi CEO, Lei Jun. He explains the reasons of the company’s successes and emphasizes its unique characteristics.
7.4 million preorders of a budget Red Rice (Hongmi) phone prove that Xiaomi is a big player on the Chinese smartphone market. In the Q2 2013, it outclassed Apple, reaching the 5% of market share. It is still lower than big companies such as Samsung, Lenovo or Huawei, but Xiaomi entered the market no sooner than in 2011. By using the effective marketing tools, such as online preorders (usually the first batch sold out within minutes), Xiaomi managed to create media hype and is sometimes compared to the said Apple. But Lei Jun disagrees with that comparison.
“We’re actually an internet company” – says Lei Jun. He said that hardware they sell is only the carrier for MIUI software environment, which is not only the Android-based firmware, but also features a lot of modifications, apps, games and motifs. “Xiaomi and Apple are completely different things […] Xiaomi’s system can be changed by anyone, thousands of designers can create all functions and solutions.” Selling phones cheaply means in fact buying the market share – similarly to the Amazon selling Kindles on a very moderate price.
Therefore, Xiaomi’s further plans to expand may come real. From the company, which monthly revenue was on the level of $3 mln, reaching $21-24 mln is quite possible.