Chinese giant Xiaomi, the smartphone maker which is headed by a man referred to as the Steve Jobs of China, is all set to enter the Indian market.
According to people with direct knowledge of the matter, the company plans to set up an office in the country, and also partner with telecom companies to sell the devices. This will also be done alongside selling the phones directly through the company’s e-commerce platform.
Selling phones through online platforms such as Flipkart have become a hit in the Indian smartphone market, with companies such as Motorola using it to good success. Xiaomi’s proposed entry comes on the heels of other Chinese rivals such as Gionee and Oppo, who have recently entered the Indian market.
The company has a curious business model. It sells its phones at a very low cost. But it recoups its money by offering services such as mobile applications and movies via its software, which is based on Google’s Android operating system.
Its classic Mi3 phones have led to the formation of a cult personality around the company’s founder, Lei Jun, who is often compared to Apple co-founder Steve Jobs.
In a recent media interview, Hugo Barra, Global Vice-President, Xiaomi, pointed out that the company would not start the market’s low-end, but instead produce “aggressively priced phones focused on performance and quality.”
The company will also not be making a Firefox OS or Ubuntu handset, but instead will focus on the Android smartphone market.
“When Xiaomi enters India, it will have its work cut out for it. Not only does it have to contend with biggies such as Lenovo or Samsung, it also has to worry about the Indian low-end, which consists of players such as Micromax or Karbonn,” said an industry executive. “Whether it can break out of being just a niche category player remains to be seen,” the executive added.
