This is Why Xiaomi is Developing a New $69 Phone

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November 14, 2014 by ...

Xiaomi is going to make this….20141114-135638-50198185.jpg

Because of this phone by China’s OOOGUO

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In an effort to maintain sales at the low end of the Chinese market, Xiaomi is developing an even lower priced model than its discounted Red Mi which now goes for RMB 599.

Why are they doing it?
Xiaomi seeks to own the low-price cell phone market in China. They have successfully attacked the second and third tier cities and sold to low income consumers. Unfortunately for them, China is home to cheap phones. This coupled with lax intellectual property laws, makes it easy for anyone with $250k to start selling handsets and even cribbing foreign designs.

In order to compete and maintain market share, Xiaomi is chasing prices down the rabbit hole. They seem unconcerned about this as they seek to earn revenue from apps and such.

Pandoras box
Interestingly enough, OOOGUO seeks to beat Xiaomi at its own game. Not only does OOOGUO-shown below, take ‘design cues’ from Apple as shown here

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But from Xiaomi as well

20141114-142051-51651218.jpg

This phone looks much like the Red Mi and the one before is a spitting image of an Iphone.

IP theft, China’s cell phone business model?
What Chinese companies have learned is that aping Apple is ok. Beijing will not enforce its IP laws and why invent something when you can legally steal? In this sense, Xiaomi has shown how easy it is to make big money off heavy handed IP theft.

In what can only be considered poetic justice, now that the globes are off, an influx of Chinese companies are out to ape ‘Apple-aping’ Xiaomi. Now such brands are competing in price and consumers are laughing their way to retail outlets to capitalize on the blood bath.

Addendum
According to gizmochina.com the OOOUGUO is not too shabby, sporting:
According to reports, the Uoogou X3 uses the 1.5GHZ MT6589 quad-core chipset. Considering the frequency, this phone must be using the MTK6589 Turbo Edition. In addition to the 1GB RAM, it also has 8GB of internal memory storage. It also sports a 4.7-inch IPS display screen with qHD resolution and has a 2mP/8mP dual-camera. Its operating system is the Android 4.2 and it supports TD-SCDMA+GSM dual-SIM.
Review here

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