February 1, 2015 by ...
Xiaomi was all the rage for a while. This was due, in great part, to the fact that a Tim Cook-led Apple had failed to do anything of significance. After Steve Jobs passed, Apple, it seemed, was merely floating along. They failed to impress with product offerings and it appeared that the bell was tolling for the fruit of the Silicon Valley, and then came the Apple 6…
Prior to the Apple 6
Newsies needed to drive hits so they reached for the next big thing-Xiaomi. This made sense, after all, Xiaomi came from nowhere to briefly obtaining third place in the global cell phone race. They did this by offering high specs in Apple’esque frames and ignored IP and licensing laws in the process.
The vacuum they filled was part good and part bad. On the positive side of the ledger, they made smart phones affordable to everyone. The downside is that they are almost single-handedly destroying global IP standards. Look no further than the Huawei Six Plus and Lenovo Sisley to understand the length to which Chinese firms will go in aping a global leader. As I said, this momentum was generated by a an ‘Apple-Sized’ void in the media space. Simply put, people needed to write about something and Xiaomi gave them plenty of fodder.
Apple back on track
Now that Apple has acted, and may. I add that their newest offering definitely does not seem to have Jobs’ DNA, Xiaomi has fallen off a cliff. In its home market, Apple spanked Xiaomi, whose kit costs 70% less. Even more dramatic is that in the Chinese $700-plus range, Apple sits alone.
All of this portends doom for Xiaomi, Samsung and others. If Apple can merely super-size its phone and set a record for company profits, then what hope does any other firm have?
The simple truth is that cell phones are merely a commodity and only one firm is able to truly differentiate themslelves. That firm is not Xiaomi, however.
(Pic from businessinsider.com)