|Founded||April 6, 2010|
|Area served||Selected Markets
|Key people||Lei Jun (CEO)
Lin Bin (President)
Hugo Barra (Vice President)
|Revenue||US$5.5 billion (first half of 2014)|
Xiao - "little", mi - "rice"
It is the world's 3rd largest smartphone distributor that designs, develops, and sells smartphones, mobile apps, and consumer electronics. Since the release of its first smartphone in August 2011, Xiaomi has gained market share in mainland China and expanded into developing a wider range of consumer electronics. The company's founder and CEO is Lei Jun, China's 23rd richest man according to Forbes.
As per the new research by IDC, Xiaomi is now the third largest smartphone maker in the world followed by Lenovo and LG at fourth and fifth place respectively. Samsung remains at the first place despite declining shipment volume, followed by Apple Inc. at second place.
- 1 Etymology
- 2 History
- 3 Business Model
- 4 Products
- 4.1 Mobile phones
- 4.2 MiPad
- 4.3 MIUI (operating system)
- 4.4 MiWiFi (network router)
- 4.5 MiTV (Smart TV line)
- 4.6 MiBox (set-top box)
- 4.7 MiCloud (cloud storage service)
- 4.8 MiTalk (messaging service)
- 4.9 MiPower Bank (external battery)
- 4.10 Mi Band (fitness monitor & sleep tracker)
- 4.11 Air Purifier
- 5 Criticisms and controversies
- 6 References
- 7 External links
The name Xiaomi is the Chinese word for "millet". In 2011, its CEO Lei Jun suggested there are more meanings than just the "millet and rice." He linked the "Xiao" part to the Buddhist concept that "a single grain of rice of a Buddhist is as great as a mountain," suggesting Xiaomi wants to work from the little things, instead of starting by striving for perfection, while "mi" is an acronym for Mobile Internet and also Mission Impossible, referring to the obstacles encountered in starting the company. He also stated that he thinks the name is cute. In 2012 President Lei Jun said that the name is about revolution and being able to bring innovation into a new area. Several sources have linked the latter meaning to the Communist Party of China's "millet and rifle" (小米加步枪) revolutionary idiom during the Second Sino-Japanese War.
Xiaomi was co-founded by eight partners on June 6, 2010. In the first round of funding, institutional investors included Temasek Holdings, a Singaporean government-owned investment vehicle, the Chinese venture capital funds IDG Capital and Qiming Venture Partners, and mobile processor developer Qualcomm. On August 16, 2010, Xiaomi officially launched its first Android-based firmware MIUI. The Xiaomi Mi1 smartphone was announced in August 2011. It was shipped with Xiaomi's MIUI firmware which is based on Android and resembles Samsung's TouchWiz and Apple's iOS. The device could also be equipped with stock Android.
In August 2012, Xiaomi announced the Xiaomi Mi2 smartphone. The phone was powered by Qualcomm's Snapdragon S4 Pro APQ8064, a 1.5 GHz quad-core Krait chip featuring with 2GB of RAM and the Adreno 320 GPU. The company said on 24 September 2013 that the company had sold over 10 million Mi2 devices over the preceding 11 months. Mi-2 smartphones were sold by wireless phone vendor Mobicity in the United States, Europe, United Kingdom, Australia and New Zealand. On 5 September 2013, Xiaomi CEO Lei Jun officially announced plans to launch an Android-based 47-inch 3D-capable Smart TV, which will be assembled by Sony TV manufacturer Wistron Corporation of Taiwan. The company explained the choice as to take advantage of Wistron's skill as a supplier of Sony. In September 2013, Xiaomi announced its Mi3 phone, with a version powered by the Snapdragon 800 (MSM8974AB) and another by NVIDIA's Tegra 4 chipset. On 25 September 2013, Xiaomi announced plans to open its first ever retail store in Beijing. By October 2013, Xiaomi was reported as the fifth most-used smartphone brand in China. In 2013, it sold 18.7 million smartphones. and 26.1 million smartphones in first half of 2014.
