CHINA TOPIX

11/25/2024 12:55:37 am

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Xiaomi Postpones Further Market Expansion Until 2015

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(Photo : Reuters) Xiaomi, the number one smartphone maker in China, has announced an end to market expansion, at least until the start of 2015.

Xiaomi is postponing all further advancement into new markets until 2015 as the China-based company is looing to focus more on its business in India and Indonesia.

"Our focus is to add market by market, one at a time, and to focus on bringing all of our products to each of those markets before we add a new one," Xiaomi vice president of international Hugo Barra told Tech In Asia. "Earlier this year, we talked about wanting to be in 10 markets within 2014. We realized that it's a smarter thing to do to scale back a bit and put a ton of effort in India and Indonesia before expanding further.

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"By the end of this year, we will be in seven markets beyond mainland China. Our next market is Brazil some time in the first half of next year."

Barra did not go into detail about if the delay is due to a manufacturing difficulty. Xiaomi got a lot of criticism in India, due to not being able to have enough units ready for sale, when the product finally went on sale on Flipkart.

Xiaomi is considering factories in India and Indonesia, working with its OEM partner Foxconn to make this a possibility. Brazil could also be a center for production of Xiaomi phones in the next year, when Xiaomi moves to the South American country.

Thailand, Russia, Mexico, Iran, Turkey and other potential countries have been postponed till late 2015 and might even go into 2016. The North American launch, slated for 2015, will most likely be moved back to 2016.

Currently, only one or two of Xiaomi's smartphones ship outside of Mainland China. Redmi is the most popular phone, due to its price and availability, but the flagship Mi4 is still only available in China.

Analysts predict Xiaomi will come out throwing punches in 2015, with the potential to sell over 40 million smartphones in a quarter, similar stats to Apple. If Xiaomi enters the European and U.S. market as well, it could face up against Samsung.

The main issue with Xiaomi at the moment is a lot of the software and services available on its smartphones only works in China, or works better with Chinese citizens. The aesthetic might not appeal to U.S. or European buyers.

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