Is it possible to sell 100,000 smartphones in 4 seconds? Yes, Xiaomi replied on October 14 in a record online flash sale made on India’s Flipkart.
The Chinese company established in 2010 has entered the world’s top 5 of the highly competitive smartphones’ sector directly taking the 4th place with a 5.6% market share between Korea’s LG (5th – 5%) and fellow compatriot Lenovo (3rd – 8%). Samsung (1st – 24,7%) and Apple (2nd – 12,3%) still dominate the market, but for how long? One could legitimately ask.
Xiaomi, very famous in China, is likely to have strong international ambitions for 2015, after multiplying its sales by 3 from 18 million units sold in 2013 to 58 million units sold in 2014. Valued at $10 billion in 2013, Xiaomi has become worth a lot more as it became China’s number 1 this summer, confirming the success of its strategy of maximizing low-margin sales and generating profits from its proprietary online Android apps center.
Xiaomi’s development is geographically concentric, privileging countries with strong cultural and geopolitical ties with China. Firstly, Asia with Singapore, Thailand, India, Vietnam, Indonesia, Malaysia and the Philippines. Secondly, BRICS-like nations with Russia, Brazil, Mexico and Turkey. Xiaomi embodies a new generation of Chinese producers capable of questioning the Korean leadership in the long term.