Edition: English Asia Pacific Africa Europe | Español Français العربية Pусский | 中文简体 中文繁体
News Hour > News Video

Fastest growing smartphone maker Xiaomi at crossroads

Reporter: Xia Cheng 丨 CCTV.com

07-23-2014 13:13 BJT

One of China’s fastest growing I-T companies, Xiaomi, has unveiled its new smart phone Mi Four, along with its wearable product. Analysts say the Mi Four could be a make or break push for the company. CCTV's reporter Xia Cheng looks into the company’s new challenges and its ongoing global expansion.

Four years, five smartphones and a series of smart devices.

After taking a bite out of the profits of smartphone juggernaut Samsung, Xiaomi is at a crossroads on its mobile internet market roadmap.

Some critics say its new mi phone 4 unveiled on Tuesday is not different enough to compete with Samsung and Apple at the top of the market.

The company’s major driver of sales, the low-priced RedMi, is also facing challenges from competitors.

Behind Founder and CEO Lei Jun’s bullish outlook of 80 billion yuan in sales revenue this year, sales of Mi 3, which has been out for a year, have been disappointing compared with annual sales of Mi 2. The company’s smart TV products also failed to beat their major competitors in sales.

However, some say Xiaomi’s first wearable products, Mi Band, unboxed on Tuesday as well, could lift serious volumes with its 13-US-dollar price tag. But industry wise, it’s too early to call it a success.

And that suggests that the Beijing based company is on the right track. Lei Jun says the firm has signed deals with other electronics makers for connectivity with mi phone 4, a hint of Xiaomi’s push on the Internet of things.

There’s also its secret weapon, the MIUI operating system, with its sixth edition slated for release on August 16th, while many other Chinese mobile devices makers are lagging behind.

With strong products and solid fan base, Xiaomi secured the home market, which is a cash cow for Chinese mobile devices makers, but to boost its brand’s value, it has to add foreign markets into its eco-system.

Xiaomi launched its first sales day in India on Tuesday, hoping to change the local retail landscape.

Next, Xiaomi will be looking at Indonesia, Brazil and other [emerging?] markets.

Analysts say unlike Chinese automakers’ homecoming strategy after failures overseas, mobile device manufacturers may have easier access to foreign consumers.

Xiaomi has an aggressive market expansion push, planning to build up coverage of 14 global regions this year. But an IPO? Maybe not any time soon, as Vice President Hugo Barra says, the company wants to focus on products at the moment.

Follow us on

  • Please scan the QR Code to follow us on Instagram

  • Please scan the QR Code to follow us on Wechat

We Recommend

  • World Heritage China Part 29
  • Glamorous Indonesia Part 2
  • Along the Coast Part 41
  • Glamorous Indonesia Part 1
  • Dreams and the business reality
  • Philippines' beauty pageant obsession
  • China's love for basketball
  • Box office online
  • Jixi: Land of luminaries II