July 19, 2015 by ...
China is the land of fakes. The PRC mimics everything, from Eiffel Towers to the White House.
It would seem as if the ‘middle kingdom’ has thrown up its hands and admitted that aside from creating firecrackers
And a big fence
That it’s days as an ‘innovator’ are far gone. Now it would appear as if China knows that there is more money and less risk in fraud. Based on the fact that out of the China-based Fortune 500 companies, few are not state-owned. In other words, China’s huge companies are in protected and innovation poor industries such as petroleum, banking and the like.
Those Chinese firms bucking this trend are faux-Google (Baidu), mimicked Facebook (Weibo) and a few others. In any event, China’s innovative incapacity is obvious. As I said, they figure it’s easier to steal and replicate than to invent.
Xiaomi has gotten in on this craze and has monetized piracy to the tune of a $45 billion valuation.
Interestingly enough, ‘live by the sword and die by the sword’. This is true for xiaomi as a recent study showed.
Antutu is an Android benchmarking app which tested over 10 million phones in China. Of those, 31% were fakes. Whether the consumers knew they were buying copies is anybody’s guess. The facts however, show how prevalent pirated phones are.
But back to Xiaomi, they are hurt worse by frauds than any other. This is because of those millions of fraudulent phones, 37% are Xiaomi.
The reasons for this being karmic are obvious. Xiaomi ‘kleptoed’ their way to an incredible valuation and now they are being ripped off. Even though they try hard to prevent counterfeiting, it’s still widespread.
It would be easy to shed a Xiaomi-shaped tear, if that same droplet would not look so much like it was created by Apple.