China’s smartphone champion has triumphed where Apple failed

Xiaomi’s rise in the last few years has been dizzying. Only Apple and Samsung sell more smartphones worldwide. The company also sells a wide range of devices connected to hand devices from air conditioning and Robo-Vacuums to Scooters and TVs. In 2022, after a collapse attributed to “cut competition için for consumer electronics in China, Xiaomi returned to growth and his income increased by 35% last year. Since the beginning of 2024, the market value has reached almost four times, a $ 1.5 -hk ($ 190 billion; see the graph).

The second electric vehicle (home) after the SU7, the successful version of the YU7, was a sporty sedan – Xiaomi, which was released in March last year, has achieved a success that threw Apple, which issued its plans to burn billions of dollars for ten years. Explaining the ambitions of automobile production in 2021, Xiaomi has put more than 300,000 of its homes on Chinese roads for the last 15 months and has an accumulation of orders for more than a year to fill. Although the home section has lost money so far, Mr. Lei said that he thinks he would be profitable later this year, and China is an impressive success in the brutal competitive automobile market.

Xiaomi’s landscapes have world domination. In the coming years, it plans to open 10,000 stores abroad up to a few hundred last year, which will use it to show stylish new cars as well as consumer electronics. Can something stop its striking rise?

Xiaomi’s success in EVS continues to be partially in the right place at the right time. These days, China is shaken in the information of car construction; Mr. Lei was able to get the most talents from some other companies. Considering the excessive supply of both, parts and machinery prices fell. Approve and building a factory can be done much faster than other places in China.

However, Mr. Lei deserves plenty of loans. Inside, the insiders say that the company has personal control over the automobile production project, unlike Apple’s Tim Cook. Success required deep changes in the form of the company’s work. Before entering the homes, Xiaomi did not have factories; Like Apple, the production of phones and other devices is outdated. Nevertheless, he chose to build his own home factory in Beijing, where he has expanded to provide strict surveillance. Now he adopts his approach elsewhere: Last year, he began to produce smartphones in another facility in Beijing, and in Wuhan, he’s building a plant to build other affiliated devices starting from air conditioners.

Xiaomi’s marketing strategy, which is largely based on the cult of Mr. Lei in China, also helped to expand to Houses as Steve Jobs’s admiration helps Apple’s first iPhones sell its first iPhones. It is said that the University of Wuhan has enjoyed the interest rate hike thanks to the continuation of Bay Lei 30 years ago. “MI Fans”, as Diehard Xiaomi is known, collect company memories and race to take their hands to every new product. In March, Xiaomi managed to maintain even the excitement around his homes despite a terrible accident in which the company was killed in a SU7 with a pilot on a highway by the autonomous driving system. The chapter led to the criticism of Xiaomi’s security standards and a temporary sales in stocks, but they did not destroy the demand for the YU7 when it was started three months later.

It also helps Xiaomi to have a large customer base to use new products. At the end of last year, approximately 10% of their devices demanded 700 million monthly users in their devices compared to the previous year. Many of them play games purchased at the App Store of Xiaomi and view ads sold by the company (these produce half of the company’s total profit of a broker Bernstein). And a large share of users buys Xiaomi products directly from the application. The company mastered them to convince them to raise them to more expensive phones. It only needs a small part to buy a car to make an effort to be a great success. Most of Xiaomi’s Chinese customers were in the beginning of their 20s when they bought one of their first smartphones ten years ago. Now in the mid -30s, the target for Xiaomi’s homes is demographic.

Mr. Lei is looking beyond China. Almost half of the company’s income from smartphones and other connected devices comes from abroad in developing markets such as India and Indonesia. Mr. Lei wants Xiaomi to sell his homes abroad by 2027. These will probably not like a reception of the kind of reception they have at home: Xiaomi does not command the same brand loyalty in foreign markets, and a few overseas customer will hear Mr. Lei. This helps to explain why Xiaomi invests in creating a large brick and mortar stores network that needs to increase its profile.

At the same time, the company plans to continue to expand to new business lines. He developed his humanoid robot, Cyberone, and introduced the advanced three-nanometer chip designed in May. The roughly half of the personnel, 26% of the expenditures last year, work up to $ 3.4 billion than the company produced in net profit. Thought in business can improve productivity by developing technologies from scratch and increase obstacles to competition.

Perhaps the biggest risk for Xiaomi is that it fights on a lot of fronts, considering many products. The price war between Chinese home companies continues to intensify and Xiaomi continues to be a small player despite its growth. He currently sells about 20,000 cars per month, more than ten times for Sunday leader byd. The competition in smartphones is also warming up as Huawei, another Chinese technology giant, which was blocked by American sanctions in 2019. makes a return. Nevertheless, Mr. Lei’s sales will not be ignored.

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