why xiaomi is called apple of china

Xiaomi Communications Co., Ltd. (/ ˈ ʃ aʊ m iː /; Chinese: 小米) is a Chinese multinational electronics company founded in April 2010 and headquartered in Beijing.Xiaomi makes and invests in smartphones, mobile apps, laptops, home appliances, bags, shoes, consumer electronics, and many other products. Looking at the revenue graph above, a few things stand out — smartphones make up the bulk of revenue, but IoT and Internet Services are growing quickly. I went through their prospectus and below are some of the things that stood out on their business model, financials and strategy. Xiaomi is a mobile internet company, as well as a … During its initial launch, Xiaomi sold about 100,000 devices in mere 4.2 seconds. Our answer is that users have always expected amazing products at honest prices. Their mission is to build amazing products with honest prices to let everyone in the world enjoy a better life through innovative technology. In some ways, they view their phones and other hardware as a source of users¹ into the Xiaomi ecosystem, which they will then monetize through services (and also through investments in other companies which they allow into the ecosystem). Just how accurate is that? Some say Xiaomi is China’s Apple. Chinese tech giant, Xiaomi has often been dubbed, “the Apple of China” — due to its similarities with the i-Phone maker in terms of its sleek product design, or … The last bit left is to look at operating costs. Xiaomi, which was founded by a group of 8 engineers and designers in April of 2010, is a Chinese internet company which manufactures smartphones and other electronics. Their hardware strategy is much closer to Amazon or even Google, where the devices are in some ways just an endpoint to the ecosystem rather than a source of profits. That’s why Xiaomi is most successful in places like China and India. Xiaomi can be viewed as having three main business segments — smartphones, IoT and other products, and internet services. These include Mi Store, Mi Browser, Mi Music and Mi Video. Lei Jun is the founder and CEo of a firm called Xiaomi which the Chinese media have nicknamed the “Apple of the East." They now have offline channels as well, but they’ve made sure too not reduce their efficiency while increasing accessibility. Evaluation of about 45 billion dollars Xiaomi continues to grow with the much famous nickname, The Apple of China. So in China MIUI works with: (1) Xiaomi's own services, including contacts, calendar, SMS, notes, photo album, etc., very similar to Apple and Google services; and (2) Xiaomi's own app/content store called Mi Market. It also has a “cool factor” about it, and a very loyal fanbase. It comes from a place that is entreating the ecosystem to support local domestic brands. At last, while the buzz about Xiaomi continues it still manages to be the China’s biggest producer of smartphones and world’s 8th biggest producer of smartphones thus making it tough for the others to compete in the market. In my mind, Xiaomi is more than a smartphone company. In 2017, their self-operated Mi Home stores generated the second highest average sales per square meter amongst retail store chains globally. Xiaomi Inc. (小米) is a mobile internet company founded by Lei Jun and seven co-founders in 2010. I see a lot of potential room for growth for Xiaomi globally. After creating an image in its home, Xiaomi partnered up with Mobility, a wireless cell phone distributor, to sell its devices in countries like United States, United Kingdom, Australia, and New Zealand. On being called the Apple of China The reason why Xiaomi is known as the Apple of China is because both companies are hugely innovative. You can find me on twitter (@tanayj) or substack: https://tanay.substack.com/, A Change in Leadership Doesn’t Equate a Change in Policy, Apple Card seen bolstering iPhone user loyalty, How 5 Small Businesses Reinvented Themselves During Covid, Amazon vs. They view their as a source of users into their ecosystem which they hope to monetize via services. 'Xiaomi is the Apple of China.' Today, MiUI as it is known is the default OS that powers Xiaomi phones and is tightly integrated with their hardware. Lei is fast becoming one of China's most celebrated and famous entrepreneurs. The mobile OS aside, Xiaomi has developed a range of mobile apps which are extremely popular. In addition, Xiaomi is a formidable player in the IoT space. So how much money did they make from this? The beta OS is updated every week, and the avid fans provide feedback/feature requests and spot bugs which are often fixed by the next release the following week. Meanwhile, Xiaomi’s strategy is to make their phones and other hardware as accessible as possible for the cheapest price possible. The Chinese handset maker priced Mi 3 at Rs 13,999. The craze caught up with the people and started to drive them crazy about the software that Mi was providing. But in reality, even prior to having their own hardware, they developed a mobile OS built on Android which could be side loaded onto Android phone. These were the main factors making Xiaomi … Xiaomi: It's China's Apple, though you've probably never heard of it Western brands scoff that Chinese mobile manufacturer Xiaomi just copies them, but Charles Arthur sees genuine innovation Xiaomi’s MIUI is eerily, similar to iOS. It