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China's Xiaomi Gearing Up For US Debut (bloomberg.com)

An anonymous reader shares a Bloomberg report: Xiaomi is preparing to enter the U.S. smartphone market "in the near future," employing the same online sales and social media marketing tactics that helped the six-year-old startup become China's largest privately funded startup. Xiaomi can no longer afford to ignore the world's largest smartphone arena by revenue, company vice president Hugo Barra said in an interview. Its international expansion is taking on new-found urgency as growth at home slows and rivals such as Huawei erode its market share. "The U.S. is a market that we definitely have in our sights," Barra said on Bloomberg Television. "We will lead with social media, with the channels that allow us to get in touch with the young generation that are enthusiastic about new technology. We are definitely going there." Barra, who oversees the Chinese company's international expansion, has signaled Xiaomi's U.S. debut before. But the smartphone vendor is now in a better position to launch an incursion onto Apple's turf. In June, the Beijing-based company announced the acquisition of nearly 1,500 technology patents from Microsoft -- a deal that may smooth potential legal tangles over intellectual property as it pushes abroad.

42 comments

  1. Subsidy == No Sales by s.petry · · Score: 1, Insightful

    Like we saw with Solar panels, it's easy for China to subsidize products to cause irreparable harm to foreign manufacturers. I have no doubts that the current administration does not care, they only have to suffer the people's wrath for a few more months. The rest of us however should be demanding that the company has it's books wide open for review.

    --

    -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    1. Re:Subsidy == No Sales by AmiMoJo · · Score: 1

      This will be their biggest challenge - overcoming prejudice against Chinese products and companies. They will be labelled as cheap Chinese made crap (somehow putting "designed in California" on the box changes that) and accused of being a government front for backdoors and economy-weakening subsidies.

      Maybe they should just double the price, seems to have worked for Samsung.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    2. Re:Subsidy == No Sales by OhPlz · · Score: 1

      Everything is made in China. If people didn't want Chinese crap, Walmart wouldn't still be in business.

    3. Re:Subsidy == No Sales by Voyager529 · · Score: 2

      iPhones are manufactured in China, and so are plenty of Samsung's components. Xiaomi could well battle HTC and Huewei for a solid third place slot, and that slot really is up for grabs right now. "Chinese" tends to mean "flimsy", "poorly constructed", and/or "knockoff product" in context, but Xiaomi has had a few well-constructed handsets that indicate a potential for doing alright in the market. Honestly, what the bigger concern is for them is whether they'll be able to play the carrier game and not get screwed over by Verizon and AT&T in the quest for shelf space along with the premium handsets.

    4. Re:Subsidy == No Sales by Anonymous Coward · · Score: 0

      Maybe if you spelled her name right you might be thought of a a misdirected but earnest opponent, but like this you're just another ignorant partisan shill.

    5. Re:Subsidy == No Sales by neo-mkrey · · Score: 1

      What are you babbling about?

    6. Re:Subsidy == No Sales by JoeyRox · · Score: 1

      You mean how the US Government subsidized the entire American automobile industry during the 2008 financial crisis?

    7. Re: Subsidy == No Sales by Anonymous Coward · · Score: 0

      "Designed in California, made in China" is parsecs different from "Designed and made in China". Shoddy quality, substandard procedures and poor quality control matters big time if you want to climb up with in the market chain

    8. Re:Subsidy == No Sales by tlhIngan · · Score: 1

      This will be their biggest challenge - overcoming prejudice against Chinese products and companies. They will be labelled as cheap Chinese made crap (somehow putting "designed in California" on the box changes that) and accused of being a government front for backdoors and economy-weakening subsidies.

      Well, for Xiaomi, it's a bit deserved, since their MIUI, copied, err, "borrowed" heavily from iOS. It was a pretty thorough reskinning too.

      They do make nice phones, but they cheapen them with the copying of looks instead of striking out on their own.

      An then the whole cloud thing - Xiaomi is heavily invested in cloud - it's why they give away MIUI for other phones so they can "adapt to user's behaviors".

      The anti-Chinese bias is not undeserved - they could very well make very nice phones with their own unique UI that doesn't copy or borrow much from anything else. The Chinese are more than capable of things like that, but instead of trying to make themselves different, they wish to just copy.

      Part of this could be the low regard to intellectual property - if they don't value software licensing (i.e., lots of pirated software), then what value is there in a Chinese person who does software?

    9. Re:Subsidy == No Sales by Anonymous Coward · · Score: 0

      kinda amusing considering the US is mass subsidising its own industries which undermine the imports too.

    10. Re:Subsidy == No Sales by bloodhawk · · Score: 1

      yeah, it isn't like the US *ever* subsidises US industries causing irreparable harm to foreign manufacturers.

    11. Re:Subsidy == No Sales by Anonymous Coward · · Score: 0

      how dare those nasty chinese use our own tactics against us.

