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Chinese smartphone giant Xiaomi enters U.S. market with just a few accessories


Xiaomi Corp has planned to launch its smartphone products in the United States at any time, this information was announced by the experts in the industries, after Xiaomi Corp said that it is going to enter into the land of Apple Inc.hugo-barra-xiaomi

The top executives of the company said that it is going to open an online store over the end of this year and this might increase the reach of their products. But the main thing is that, the Chinese company is not yet ready to challenge the Apple Inc. with its smartphones. The online store will only sell products that come in accessories segment, includes headphones, fitness bands and so on. The flagship products will not be available in the United States for purchase.

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Hugo Barra, Xiaomi’s vice-president in charge of international operations, said,

Xiaomi will be very cautious about launching the Mi devices in the US market. “The amount of effort required to bring those products (smartphones and tablets) to market is significant. We just have to move at the right pace,” Barra said. “So we are accelerating our entry in a sense by bringing simpler products.”

Barra, a former Google Inc executive, who joined in Xiaomi in the year of 2013,said in an interview that manufacturing a device and software compatibility are the major issues and hurdles for a manufacturing company to introduce a smartphone in developed markets like US and Europe.

Few days back, Qualcomm Inc, investor of Xiaomi has been fined 6.08 million Yuan for violating the antitrust rule of China and Qualcomm follows cross-licensing policy that allows its clients to surrender their patents to Qualcomm and in return they offer its technology. Qualcomm cross-licensing policy has been criticized by the most of the largest smartphone vendors and in the meanwhile, it allows the smaller players to use their patents under the protection of the policies.

Bryan Wang, vice president and principal analyst at Forrester Research Inc, said that most of the people in the unites states going for contract phones and most of the top-tier device comes with really cheap price while compared to its original price. He also added that Xiaomi will find very difficult to compete with Apple in the United States.

Xiaomi stated that it required a significant effort to bring phones and tablets to a market and they were moving at a right pace. The company also known as “the Apple of China” is valued at $45 billion after the recent funding by investors ranging from Singapore’s sovereign wealth fund to Alibaba Group co-founder Jack Ma.

The affordable range of smartphone and tablets made with high-end components along with the online “flash sales” model has made Xiaomi a major success in countries like China and India. The company is not selling smartphone for the time being due to the country’s carrier-sales and cost subsidy structure. Lin Bin, cofounder and president mentioned that time and effort was needed to customize MIUI for individual markets including obtaining certification.

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About John W Arthur

john@thenextdigit.com'
John is the head of our IT Security team and he writes about Security, IT news on The Next Digit. He was the Employee of the Year 2013 for his selfless support and efficiently setting up the whole security infrastructure. He also occasionally writes on "IT Sec Pro" Print Media of Sweden. All posts by John

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