Xiaomi Rises Above Apple In Sales Numbers

Smart pricing and marketing strategy helps Xiaomi conquer the market..

Xiaomi is a privately owned Chinese electronics company headquartered in Beijing, China whose business entails designing, developing and selling smartphones, mobile apps, add-ons and consumer electronics.

Xiaomi launched in 2010, sold its first smartphone in 2011 and by 2013 sold 100,000 phones in less than 90 seconds.

Since it launched its first smartphone in Mainland China in August 2011, Xiaomi has gained considerable traction in the market and since then, diversified into producing other consumer electronics.

Reports state that they are now the third most successful smartphone maker in China overtaking Apple!

CEO of Xiaomi, Lei Jun has been compared to the likes of Steve Jobs, and is said to have a soft corner for Apple. He was quoted saying, “iPhone is still the best smartphone on the planet. For Xiaomi there’s a lot of space for learning and talent”.

Xiaomi’s business plan to sell their phones is very different from that of Apple.

Xiaomi sells their devices just above their own cost price, making up the difference with online sale volumes. They priced their first flagship smartphone (with similar specifications as the iPhone 4) at USD 324 (the iPhone 4 started at USD 800!).
Xiaomi introduced another low-end phone priced at USD 113, selling around 11 million units in the first quarter, making them the third largest sellers overtaking Apple in sheer Unit Sales numbers.

They have now set their eyes on emerging markets like India and Africa. The IDC states that the company is definitely out to disrupt everyone, with consumers expecting high-end phones at low prices. Huga Barra, VP, Xiaomi Global also said that the company plans to use the same pricing model for all foreign markets.

Companies like Samsung, ZTE and Huawei are already working to neutralize this threat with products of their own, across all their markets of interest, especially India.

The duo of Jun and Barra are likely to be unbeaten in up-and-coming markets ensuring that Xiaomi will achieve economies of scale that will launch an assault on all other market leaders.

Originally published at Chip-Monks.