has been able to compete well in these markets not just on price, but also on the quality of its products and user-experience. One of the things that Apple and Samsung have in common is a fear of emerging super-brands from China, and none is more fearsome than Xiaomi. In fact, they’ve taken a pledge to never make more than 5% net margins from their hardware products. But the philosophy of Apple and Xiaomi are very different. Xiaomi isn’t just another Chinese mobile company, it is the most valuable mobile company in China commonly referred to as the Apple of China.It successfully took Apple’s place in China by producing well designed, quality Android devices and took the low end market from Samsung by bringing the price even lower than expected. In the Year 2011, Xiaomi launched its flagship line up phone with custom-built Android Firmware UI called MiUI which similarly resembling the UI of Samsung and Apple. You may or may not heard this comparison before, but you definitely heard about the biggest news of the day - Google’s head of Android product management Hugo Barra will join the Chinese phone maker Xiaomi.Ironically enough, using this metaphor, we could say that Google's device head arrives to China's Apple. They manage an ecosystem of over 90 companies which produce additional smart hardware and lifestyle products. Xiaomi, which was founded by a group of 8 engineers and designers in April of 2010, is a Chinese internet company which manufactures smartphones and other electronics. True to their word, Xiaomi is run pretty damn efficiently. And let’s not forget about their investments — over 210 investments in a wide variety of companies the gains on which which have contributed to over half their operating profit. It has entered over 70 countries and is the number one in India in terms of smartphone market share and among the top 5 smartphone companies in 15 countries. Though Xiaomi makes most of its revenue from hardware, they don’t view themselves as just a hardware company, but rather as an innovation-driven internet company. While Apple does have a growing services business, it’s fair to say that the main way Apple makes its profits is through its hardware, which tend to have gross margins of 60%. MIUI has over 190M MAU which use it for 4.5 hours/day on average. Advertising accounts for 55% of the revenue in the segment, with Value added services accounting for the rest. In other words, Xiaomi has its hardcore fans — as Apple did long before it became the world's largest tech company. Even the name, Xiaomi, is a nationalist reference. That company is called Xiaomi, and it is often referred to as the “Apple of China” because a lot of its success comes from mimicking Apple’s marketing strategy. Their mission is … It was in the last year of this decade when he finally decided to start up his firm which would produce custom ROMs for android devices initially, making them do things that they didn’t usually do. But in terms of its business strategy, it diverges from Apple quite a bit. Lei Jun himself is also increasingly being called the "Steve Jobs of China" - and not just for his dress sense and presentational style! And like the Sequoia of China. In 2017, Xiaomi made over RMB30 billion globally (up over 200% from 2016) which represented almost 30% of their revenue. Xiaomi is frequently dubbed the “Apple of … The fever of Xiaomi has never left India since then, hence making it a sensation worldwide. As one might guess given Xiaomi’s strategy discussed above, the hardware is pretty low margins. Why Xiaomi is killing its rivals in China Xiaomi's robust sales in China are also fueled by two other factors -- national pride and perceived price gouging by foreign companies. A quote from Little Rice by Clay Shirky which helps illustrate the scale of their direct online sales model: “[Xiaomi] has become the third largest ecommerce firm [in China] just selling its own products, after the general marketplace sites Alibaba and JD.com, and ahead of Amazon.cn”. Together, they have over 100M connected devices, making them the largest IoT platform in the world. So there you have it. Lei Jun also popularly known as Steve Jobs of China worked for King-soft in the early years of his career. In 2013, Xiaomi grew into China’s largest e-commerce company with its e-commerce platform Mi Market.By 2014, the company had grown into the world’s fourth-largest consumer electronics company. They make products for elites who would like to show them off. Lin was previously worked at Microsoft, before becoming VP of the Google China … As Xiaomi continues to progress, we ask ourselves: what has remained constant in the ever- changing business world? They blatantly copy phone design from another company, especially the iPhone. Xiaomi’s “triathlon” business model combines three things — innovative hardware, new retail and internet services. Xiaomi and MiUI have attracted a large fan base, who provide feedback and inform the future product development of the OS. But also like the Amazon of China. First, it would eliminate a competitor in the world’s largest and fast growing marke t, … Xiaomi is often referred to the “Apple of China”. We are absolutely not Apple in China. In the latter country, it is by far the most successful smartphone brand, easily beating huge rivals such as Samsung and Apple. Here are two reasons