With the modern era many things are changing in fact if we say a technology revolution is rising will not be wrong. In China, the smartphone clash used to be Samsung versus Apple, but the things are changing now. For quiet sometime a Chinese company, Xiaomi, grabbed the No. 1 position in China’s economic market and became the world’s third-largest phone maker in the process. This is a big change in the smartphone market.
Originally it was founded in 2010 as a lean start-up to sell smartly deliberate phones at cheap prices over the Internet; Xiaomi was definitely late to the game. As these sets were coming in the market around the time of the iPhone 4S.
But an ingenious social media policy and a corporate plan that highlighted marketing services that work on the phone helped Xiaomi shape frantic sustenance from young and stylish Chinese.
With people in China probable to buy 500 million smartphones in 2015 more than three times as many as will be retailed in the United States, rendering to the research firm IDC. Xiaomi is composed to strengthen its place as one of the most influential phone makers in the world’s most significant market.
Though Xiaomi already sells internationally, next year will be the true test of whether it can continue its rise beyond China. Shunning markets like the United States and Europe, Mr. Lei and Mr. Lin are looking at huge developing countries like Brazil and India. And they hope to use e-commerce networks to sell cheap, high-quality phones and recreate their Chinese success.
“Selling the phone to users is a good start, but it’s really not the end of the business,” Mr. Lin said in a recent interview. “It’s actually the beginning of the business. It’s after the user buys the phone and starts using the phone that will generate extra value, to users and to us.”
But there are substantial challenges. Xiaomi does not yet have abundant of a patent portfolio, parting it susceptible to lawsuits from opponents.A new fund-raising plump could rocket Xiaomi value to $30 billion to $40 billion, above that of its improved known competing Lenovo, rendering to a person familiar with the process.
And investment bankers are already courting the company ahead of a possible preliminary public contribution of stock, which establishment insiders say is perhaps years off.
“Bankers are treating Xiaomi like the next Alibaba,” said one investment banker who spoke anonymously because of company policy forbidding him from speaking with the news media.
This will take an interesting role from now on if it got a perfect finance on its back.