January 3, 2015 by ...
India is the biggest market for Xiaomi phones outside of China. This has Indians asking why it is a mainland company and not homegrown one which is servicing their needs. In order to answer this question, an Indian company has created the Yu line of phones. They sell quality gadgets on the cheap, much the same as Xiaomi does.
Here is an interesting slide show comparing the Yu Yureka from India to the Xiaomi note from China. The author nails his report on so many levels. For example, the Xiaomi kit is cludgy and feels cheap. Its plastic hull says ‘cheap’ and looks the part as well. It takes its design cue from a sugar cube but adds about 200 grams of bulk. The Yu, on the other hand, seems pretty well made. It has aesthetic appeal and packs high end electronics into its frame just as the Xiaomi does.
What is most interesting to note is that absent patents and unique design, Xiaomi merely competes on price. This means that any firm can take them on by doing the same. Apple, on the other hand, makes beautiful handsets, at least before the 6 and 6 Plus arrived.
Xiaomi is now behind the eight ball as part of their business model is easily copied outside of China. Any firm building on the cheap can potentially knock them off their pedestal, and those firms abound. Aside from this, Xiaomi is a service laggard which hurts them at home. The. Yu phone does not seem to be making the same mistake as it offers door-to-door service, something Xiaomi cannot do.