why the purchase of Xiaomi by Apple would make sense. So perhaps Xiaomi is also like a VC fund, and a very good one at that. Xiaomi is sometimes called the Apple of China, and some have put down the American tech giant's lack of success in the country down to Xiaomi's popularity. So now we’re in a good position to answer the question posed in the title — is Xiaomi the Apple of China? The Business Case for Supporting Low-Income Women. It has made over 210 investments including the number one powerbank, electric scooter and air purifier companies globally, and they also own sizable stakes in gaming, virtual reality and IoT hardware companies. Most people think that Xiaomi began by selling phones. (TBD). Or maybe Xiaomi is just Xiaomi — a unique entity both in China and beyond. The New York Times article In China, an Empire Built by Aping Apple is almost a year old, and it makes some debatable claims, but it shows a popular perception of Xiaomi in the States. Xiaomi was founded only four years ago, in April 2010, by eight partners, including Jun Lei, CEO, and Bin Lin, President. All rights reserved. Lei was an early employee at Kingsoft, a Microsoft-esque software company in China, and led the company as CEO to a successful IPO in the Hong Kong stock exchange, where it has a market cap of about $3.6B. It is why Xiaomi is called the iPhone of china. Two ways — advertising and value added services. To better answer this question, lets first understand Xiaomi. Xiaomi services include a cloud storage/syncing service called Mi Cloud. Xiaomi Apple of China and India – Xiaomi Corporation, a multi-billion dollar Chinese smartphone maker headquartered in Beijing, China. And it has definitely innovated in how it sell their devices too — from their online channel to their Mi Home Stores just like Apple did with their Apple Stores. The below excerpt from Lei Jun’s letter struck me as very similar to Jeff Bezos’s belief about working hard to charge customers less and focusing on things that don’t change. At the beginning of its establishment, Xiaomi focused on technology, building good products, and focusing on user experience. It led to the development of their first android firmware known as MIUI in 2011. One could say this isn’t really a part of their core operations, but the fact remains that is a key part of Xiaomi’s strategy, and has been paying off for them. Xiaomi is marketing Mi MIX as a concept device (like Apple … How do they monetize these services, you might wonder? Growing exponentially throughout the year, Xiaomi finally entered India through the online shopping website Flipkart which helped them to distribute their devices nationwide. And that is exactly what we find. Aggregate gross margins are at 13%. Copyright Qries 2018. While commentators rush to call the Beijing-based organization "The Apple of China", Xiaomi likes to contrast itself with Amazon; Xiaomi makes ground-breaking equipment which it sells and depends on administration and substance to make up a greater part of its income. Overall, this means that while the revenue split is 90% hardware and 10% internet services, the gross profit is 60% hardware and 40% internet services. "Xiaomi is such a small company, they are mostly focused on user experience." Xiaomi produces hardware ranging from smartphones to laptops to smart TVs to smart speakers. Xiaomi is better known globally as China's answer to Apple Inc, an image that billionaire Lei Jun has fostered since he founded the company in 2011 by dressing in … It’s worth discussing Xiaomi’s global ambitions, particularly as it has been of the more successful Chinese technology companies in going global. Additionally, they use their online channels to also help partners sell. They are number one in both China and India in terms of online sales. The Book Industry: The War That Never Was. Xiaomi refers to the seamless integration of offline and online channels through technology as “New Retail”. Xiaomi Ceo - Lei Jun Moreover, they copy the software UI too. ¹ That they acquire their customers at a profit then while most companies face large customer acquisition costs is in some sense pretty amazing. A couple of years later, Xiaomi started facing patent sue for its designs and user interface which slowed down the company’s run towards the ultimate glory and making them accept that they grew way too fast than the others. This eliminates middleman and minimizes costs and in turn keep prices low. Xiaomi started off selling their phones via a direct online sales channel. One important point to note is while they do make a bulk of their revenue today from hardware, they sell the hardware as close to cost as possible. With the smartphone market starting to recover from the coronavirus crisis, Chinese producer Xiaomi has made history by beating the iconic Apple iPhone at its own game. On the hardware side, even if they don’t compete with Apple and Samsung in every market, I can see them competing in the IoT space and in other hardware products (think powerbanks, electric scooters and so on). Per their prospectus: they have 38 apps with more than 10 million MAUs and 18 apps with more than 50 million MAUs as of March 2018. What Are The Details On The Xiaomi Mi MIX? In 2015 and 2016, the gain on the investments were almost $2.5B RMB each, and in 2017 they were $6.4B RMB. Evaluation of about 45 