“Quality and Honest Pricing” catapults Xiaomi Corp. to world prominence

BUSINESS
October 26, 2019

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BEIJING, CHINA - In a press conference here at Xiaomi (MI) Corp main office, the China-Asean Media tour delegation learned how the world-renowned smart phone manufacturer and internet company rose to prominence in international business and modern technology. Dr. Baoqiu Cui, Xiaomi Vice President  and chairman of Technical Committee commented that the secret of their company’s success and meteoric rise to prominence  is “Quality and Honest Pricing.” 
    
Also at hand to give presentations of their product lines and technology were the officers of Xiaomi, Christine Wong, VP for Internation Affairs; Yong He, VP for Public Affairs; and Yuou Chen, Public Affairs Manager for Southeast Asia.Xiaomi Corporation ).
    
It was only a year ago when Xiaomi  launched operations in 80 countries and regions. Now it is a front-runner in mobile phone markets, smart hardware and ICT platforms in more than 30 countries and regions, (they have 4 stores in the Philippines, including one at the SM Mall in Cagayan de Oro City) is a Chinese electronics company founded by Lei Jun in 2010 and headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile apps, laptops, bags, trimmers, earphones, MI Television, Shoes, fitness bands, and many other products.[ Ranked 468th, Xiaomi is the youngest company on Fortune Global 500 List for 2019. 
    
The company was co-founded by Lei Jun and six partners:  Lin Bin, vice president of the Google China Institute of Engineering;  Dr Zhou Guangping, senior director of the Motorola Beijing R&D center; Liu De, department head of industrial design at the Beijing Institute of Technology; Li Wanqiang, general manager of Kingsoft Dictionary; Wong Kong-Kat, principal development manager;  Hong Feng, senior product manager for Google China, on April 6, 2010.
    
Xiaomi released its first smartphone in August 2011 and rapidly gained market share in China to become the country's largest smartphone company in 2014.  At the start of second quarter of 2018, Xiaomi was the world's fourth-largest smartphone manufacturer,  leading in both the largest market, China, and the second-largest market, India.[9] Xiaomi later developed a wider range of consumer electronics, including a smart home (IoT) device ecosystem. 
    
Xiaomi has 15,000 employees in China, India, Malaysia, Singapore and is expanding to other countries including Indonesia, the Philippines, and South Africa.  According to Forbes magazine, Lei Jun, the founder and CEO, has an estimated net worth of US$12.5 billion.  He is China's 11th richest person and 118th in the world.  Xiaomi is the world's 4th most valuable technology start-up after receiving US$1.1 billion funding from investors, making Xiaomi's valuation more than US$46 billion.
    
In the first round of funding, institutional investors included Temasek Holdings, IDG Capital, Qiming Venture Partners and Qualcomm. 
    
On 16 August 2010, Xiaomi officially launched its first Android-based firmware MIUI. 
    
Xiaomi produces many products. Notably, it produces smartphones which run on their own version of Android MIUI firmware. Observers suggest that part of Xiaomi's rapid success rests on its ability to differentiate itself within the Android universe. The company has increased its range of products; its smartphones include: Mi Series, Mi Note Series(discontinued), Mi Max Series(discontinued), Mi Mix Series, Pocophone, Blackshark and the Redmi Series. As well as mobile phones, Xiaomi has started selling wearables, mobile accessories, and appliances such as television and speakers. In 2018 it was selling tablets, laptops, and smart-home devices.
    
Xiaomi operates on a vertically-integrated model that enables the company to sell hardware at cost or below in order to attract users and earn money by selling content.  Hugo Barra, a former Google executive who served Xiaomi's vice president from 2014 to 2017, characterized the organization as "an Internet and a software company much more than a hardware company".
    
Xiaomi also keeps its prices low or close to "bill-of-material" by keeping most of its products in the market longer, eighteen months rather than the six-month norm followed by many smartphone companies. This strategy allows Xiaomi to take advantage of price reductions in the prices of key components of its products. It enables the company to sell hardware with specifications comparable to high-end devices at a fraction of the cost. 
    
The company's version of the Android operating system, the MIUI skin, with its design, app marketplace, and functionalities, has established a community of users  who form a crucial part of Xiaomi's customer base and contribute to the company's drive for market awareness. This ecosystem is a massive source of revenue as indicated in 2015, when sales from the platform reached $750 million. 
    
The company focuses on India, the world's second-largest smartphone market.  Xiaomi announced on May 2, 2018, the launch of Mi Music and Mi Video to offer "value-added internet services" in India.  On March 22, 2017, Xiaomi announced that it planned to set up a second manufacturing unit in India in partnership with contract manufacturer Foxconn.  On August 7, 2018, Xiaomi announced on its blog that Holitech Technology Co. Ltd., Xiaomi's top supplier, would invest up to $200 million over the next three years to set up a major new plant in India. 
    
Recently Xiaomi started to sell more simple goods such as sunglasses, caps, pillows, glass lunchboxes, cups, filters, bags, backpacks, luggage, screwdrivers, and umbrellas. 
    
In 2019, the company announced launching more than 10 5G phones in 2020.


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