The Chinese Mobile phone manufacturer, Xiaomi, seems to be preparing to enter smartphone markets in the United States, According to the VC, Hugo Barra, the company is no longer in a position to exclude the American markets.
Tapping A Huge Market
The USA offers one of the biggest markets for smartphone manufacturers, it terms of revenue generated. Xiaomi has acknowledged this fact even before and is not all set to launch its tablets and mobile phones as well as laptops in the US by the end of 2016. The company seems to be in a good position to do this as it has obtained 1500 patents in technology from Microsoft a few months back. The company can make use of the patents to extricate it from legal problems with competitors, while attempting to enter the markets in North America.
Xiaomi has already begun selling headphones as well as battery chargers in America and the brand name of the company is getting well established in the country.
Attracting Younger Consumers
The company is also planning to use the social media along with direct sales from its website, so that it can be more appealing to the youth of the country. Xiaomi is obviously targeting the younger generation of the country for its products. The company feels that the youth of the country will show more enthusiasm for its products and this will provide the much-needed opening in North America.
Time of Release
Hugo stated that Xiaomi does not still have a concrete schedule or timetable for the release of its devices, but it is being planned in the near future. Things have to be planned and timed in a very cautious manner. The company is planning to repeat its success story in India. After several false starts, Xiaomi is now enjoying good sales in India.
A Different Market
But India presents a market that is quite different fro the one in the US. The mobile phone penetration in the country is lower, the prices of the phones are less and the carriers are still rolling out 2G and 3G along with 4G LTE and making related investments. As for the market in the US, it is entirely different as most of the consumers are well on their way to an updated or second mobile phone. In addition, companies like Samsung as well as Apple are the leaders of the market and they have large budgets for marketing. They are also experts when dealing with carriers in the country and are better able to sell devices to consumers through the carriers.
Competition in Home Market
The company is also facing fierce competition even in the domestic market in China, with competition coming from companies like Vivo and ZTE as well as Huawei. The last one especially has enjoyed a lot of success in the past few months. Huawei as well as ZTE have also sold many of their devices through the carriers of America and Xiaomi has to attempt breaking into the carrier network in order to succeed in the American market.