New Generation of the Smartphone is Born

Recently, a new smartphone has been on the headlines. Xiaomi Inc., a Chinese smartphone company found in 2010, has been making a tremendous revenue with extremely cheap smartphone. Its cheapest phone, Redmi 1S, costs about $150.

The Daily Telegraph states: “A table in the document showed that Xiaomi’s net profit last year rose 84 per cent to 3.46 billion yuan (US$566 million) from 1.88 billion yuan in 2012. Its revenue more than doubled to 27 billion yuan. Another table included a forecast of a 75 per cent net profit increase this year.”

On November 11th, while Canadians are mourning on Remembrance day, the Chinese are celebrating their “Singles'” day with Alibaba’s annual ‘shopathon’.  Just over 12 hours of the sale, Xiaomi has already collected over 1 billion RMB ($163 million) of revenue.

Xiaomi has climbed to the third largest smartphone makers in the world after Apple and Samsung. Xiaomi’s disruptive innovation has made a huge impact on the industry.  New predictions can be made on how the smartphone market will change in near future. Although Apple and Samsung are manufacturing much higher quality smartphone, Xiaomi can be a potential threat. Consumers are always looking to save more money. If Xiaomi’s phone is efficient and cheap, more and more people will put down their expensive iPhone’s.

References:

“Buy Xiaomi Redmi 1S | Buy Xiaomi Hongmi 1S | Redmi 1S Price.” XIAOMI MOBILE RETAIL SHOP. Web. 11 Nov. 2014. <http://www.xiaomishop.com/100-xiaomi-redmi-1s-quad-core-16ghz-1gb-8gb-47-inch-ips-8mp-camera-dual-sim-wcdma-version-smartphone-black.html>.

Jones, Dow. “Xiaomi Makes a Profit on Its Cheap Smartphones.” The Daily Telegraph. 6 Nov. 2014. Web. 11 Nov. 2014. <http://www.dailytelegraph.com.au/business/breaking-news/xiaomi-makes-a-profit-on-its-cheap-smartphones/story-fnn9c0gv-1227115278434?nk=b10245201f34ec2695d71791a5755407>.

Russell, Jon. “Xiaomi Clocks Record $163M Sales At Halfway Point Of China’s Singles’ Day Shopathon.” TechCrunch. 10 Nov. 2014. Web. 11 Nov. 2014. <http://techcrunch.com/2014/11/10/xiaomi-clocks-record-163m-sales-at-halfway-point-of-chinas-singles-day-shopathon/>.

Shu, Catherine. “Xiaomi Now The World’s Third Biggest Smartphone Maker, Says IDC.” TechCrunch. 29 Oct. 2014. Web. 11 Nov. 2014. <http://techcrunch.com/2014/10/29/xiaomi-now-the-worlds-third-biggest-smartphone-maker-says-idc/>.