billion dollars Xiaomi continues to grow with the much famous nickname, The Apple of China. In addition, there was a drop in smartphone sales in 2016, but Xiaomi has been able to turn that around in 2017, which is pretty impressive. Xiaomi is most famous for its flagship Android phone line called the MiPhone and its founder and CEO Lei Jun, an extroverted character who has been called "China's Steve Jobs." If the net margin exceeds 5%, we will return the excess to our users.” — Xiaomi’s Chairman Lei Jun. Founded in early 2010 by Lei Jun (current CEO and owner) along with his 8 like-minded teammates, Xiaomi is treading forth to beat the leaders and the giants of the cell phone arena. S&M, G&A and R&D are just a combined 7–9% of revenue, meaning that Xiaomi has a positive operating margin of 5% on its core business. A mass of people started believing that Xiaomi was copying its initial ideas from Apple, hence giving it its most popular nickname, The Apple of China. Note that I said core business, because if you look at Xiaomi’s own financials, they also have another source of profit which is pretty sizable — gains from fair value changes on investments. It was six years later that he became a success story of the nation when he was signed up as the CEO of the company. Xiaomi is set to launch one of the most anticipated IPOs of the year in Hong Kong within the next few weeks, with numerous sources touting an expected valuation of $100 billion USD that would make it the biggest first-time listing anywhere in the world since 2014.. Because of its strategy, Xiaomi has often been dubbed the "Apple of China." Xiaomi is like the Apple of China. Finally, entering the world of smartphones in the year 2011 with its Mi1 and Mi2 devices that Xiaomi offered at very cheap prices but with good specifications, it created a buzz around the nation. In the design category, Xiaomi shows no innovation. “At this point, I would like to pledge to our existing and potential users: starting in 2018, Xiaomi’s hardware businesses’ overall net profit margin will not exceed 5% per year. How much money does Xiaomi make? Why businesses need to invest in developing their Collaborative Advantage. Value added services involves taking a share of the revenue generated on things such as in-app purchases, particularly from gaming, and also other subscription revenue from some apps such as Mi Music and Mi Video. For example, in each of India, Indonesia and Russia, on our smartphones, our Mi Music app ranked number one in the music category, in terms of MAU in March 2018, our Mi Browser app ranked number two in the browser category and our Mi Video app ranked number two in the video category. On the smartphone side, for which they are most well-known, they are the fourth largest vendor in the world behind Samsung, Apple and Huawei. Known as the 'Apple' of China, Xiaomi entered the Indian market on July 15 2014 with an exclusive sales tie-up with Flipkart for smartphone Mi 3. Introduction: Founded in early 2010 by Lei Jun (current CEO and owner) along with his 8 like-minded teammates, Xiaomi is treading forth to beat the … And people actually did that, because it was faster and a better user experience than Android at the time. Later, in 2013, Xiaomi launched its smart TV followed by their new Mi3 and Mi4. With its fresh new designs and super cheap prices, world’s 8th biggest cell phone producer Xiaomi continues to climb up the ladder at a mind-blowing speed. With that, it took a hit where they realized that their focus has somehow shifted. Adding this back to their operating margins more than doubles the operating margin from 4.8% to 10.4%! Internet services is a pretty high margin business — 60%+, while the two hardware segments are at ~10% gross margins. Xiaomi is called the “Apple Of China” as a compliment and also as an insult. However, an internet company with ~200M MAU isn’t really worth $80-100B by itself…, Curious about technology, economics, and business. Founded by serial entrepreneur Lei Jun in 2010 and headquartered in Beijing, Xiaomi announced its first smartphone in 2011. Xiaomi makes money from sales of its devices and services. "Apple has the capability and resources to look at innovation from all different angles," Peng said. Lei saw that the first decade of the 21st century has changed the world with new technologies and he felt his heart transcend toward the era of smartphones. The Company was founded by Lei Jun and Six other partners in 2010. These investments are generally passive equity stakes in companies that develop products related in some way to the Xiaomi ecosystem and include consumer goods companies, IoT companies, and so on. Most of the Xiaomi phone design is not unique. On the services side, today they primarily make their money in China but have a sizable untapped user base in India and Indonesia as evident from the excerpt below which presents a good growth opportunity. Now, the so-called Apple of China is … At 44, Lei is the billionaire CEO, founder, and public face of Xiaomi, one of the fastest-growing hardware companies in China. Sure, Xiaomi is like Apple in some ways — it makes its own hardware and software which is tightly integrated and high quality. Essentially their philosophy is as follows: Each of these is worth going deeper into.
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