In 2014, Xiaomi announced its international expansion outside of China with their first stop in Singapore. The international headquarters will also be set up in the city-state, which will coordinate all activities including future product launches in the region. Xiaomi's Redmi and Mi3 phone made their debuts in Singapore on February 21 and March 7 respectively. On 7 March, Xiaomi Mi3 batches sold out within 2 minutes of the opening day sale in Singapore. Following Singapore, The company has already landed in Malaysia, Philippines and India, and also has plans to enter Indonesia, Thailand, Russia, Turkey, Brazil and Mexico in the following months. On 17 March 2014, RedMi Note (also known as HongMi Note is some Asian markets) was announced by Xiaomi CEO Lei Jun. The RedMi Note features a 5.5-inch HD display with OGS technology and an octa-core processor from MediaTek. There are two variants of the RedMi Note, one with 1GB of RAM and 8GB of internal storage; and the other with 2GB of RAM and 16GB of internal storage. The phablet was made available for pre-order on 19 March exclusively through a mobile application from Tencent. In April 2014, Xiaomi purchased a new domain - mi.com for a record US$3.6 million. Mi.com becomes the most expensive domain name ever bought in China as confirmed by a senior executive of Xiaomi. Mi.com replaces xiaomi.com as the official website domain of Xiaomi. In Q2 2014, Xiaomi shipped 15 million devices or 14 percent of China's market share and beats Samsung which only shipped a slight more than 13 million. By July 2014, it had sold 57.36 million phones. In November 2014, Xiaomi said it will invest $1 billion in television content building. the investment is aimed at enriching the company's content and becoming a leading bellwether for the industry.
In selling the Xiaomi smartphone, Xiaomi employs a strategy that is very unlike other smartphone makers such as Samsung and Apple. Lei Jun, Xiaomi CEO, said that the company prices the phone almost at bill-of-material prices. To profit from the narrow margin, Xiaomi sells a model for up to 18 months instead of the short 6 months used by Samsung to profit from the fall in the costs of components that occurs over time. It also profits by selling phone-related accessories in addition to the themes and software.
To further reduce overhead costs, Xiaomi does not own a single physical store and instead sells exclusively from its own online store. It also did away with traditional advertising and relies on social networking services as well as its own customers to help advertise its products.
Xiaomi's flagship mobile handset line is the Xiaomi Mi series, past being the Xiaomi Mi3. The newest model in this line is the Xiaomi Mi4. It was initially launched in mainland China, followed by Singapore, Malaysia, Indonesia and India on March, May and July 2014 respectively. The Xiaomi Mi3 uses a modified Qualcomm Snapdragon 800 and has been tested as the world's fastest Android smartphone according to benchmark testing apps Antutu, Quadrant and Geekbench.
Xiaomi's another mobile phone is Redmi Note which is a phablet and the second smartphone in Redmi Series. In India, Redmi Note comes in two variants one with 3G and other is a LTE variant. In India, Redmi Note is available exclusively on Flipkart. The first flash sale of Redmi Note held on Dec 2, 2014 and 50,000 units went "Out of Stock" in mere 6 seconds.
The smartphone's software is based on MIUI, a closed source Android firmware based on the Android operating system. The latest flagship product of XiaoMi is the recently announced Xiaomi Mi4 at Xiaomi's annual product launch at Beijing on 22 July 2014, featuring a Qualcomm Snapdragon 801, 3GB RAM, 8Megapixel front camera, and a further optimized phone exterior.
It was reported that Xiaomi had ordered 50,000 sapphire covers from South Korean manufacturers, for a new premium smartphone.The limited edition may launch at the end of 2014.
The Xiaomi MiPad is the first tablet to be announced by Xiaomi. First announced in the Xiaomi New Product Launch Event 2014, the device is the first device to use the NVIDIA Tegra K1 quad-core 2.3 GHz processor with 2GB RAM and it is on sale in mainland China at the price of CN¥1,499. It is currently available in many online stores for under £200
MIUI (operating system)
MiWiFi (network router)
In April 23, 2014, Xiaomi announced a network router called the MiWiFi which is currently in beta and is available only to selected beta testers. It is said to have NFC support, a 1TB built-in hard drive and a Broadcom dual-core 1 GHz CPU.
MiTV (Smart TV line)
The MiTV is a line of Smart TVs designed and marketed by Xiaomi. It runs Android and was initially announced in 2013. The latest in the series is a 49-inch Ultra HD Smart TV with a quad-core CPU sold with a soundbar mainly in mainland China at approximately CN¥3,999.
MiBox (set-top box)
The Xiaomi MiBox is a smart set- box for televisions. From deals struck with content providers, the set-top box offers films and TV shows with no user account nor subscription required. The box can also access content via its USB port, such as through an external hard disk. Due to content licensing restrictions, it is currently only available in mainland China.
MiCloud (cloud storage service)
MiCloud is a cloud storage and cloud computing service created by Xiaomi. The service allows users to store data such as contacts, messages, photos and notes on remote computer servers for download to multiple devices running MIUI. The service also includes a feature that allows users to track the location of their MIUI device as well as alarm, lock or reset it.
