Despite the controversies surrounding its “malignant marketing strategies,” China’s Xiaomi has now become the third largest smartphone vendor in the world. Following Samsung’s market share of 25 percent and Apple’s share of 12 percent, Xiaomi is now Samsung and Apple’s biggest competitor in the smartphone market with a market share of 5.3 percent – this is extremely notable as Xiaomi only released their first smartphone three years ago in August 2011.
One of the key reasons for Xiaomi’s fast growth and success is the extremely affordable prices of its smartphones. The business makes profit on selling “services” to the customers as customers use the smartphone, rather than from the sale of the physical smartphone itself. Furthermore, by relying mostly on online retailers and social media instead of having physical retail stores and employees, Xiaomi cuts down its expenditures.
However, in order for the company to stop being referred to as “the Chinese Apple wannabe,” the company should strictly invest in building its own unique and original design and features that differentiate the company from its competitors. Instead of producing the MiPads in the exact same colors as the iPhone 5C series and having the CEO dressed in a black turtleneck and jeans like Steve Jobs, Xiaomi should promote itself in a new, trendy,”Xiaomi” way.
Will the smartphone market transform from the strict domination of Samsung and Apple to a three-way competition between Samsung, Apple, and Xiaomi? The thought of the new ideas and innovations that the three companies will present to compete with each other with in the upcoming years make my heart flutter. World War 3? I think so.
Sources:
http://www.computerworld.com/article/2840875/chinas-xiaomi-surges-to-become-worlds-third-largest-smartphone-vendor.html
http://www.cultofmac.com/291859/xiaomi-ios-7-ripoff/
http://www.centnews.com/Business/China-s-Xiaomi-Threatens-Samsung-and-Apple-Sales/S-2014-11-04/101820.html
Photos:
http://www.engadget.com/products/apple/iphone/5c/
http://www.embargozone.com/2014/05/15/xiaomi-the-company-that-sold-more-phones-than-apple-in-china-launched-its-first-tablet/