Xiaomi Finally Invades the U.S.
Arthur Dominic Villasanta | | Feb 12, 2015 08:41 PM EST |
Xiaomi Redmi Note Prime is available for $128, Coolpad Note 3 is available for $135. Meizu M2 Note is priced around $135.
It was inevitable and that inevitability is here.
Xiaomi, Inc., China's largest smartphone maker but not even a blip in North America, will definitely set-up shop in the United States.
Invading Apple's home turf is a big move on Xiaomi's part. But the Chinese smartphone giant won't flood the United States with its Made in China smartphones. It plans on starting very small in the world's biggest mobile market in dollar terms.
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Surprisingly, Xiaomi will introduce itself to the U.S. buying public by first selling earphones smart wristbands and other accessories online. Xiaomi's successful Mi smartphones will be marketed later on.
Xiaomi is the world's 3rd largest smartphone maker and sold over 60 million smartphones in 2014. It only began making its first smartphones in August 2011 and in 2014 was named the world's most valuable technology start-up after it received US$1.1 billion funding from investors.
Tech pundits are curious about Xiaomi's potential to do well in the U.S. that's dominated by Apple and its iconic iPhone. Xiaomi will also have to contend with fierce competition from telecoms carriers that control phone sales. The U.S. will be Xiaomi's toughest market yet.
Xiaomi co-founder and President Lin Bin said Xiaomi will launch its first online sales site, Mi.com, in the second quarter. It will sell items direct to American consumers.
Xiaomi's initial aim in the U.S. will be to build its brand and engage American consumers. The net result of these efforts will be a loyal community of users that will buy Xiaomi. This community building strategy worked in China and India, two of the world's largest phone markets.
The Xiaomi playbook will see it interact with users on social media and sponsor fan events en route to getting to better know the preferences of American buyers.
Xiaomi is temporarily holding-off on selling its smartphones and tablets because the carrier-sales and phone subsidy structure in the U.S. negates its low cost advantage. It also seems intent on tailor-fitting its MIUI Android-based operating systems for the U.S.
Xiaomi is valued at over US$46 billion.
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