Xiaomi: An arch rival of IPhone in China

15,0000 smartphones have sold out in 2minutes and 56 seconds in December 28th,2012(Lei Jun,2013).It’s Xiaomi, a smartphone designed and made in China, has become an arch rival to IPhone 5C in China.

Xiaomi Inc , a privately owned company with design, produce and sell electronic stuffs, was built by Lei Jun and his Xiaomi group in Beijing, 2010(Xiaomi Inc, 2010). They wanted to produce a smartphone which cater on the consumers who are crazy about smartphones but can’t afford the high price of many international brands such as IPhone, Nokia and Samsung.

,Xiaomi Mi3,the would fastest Android OS smartphone with a 5-inch screen, NVIDIA Tegra 4 chip and 13 million picture element will be pushed into the market at 15th October(Xiaomi,2013). Surprisingly, its fixed price is only 1999RMB, as an IPhone 5C is cost 4299RMB in China (Jingdong Online Shop, 2013).

Xiaomi has successfully solved the problem which IPhone 5C wanted to solve—produce a high quality smartphone with cheap price. Many people wonder that whether Xiaomi can get profit from such a low price. As a matter of fact, Xiaomi Inc sold 7.19 million smartphones in 2012,and its net sales is 12.65 billion(tax included).

Xiaomi’s appearance brought a stream of fresh blood to the smartphone market, it shows that high quality does not equals to high price. It is no doubt that Xiaomi is a winner in the smartphone market of China.

 

1. Hands On With the Xiaomi Mi3 Smartphone, by Sascha Segan, September 11, 2013 02:00pm EST   http://www.pcmag.com/article2/0,2817,2424284,00.asp

2. Wikipedia http://en.wikipedia.org/wiki/Xiaomi

3. Baidu Baike,http://baike.baidu.com/link?url=SHFNTN_K0Dotv_0zc2iDszFIP7myPP3UE3BbTzyH3afIJKW3HZB88rhhB2gh7oAX_aCc90qH2xy-G61_-6soEa

4. Xiaomi Mi3,Xiaomi Keji http://www.xiaomi.com/mi3

Business Ethic Problem:The Poisonous Milk Powder

Sanlu, one of China’s biggest and most famous milk-production company, has went broke in 2009 because of a terrible milk powder safety problem which caused more than 70 one-year-old babies suffered from kidney stone. The crime culprits who caused this severely food-safety problem are farmers who sold their milk to Sanlu.To enhance the content of protein in milk, they put Melamine(C3H6N6),a uneatable chemical into milk to reach the protein line in 2008.

Because of this scandal, Sanlu,a brand valued 14.907billion, broke off its sharp expansion and being insolvency by paying fines and the sick babies’ hospital treatment expense.8 months later, this leader deer(Sanlu means three deer in Chinese) finally collapsed.

However, this ‘poisonous milk powder’ event is only a fuse lighter for Sanlu’s broken down. The mian problem is about this company’s ethic and management. At that time, stockholders and executives were only focus on the company’s expand and make profit. For the milk-production firms, control the milk source means everything. So that they took a lower standard of the milk’s quality they bought in and used second-class milk to produce baby milk powder.

 

Most important thing is that when the ‘poisonous milk power’ caused some babies illess, Sanlu chosen silence rather than take some action to redeem the company’s honor and told consumers the truth.In the end, Sanlu took itself into the depth of despair.

News link:http://baike.baidu.com/link?url=YwwszsW-UwmzCHAmSM4mvQXsAe0iniXamZIpn7TYguy48DNnvY3kMjqDOBABgByeQ-FGtn0GLlGP-1fuigHA6vVt0fUaxbBluz0gQIBOfS6QVTXppLFeUhmnadtKiuN7SONsbI5iwcaMhkc8iGyWLUyQOoJFuTHPJfHGDo8XWOGxUMYjjLyMtAl02CIXCUwR