MiTalk (messaging service)
MiPower Bank (external battery)
MiPower Bank is a battery charger with a built-in external battery. The charger is built with an aluminium case, and includes a battery rated at 10400mAh. Through the use of a USB cable, it can be used to charge any device that supports USB charging, including Apple iPhones, iPads, Android smartphones/tablets and more.
Mi Band (fitness monitor & sleep tracker)
The Mi Band was announced in August 2014. The Mi Band will be sold for US$13, has a reported 30-day battery life, can act as an alarm clock and tracks your fitness and sleep. The band also has the ability to unlock your phone based on proximity.
xiaomi released a air purifier on december 9 in a event in Beijing. This 899RMB device has the capability to clean upto 10000 litres of air in an hour. This device uses HEPA technology to reduce polluting particle ppm from as high as 600 to a clean 2.5 pm.
Criticisms and controversies
During Mi4 unveiling conferences, the presentation slides used Columbo's iconic catch phrase "one More Thing..." in its slides and it is the only English language slide in the whole 95 mins presentation.
Comparisons with marketing of Apple Inc.
Due to the minimalistic design of Xiaomi products, the brand was compared to an American corporation Apple Inc., the marketing strategy of Xiaomi is at times described as riding on the back of the "cult of Apple", It may be true that Xiaomi has die-hard fans in its domestic market, however. After reading a book about Steve Jobs in college, Xiaomi's chairman and CEO, Lei Jun, carefully cultivates a Steve Jobs image, including jeans and dark shirts, and Jobs' style of product announcements. He has been categorized as a counterfeit Jobs. The company's strategy has been categorized as counterfeiting philosophy, mindset and an icon. Despite repeated comparisons to Apple Inc., Xiaomi maintains that it espouses a different set of principles. Xiaomi has no retail stores nor does it partner with third-party distributors. Instead, all Xiaomi products are sold directly via the company's website. Skeptics categorize the products as non-innovative, and that any perception of innovation is good public relations. Others point out that while there are some similarities to Apple, the ability to customize the software based upon user preferences sets Xiaomi apart.
State Administration of Radio, Film, and Television issue
In November 2012, Xiaomi's smart set-top box stopped working one week after the launch due to the company having run afoul of China's State Administration of Radio, Film, and Television. The regulatory issues were overcome in January 2013.
In August 2013 Xiaomi announced the hiring of Hugo Barra as vice president of international from Google, where he had served as vice president of product management and product spokesperson for the Android platform and product line. Some controversy surrounded the move, given the timing coincided with news that Google co-founder Sergey Brin was in a relationship with Barra’s ex-girlfriend. Barra later clarified that he had been in talks with Xiaomi for over a year prior to the announcement.
Xiaomi's cloud storage service Mi Cloud stores all the user data in its servers located in China. There were also reports that Xiaomi's Cloud messaging service sends some private data like call logs and contact information to Xiaomi servers. To fix this issue, Xiaomi released a MIUI update that made cloud messaging optional. Now, no private data is sent to Xiaomi servers if the cloud messaging service is turned off.
In October 2014, Xiaomi announced that it was setting up servers outside of China for international users citing improved services and compliance to regulations in several nations. Around the same time, the Indian Air Force issued a warning against Xiaomi phones, stating that they were a national threat as they sent user data to an agency of the Chinese government.
The Taiwanese Fair Trade Commission had investigated the flash sales and found that Xiaomi had sold less smartphones than advertised. In December, 3 separate flash sales were investigated. In those flash sales Xiaomi claimed that the amount of smartphone sold was 10,000 units each for the first two sales, and 8,000 units for the third one. However, FTC had investigated the claims and found out that Xiaomi only sold 9,339 devices in the first flash sale, 9,492 units in the second one, and 7,389 for the third.  found that what happened (during the first flash sale) was that Xiaomi gave 1,750 priority ‘F-codes’ to people who could place their orders without having to go through the flash sale, thus diminishing the stock that was publicly available. The FTC fined Xiaomi NT$600,000. 
Ban In India
On December 9, 2014 Delhi High Court granted an ex parte injunction that banned the import and sale of Xiaomi products in India. This injunction was issued in response to a complaint filed by Ericsson in connection with the infringement of its patent licensed under FRAND (Fair, Reasonable and Non Discriminatory Licensing). This injunction issued by the High Court is applicable till February 5, 2015, the date on which the High Court has summoned both the parties for a formal hearing of the case. On December 16, The Delhi High Court granted permission to Xiaomi to sell its devices that are running on a Qualcomm based processor till January 8, 2015. Following this, Xiaomi is expected to resume the sale of RedMi 1S from December 23. It will also start selling the 4G variant of RedMi Note.
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