Why Xiaomi Matters, Or Not?

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November 7, 2014 by ...

Interesting point-counterpoint below. A reader commented that Xiaomi is not very relevant . He essentially said that their quality, price and positioning makes them a bottom feeder. He points out that they cater to low wage earners in less affluent areas, and he is right. Xiaomi’s market is primarily in this demographic. nonetheless, Xiaomi is still relevant.

I would argue that this is due to their ability to leverage nationalism and use it as a tool, as much as anything else. This post proves that Xiaomi is short on innovation, contrary to what many say. In other sections, I have exposed the business model which Xiaomi has also cribbed from various sources.

Once again this does not mean Xiaomi is irrelevant, but that people admire it for the wrong reasons. Lei Jun is cashed up and trying to make wise choices for the firm. Standing in the way of success is others which are damnable. Questionable ethics in terms of IP theft and security come to mind.

Take a look and see what you think…

Excerpt

In response, a reader named Bob left the following comment about the rise of Xiaomi:

I would discount XIAOMI becoming a challenger to the big three – they are an ultra-budget phone provider who generally sell into relatively unsophisticated second tier markets like China, India, Pakistan, Turkey etc. I have a business associate from Pune who related they have an awful reputation for hardware and software issues and more than one model with a massive product recall. They have a lot of catching up to do if they want to gain a share in western markets.

Bob is quite correct in pointing out the quality of some of Xiaomi’s devices have been questionable so far. However, especially if you’re in a tech-related business, there are five major reasons why it’s nonetheless worth paying attention to what they’re doing:

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