The biggest smartphone company in China, and the fifth biggest smartphone player in the world, is getting ready to make its U.S. entrance and establish a mini version of Mi.com, its e-commerce venture, but it won't be selling smartphones or any mobile handset devices any time soon.
The big reason is compatibility with U.S. carrier networks, but then there are the issues tied to intellectual property and patents that come into play. Xiamoi, which is just five years old and runs its devices on the MIUI Android OS, sold 61 million smartphones in 2014 alone. Its product portfolio includes the Mi Note and Redmi smartphone lines, a Mi Pad tablet, and Mi Power Bank.
The store will sell smart home products, accessories, such as headphones, and the company's very popular Mi Bunnies.
"The amount of effort to bring [iPhones and tables] to market is significant," said Xiaomi VP Hugo Barra, a former Google VP. "So we're accelerating our entry, in a sense, by bringing in simpler products."
"We just have to move at the right pace," Barra stated during a press announcement event, noting other market challenges such as regulations, the language gap, manufacturing and packaging.
Xiaomi has skyrocketed to fame and grabbed its big customer base using a mix of deep social media marketing, with its own fans driving much of its marketing through stunts such as logo haircuts and photo shopping the company founders into legacy movie posters. Its customers are also very active in online forums and offer insight to the vendor on devices and features.
"We don't have customers or users. They prefer to be addressed (as) fans," said Barra.
The news comes as the U.S. smartphone market gets more competitive, with top players Samsung and Apple vying to give consumers the next greatest smartphone feature. Some industry watchers compare Xiaomi to Apple due to its rabid customer base and customer adoration. Others, however, say Xiaomi is successful as it copied Apple's device and marketing strategy.
The U.S. move, announced Thursday, is an "experimental launch," stated Barra and aimed at building the company's brand outside of its China market stronghold.
Some industry watchers view Xiaomi as the top valuable global start-up given its $45 billion valuation. Xiaomi, founded by serial entrepreneur Lei Jun, states its strategy is to deliver high-quality tech but not at a high cost to consumers.
"At Xiaomi, we've brought together smart people from Google, Kingsoft, Microsoft, Motorola, Yahoo, and other Internet and tech companies from around the world to bring that vision to life," states the company's website.
