In contradiction to Justin, Xiaomi has the potential to be a successful competitor outside of Asia.  Within the past year, Xiaomi sold over 7.2 million phones in Asia; this is equal to 5.7% of the iPhones sold globally.  The phone’s price is 50% less than the iPhone, making it very desirable.  Its great success in Asia demonstrates its ability to compete globally against companies such as Samsung and Apple.

Justin argues that Xiaomi cannot succeed in the Western and European market because it originated in Asia, it is not globally known, and it is too costly to distribute.  This argument can be contradicted as Samsung, which is now a global company, also originated from Asia.  Xiaomi is a young company and has not branched out beyond Asia; hence it is not a globally known and the fact that the Mi-3 can be sold for 43% of the iPhone will allow it some room to increase the price to allow for distribution costs.

Overall, Xiaomi is a very popular, young, rapid growing company that manufactures a product similar to the iPhone.   It currently only sells it products in Asia, however given it’s rapid growth and success; it can also be a successful competitor in the Global market.

https://www.youtube.com/watch?v=3v5sPFw2NPE

(2013, September 14). Taking a bite out of the Apple. The Economist. http://www.economist.com/news/business/21586344-xiaomi-often-described-chinas-answer-apple-actually-quite-different-taking-bite-out