iPhone Clear Winner in China, Xiaomi Gets the Crumbs 

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April 4, 2015 by ...

China’s Xiaomi is selling a lot of kit. What they lack in corporate strategy and or vision, they more than make up for in aggression. Their corporate logic leads to sell any and everything, with seemingly little care about corporate fit. 


Think I’m wrong? Then tell me how this 

Their communist-themed plush toy, relates to this

 

Their incredibly tinny sounding earbuds?

Of course the answer might be as simple as this: the commie-toy is merely a marketing tool to reinforce brand image. 

This is probably true, but who know? For sure it does not seem like Xiaomi does. They are literally into everything but have no roadmap. To them, digital is the key and any product capable of using 1’s and 0’s, and even those which don’t, are part of their product portfolio. 

This brand abstraction has lead to an increase of Xiaomi gear in the wild but little else. Instead of creating brand leadership, they seem to be stuck in an identity crisis. The manifestation of this is their horrendous showing against the iPhone. 

Just the facts

iPhone 6 and 6 Plus sales occupied 27.6 of the market in urban China in May. This is a 2 percent increase from the month before. The increase has led China to be the largest smartphone manufacturer in China.

The bad news for Xiaomi is that Apple accomplished this with a handset costing as much as four times the price. For example, one can get into top end Xiaomi gear for about $400while the most expensive iPhone runs about $1,300. 

How incredible is that? Xiaomi is bested by a company selling goods for not one, nor two, but three times as much. 

The bottom line is the bottom line. Xiaomi’s business model is to throw as many products into the market at cut rate prices and try to proft from volume. What they cannot do, however, is benefit from premium pricing. 

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