Xiaomi Number One in China? Murky World of Chinese Sales Data

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August 16, 2014 by ...

Xiaomi Sales Data False? The Truth of the Xiaomi Market Size in China

Suspect sales numbers. In China the net is blowing up about suspect Xiaomi sales numbers in the mainland.

According to some analysts, Xiaomi recently garnered first place in the Chinese market. Others say Lenovo is at the top. The discrepancy in sales numbers is large and not easily reconciled. (The data comes from IDC and Canalys).

To tell the truth
Some say that the problem is in how data is collected. One analyst says that Xiaomi online sales are 40% of the total. The balance gies to resales and ‘Huang niu’ or scalpers. These Xiaomi scalpers buy phones in lots and then resell them. According to analysts, these numbers are double counted. Xiaomi includes them in their sales data. In addition, phones that are resold are counted as well. Thus the huge discrepancy in sales data.

Netizens were divided with half complaining that Xiaomi is fudging the numbers again. They call Lei Jun shameless. Others call this contingent ‘haters’.

Due to several factors Chinese data is usually suspect. There is always the specter of corruption and buying the pen of journalists and analysts to help falsify data. This is enabled by Beijing’s policy of making research dangerous, as two jailed foreign researchers found out.

According to a strong voice in China, Xiaomi is stroking its numbers and inflating them. This is even common with Chinese firms listed in the US stock exchange. Based on this, it sounds like Xiaomi may be guilty of the same.

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