Xiaomi’s Classless Letter About IP Theft in India

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December 12, 2014 by ...

Hugo Barra is nothing if not snide. When asked about Xiaomi stealing data he said a flat out, ‘No.’ Then he didn’t even have the grace to recant. His shameless utterances about copying Apple design shows that emotional intelligence is not a part of Xiaomi due diligence.

Now comes this….

Mr Barra has penned a letter in response to India pulling the plug on Xiaomi. 20141213-015109-6669131.jpg
The tone of the letter makes it seem as if India and not Xiaomi was to blame. Mr Barra talks about how many people have lined up to buy his handsets. This is most definitely true. What he fails to mention, however, is how come those units are so cheap. For three years now Ericcson has been begging Xiaomi to pay license fees, but they have not. Based on sales data, this means that the Chinese firm could owe Ericcson over $100 million. Of course Xiaomi would never pay this much for 97% of their phones are sold in China where they break the law with impunity.

Barra also fails to mention that Ericcson is not the only ones that xiaomi does not pay. According to this report, they pay exactly nothing on fees. That expense can mean the difference between death and survival. The same report quotes that law abiding companies can spend 30% or revenue on that type of spending. Couple this with the fact that Only Samsung and Apple have profit margins of over 5% and we see how crime truly does pay. After all, Xiaomi is at 9-12% profit matgins, thanks to stolen IP.

Barra’s attitude would be comical if it were not so sad. All he had to do was man up and admit it, they borrowed some tech and got caught. Just apologize, promise to change. After all, he knows that in China where Xiaomi sells 50million phones, they don’t have to pay Ericcson a penny.

But of course Barra will not do this. He fits the Xiaomi model. Refuse to take ownership of one’s faults, blame the other guy and bury the evidence. That is what they did here, after all.

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