    12. Re:Subsidy == No Sales by LynnwoodRooster · · Score: 1

      Well, except for Ford. But I guess if you're a Chevy guy, then that is the beginning and the end of the US automobile industry...

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    13. Re:Subsidy == No Sales by Anonymous Coward · · Score: 0

      Like we saw with Solar panels, it's easy for China to subsidize products to cause irreparable harm to foreign manufacturers. I have no doubts that the current administration does not care, they only have to suffer the people's wrath for a few more months. The rest of us however should be demanding that the company has it's books wide open for review.

      Spoken like a FOX educated moron. When you stop subsidising exports to Australia maybe you'll be seen by the rest of the world as trustworthy trading partners instead of "Free Trade" hypocrites.

    14. Re: Subsidy == No Sales by Plumpaquatsch · · Score: 1

      "Designed in California, made in China" is parsecs different from "Designed and made in China". Shoddy quality, substandard procedures and poor quality control matters big time if you want to climb up with in the market chain

      Ahh, but Xiaomi is "Exterior designed in California, rest done in China".

      --
      Of course news about a fake are Fake News.
    15. Re:Subsidy == No Sales by Plumpaquatsch · · Score: 1

      Everything is made in China. If people didn't want Chinese crap, Walmart wouldn't still be in business.

      You can't judge all products made in a country alike. Not all products from America are as shoddy as "America" - heck, not even most beers are. For that matter, actual beer from Budweis (aka Budjovice) tastes nothing like it, but that is beyond the point.

      --
      Of course news about a fake are Fake News.
  2. Party Officer by Anonymous Coward · · Score: 2, Insightful

    Somewhere, in every Chinese company, there is a Government Party Official sitting in an office, with sole purpose to make sure the business adheres to Communist Party ideology.
    Don't fool yourself kids, these cheap Android phones all have backdoors to China.

    1. Re:Party Officer by farble1670 · · Score: 1

      The only ideology alive in China is the love of money.

    2. Re: Party Officer by Anonymous Coward · · Score: 1

      At least they remove the backdoors to the US government...

  3. Step 1: Name change by Anonymous Coward · · Score: 0

    Sorry, Xiaomi, but your name will not sell well in the US, but you know that because you've done your market research, right? Right?

    Unless you're planning to sell exclusively to Chinese Americans, a simple change to Saomi would probably sell 10x as many phones as Xiaomi.

    1. Re:Step 1: Name change by Anonymous Coward · · Score: 0

      No, Step 1: Licensing to domestic producers who have domestic distribution chains already established.

    2. Re:Step 1: Name change by Fly+Swatter · · Score: 1

      .. a simple change to Saomi would probably ..

      Who would pick a name that sounds like 'Sue Me' ?

    3. Re:Step 1: Name change by Anonymous Coward · · Score: 0

      It would be "Say o me" not "Sue me"

      Anyway, I was just pointing out that "Xiao-" prefix won't sell in the US.

    4. Re:Step 1: Name change by Anonymous Coward · · Score: 0

      Because of the X -- like Xerox?

    5. Re:Step 1: Name change by Keruo · · Score: 1

      I have a Ainol branded tablet, their logo is * , I don't really expect that brand to sell well if it ever lands in US.

      --
      There are no atheists when recovering from tape backup.
  4. I don't know how they expect people to use this... by Anonymous Coward · · Score: 0

    How many USians even know Chinese? Why doesn't anyone think of these things?

  5. But... by johnsmithperson123 · · Score: 1

    The Xiaomi Redmi 3 is already on sale at Amazon. How are they not here?

    1. Re:But... by cliffjumper222 · · Score: 1

      It's a good question, but the phone is not the Xiaomi experience.The full Xiaomi experience is all about hyper-focused customer marketing. See this paper - "Fan-centric social media: The Xiaomi phenomenon in China" (PD: https://goo.gl/f7EZtS)

      Abstract:

      In this highly competitive century, social media offers both opportunities
      and challenges. The concept of social media is top of mind for many entrepreneurs
      today. Fans are assuming an increasingly active role in co-creating marketing content
      with companies and their respective brands. Based on the Xiaomi success story in
      China, we provide a framework for building the power of the fan base and propose a
      new fan-centric social media business model. We examine the best practice case
      study of an emerging company’s successful efforts to leverage social media in order to
      reach an important audience of young consumers. Thereafter, we conclude with
      several lessons related to the integration of social media into a new firm’s operation
      strategy. We strongly recommend that businesses, and especially startups, make good
      use of powerfulsocial media to develop a business model with fan demand asthe core.
      This is what we call the ‘fan-centric’ social media business model.

  6. Hopefully other products as well by HalAtWork · · Score: 2

    They have an excellent range of clever products, like tablets, power banks, external storage, headphones, and other devices, conveniently at a good price. I hope they have a store presence here, waiting for that stuff to ship (and avoiding counterfeiters) is a pain.

