There may be no hotter company on the planet than Xiaomi. In less than five years, the company has gone from startup to global player in the smartphone market. In an attempt to alleviate this, here’s a straightforward look at what Xiaomi is and where it’s headed.
The Mi Note is Xiamoi’s flagship product. Released on Thursday, the 5.7-inch phablet is being regarded as an answer to Apple’s iPhone 6. It is priced at 3,299 Yuan (about $530). CEO Lei Jun reportedly made numerous comparisons between the two phones at the Mi Note’s launch event.
Xiaomi’s meteoric growth has taken it from startup to major player in just a few years. This is thanks in part to its native Chinese market, which has seen smartphone adoption rise sharply.
Xiaomi was founded in June 2010 as a collaboration among eight partners including mobile chip developer Qualcomm and Temasek Holdings, which is an investment firm owned by the Singaporean Government.
After that, Xiaomi’s rise to success was swift. In 2014, the company sold 61 million phones, more than triple the number it moved in 2013. At the end of 2014, the company received $1.1 billion in funding, bringing its valuation to a staggering $45 billion.
In 2014, Xiaomi brought in revenues of $12 billion, according to Bloomberg. That is still quite small compared to Apple, which had sales of $182.8 billion in its most recent fiscal year. Samsung’s 2014 revenue was about $200 billion.
Xiaomi has a very thin patent portfolio, which analysts worry may stall the company’s growth as it attempts to move into other markets.
This will be an issue to watch going forward, as Xiaomi comes into more direction competition with the players in this industry. Some believe it could be only a matter of time until it meets Apple in a courtroom. Read more…