XIAOMI might be one of the fastest Chinese Company at the time. Xiaomi,the Apple of China, just announced that they sold more in Smartphones in the first half of 2014, then in whole 2013.

That means that Xiaomi already made revenues of more then 5.3 Billion USD in 2014 so far, especially with Smartphones like the MI3 and Redmi Note.  Xiaomi’s financial report shows that they sold an impressive 26 Million Xiaomi Smartphones in 2014 so far. According to CEO Lei Jun Xiaomi plans on selling 60 Million Smartphones for 2014.

The US 5.3 Billion dollar Xiaomi made represents and very impressive 149% Growth compared to the same period in 2013. These Growth numbers are largely due to Xiaomi’s aggressive international expansion starting with Singapore and Malaysia. Recently they launched Xiaomi Philippines and Xiaomi India will follow soon. So far Xiaomi’s reception in Malaysia and Singapore is spectacular, while some customers complain about the scarcity of Stock.

While a lot of people call Xiaomi, the China of Apple, CEO Lei Jun says they are actually more close to Amazon’s Business Model.
“Our business model is more similar to Amazon,” Lei announced, relating to Amazon’s strategy of selling hardware at cost. On their profit strategy he said ”We sell all our products online and our gross profit rate is very low. Our price is one third of Apple’s,” he said. “We make our profits through content and services.”

XIAOMI is now the fifth year in Operations. It got the first time cristal clear that they are planning WORLD DOMINATION when hiring Ex GOOGLER Hugo Barra. Now they are already extremely successful in new markets like Malaysia and Philippins and more markets to come soon.

Our friends from JANA created a survey, where they talked to 750 yout from Vietnam, Philippines, Indonesia and India about the XIAOMI Phenomenon. Please check out the results of this survey here – and come to your on conclusions on Xiaomi.

XIAOMI : A Survey of Smartphone Users in 4 Emerging Markets

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It seems like Xiaomi is betting their money on a pretty safe bet. Why do we think so? On the question who is the highest quality chinese smartphone, all respondents but India placed Xiaomi very clearly in the TOP 3. In Vietnam they are even clear Number 1.

Its a bit of an surprise that Xiaomi is not in the TOP 3 for India. But then again the Indian Smartphone Market is extremely diversisfied with very strong local brands like MicroMax. If we follow the Social Media in India we can see that indeed a lot of customers awaiting the launch in Xiaomi India Launch.

Xiaomi Philippines just launched last week with their Xiaomi MI3. Soon they will begin to launch also in Vietnam, Indonesia and India. Other then Malaysia and Singapore we expect Xiaomi to have tougher competition from local smartphone makers in those markets though. Local Manufacturers as Micromax & Xolo in India, Cyrus & Mito in Indonesia, FPT in Vietnam and Cherry Mobiles & Myphone in Philippines will try to defend their local markets the best they can.

From what we can see from Xiaomi Philippines the first Xiaomi MI3 sales was a bit slower then in Malaysia and Singapore. This might have a few contributing factors. Philippines is the first country where Xiaomi is diverting from their proven Flash Sales Model on their own page. They are cooperating with Lazada Philippines. As Lazada had not only positive branding experience in the past that might be one point. Also as forementioned local brands are extremely strong in the Philippines. From what we can see Xiaomi Philippines upped their Game with some Social Media Games and now their popularity is growing.

Howewer judging Xiaomi’s history in other foreign markets and the Global Appeal Xiaomi will succeed in those markets eventually. It is completely up to XIaomi to keep producing high spec- high quality phones and undestand the local market better.

Overall Xiaomi’s Business Model is clearly working very well for them. Xiaomi did not reveal their profits for the first two quarters but the numbers indicate financial healthiness. Xiaomi CEO Lei Jun has even announced that Xiaomi wants to sell more then 100 Million Xiaomi Phones in 2015. Judging on Xiaomi’s current success this is a very feasible Goal for 2015. So far they have shown they can easily disrupt the local markets with their extremely effective Marketing and high speced Smartphones.

We all stay tuned and will follow closely here on Oizoioi.