  7. Great products for the price by Ecuador · · Score: 4, Interesting

    After replacing my Samsung Galaxy S4 (flagship device, cost when new 550 euro) with a Xiaomi Mi4 (flagship device, cost when new 200 euro), I have never looked back. I tried the switched because there were a couple of annoyances with the Samsung, plus I actual made money from the switch (yes, people were buying a second hand S4 for more than a new Mi4!). Not only you get the top specs, same as every other flagship, including high quality screen, good battery (the Mi4 lasts about 20-25% more than my S4), but you also get some unique stuff that only the Xiaomi has. For example, without even using a PC, you can go to the Xiaomi website, download the latest ROM image, save it and either upgrade or rename it, reboot in service mode and have it clean-install (useful when ordering from cheap retailers that make up for the lower price by installing spyware/adware crap). Oh, and when you do something bad and break your installation, it is dual boot with a clean basic image installed on an extra partition! Even better, Xiaomi continuously updates all their phones, you can be running Android 6.0.1 (official) whether you have the latest flagship (Mi 5), or the previous flagship (Mi 4) or the flagship before that (Mi 3 from 2013) or their cheapest device from 2 years ago (Redmi 1S) etc...
    And they have some other cool devices as well, but their phones have really done it for me, I'll be going with Xiaomi as long as they don't screw it up. Since you have to go through sometimes shady retailers sometimes currently, it will be great if they officially export to the US and other countries.

    --
    Violence is the last refuge of the incompetent. Polar Scope Align for iOS
    1. Re:Great products for the price by Anonymous Coward · · Score: 0

      How's the quality of OS? I bought a $100 non-brand Android phone once. It worked surprisingly well, but there were some OS errors (screw-ups with some letters and numbers, icon position loss after reboot, incorrect battery reading, etc.). I'd be in the market for one if I could guarantee it'd work well.

    2. Re:Great products for the price by Ecuador · · Score: 2

      This is not related to "non-brand" or discount brand phones with a generic Android slapped-on with some crap. Xiaomi is actually the Chinese high-end, and their OS called MIUI is actually a very well maintained project with a consistent UI (I'd say it borrows ideas from iOS and TouchWiz, in any case it is simple and familiar), continuous updates with the latest Android kernels and various useful extras. In fact, they build packages for hundreds of third party phones (including all the popular LG, Samsung, HTC, Moto etc) should you want to try it out: http://en.miui.com/download.ht... . Although for non Xiaomi phones not all features are available and also I have no idea if the experience will be as polished.
      Xiaomi originally pissed off the GPL people for not releasing their source (I guess not many Chinese companies do), but I think they eventually did publish it - in any case you can look it up if that is something you care about.

      --
      Violence is the last refuge of the incompetent. Polar Scope Align for iOS
  8. Typical Chinese by jon3k · · Score: 1

    Xiaomi is an embarassing iPhone knock off. Just look at their website.

    1. Re:Typical Chinese by bloodhawk · · Score: 3, Informative

      embarrassing? Apple pride themselves on copying others well, Xiaomi seems to follow in the same footsteps though with slightly better specs and much better prices. Not sure on their quality as I have never had one but all the reviews are pretty damn good and I am considering one as my next phone.

    2. Re:Typical Chinese by CrashNBrn · · Score: 1

      Considering it costs about 1/5th as much as an iPhone. Doesn't look like an iPhone, and everyone that I've shown the "Xiaomi Redmi 3 Prime" to - asks "what kind of phone is it?". I'd say no one but you thinks its an "embarrassing iPhone knock off".

    3. Re:Typical Chinese by jon3k · · Score: 1

      Personally I like to reward invention. I don't think it's ok for someone to steal the work of others and offer a cheap knockoff at 1/5th the price.

  9. good artists copy; great artists steal by xororand · · Score: 2

    "Picasso had a saying -- 'good artists copy; great artists steal' -- and we have always been shameless about stealing great ideas."
    -- Steve Jobs, 1996

    1. Re:good artists copy; great artists steal by jon3k · · Score: 1

      You misunderstand the meaning.

      It doesn't mean to make a wholesale knock-off copy of something. That misses the point entirely. Everything is a remix: we all take elements from the thinks that came before us and improve on them to invent new things. We don't just try to copy an entire product from beginning to end. That doesn't advance the art, it's what a leech does to benefit from real innovation.

    2. Re:good artists copy; great artists steal by Anonymous Coward · · Score: 0

      and the Xiaomi devices are not wholesale copies, they seem to be many of the best elements of apple combined with the superior specs and features of Samsung. appears to be the exact philosophy, take whats great and use that as your base to improve upon.

  10. Strange, I thought there would be patent issues. by Anonymous Coward · · Score: 0

    I thought the reason why Xiaomi had troubles debuting overseas was because of various patents held by Apple and Samsung.