June 12, 2015 by ...
Xiaomi is partnering with everyone from lightbulb producers to scale touters. With seemingly little to no logic to their moves, Xiaomi is just making buddies.
Their latest major announcement however, does make sense. They recently established a video alliance. This is great news as Xiaomi bills itself as an ‘internet company’, which is odd considering that 90% of its sales comes from smartphones and a good hunk of their profit from selling plush toys dressed like communist soldiers.
Xiaomi undoubtedly believes that in selling vids, they can finally live up to their billing as a real Internet company. In order to do so they partnered with up to 100 video sharing sites including iQiyi and Youku Tudou.
China’s biggest left out
Letv, China’s largest video company was not made part of the Xiaomi team. This makes sense insofar as Letv just introduced a phone which competes directly with Xiaomi kit. Letv seeks to pull an ‘Amazon’ and capitalize on a huge customer base; albeit they hope to succeed.
Lei Jun was unconcerned about that move as his firm is the smartphone leader in China. Partnering with his newest competition apparently did not fit into Xiaomi’s video plans, and Lei told Letv to ‘Leeeave’.
Letv, a better tech play?
Interestingly enough, it’s Letv which is seen as a better company here in China. Business people claim that it’s staffed with professionals, unlike many old school Xiaomi’ers. Those same Letv fans point out that Letv is not a mere copycat but a company with a vision.
Despite what you’ve read, it may be Letv who is truly the Chinese tech firm to watch. As I mentioned, this is due to the professional nature of its staff, its ecosystem and management team in general.
Letv- ‘Xiaomi cannot create’
In a jab at Xiaomi’s inability to create/innovate, Letv’s CEO said ,”Xiaomi does not have self-developed content and the alliance is not truly integrated…”.
In other words, the move is superficial as Lei Jun and crew will be reliant on others for ideas, videos and adds little to the mix. Letv maintains that Xiaomi just wants content to show in their hyper-cheap TVs.
Xiaomi hopes otherwise as its invested over $1 billion in the deal.