What Xiaomi has done wrong?

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Many have compared Xiaomi with Apple, not that obvious “inspiration” Cupertino products have contributed to a catalog of Chinese manufacturer. The company seemed to go directly to become one of the great mobility, with a valuation that exceeded the 45,000 million dollars in early 2015.

Things started thereafter: the enormous competition that Xiaomi has seen its own borders and its inability to take the final leap in international expansion that have made today its valuation is reduced to less than 4,000 million dollars. What has failed in one of the most striking technology companies recently? Have we tired of Xiaomi?

Fierce competition, also in China

As indicated in IBITimes, all seemed rosy for the company led by Lei Jun: investors were fighting for a piece of this giant that seemed to have everything well tied in China, and its product was (and is) to surprise by that remarkable quality / price ratio that differed from the competition.

what-xiaomi-has-done-wrongHowever, other manufacturers took advantage of the same philosophy applied by Xiaomi in China, and do it with innovations that the company still could not compete. Live devices offer curved screens, while Oppo and OnePlus out for their fast loading terminals and Huawei has pioneered the inclusion of dual cameras or fingerprint sensors then others have been incorporated.

Neil Shah, an analyst at CounterPoint Research indicated that competitors Xiaomi have “best R & D, manufacturing expertise in vertical segments, and greater geographic footprint for distribution. The inability of Xiaomi to innovate independently is another key point”. As indicated recently in Quartz, Xiaomi’s own strategy has had to change before the attack of its competitors, and have had to invest in marketing when they needed only before word of mouth.

The cushy products are no longer exclusive Xiaomi

The smartphone segment in which highlighting Xiaomi products “gravy train” – the My 5 is the last great example has also changed other manufacturers compete in a while with these proposals Xiaomi, and also make with these sales channels allow to find its official products for sale on the international level.

It does not seem that the means and input ranges in which also used to highlight their products go much better: competition in those segments is also brutal, and although products like redmi Note 3 remain outstanding bets for those seeking good terminals at prices adjusted, it has made among other things the launch of the My Note 2 weeks ago we expected has not occurred.

That catalog of products that appeal to price and performance goes beyond smartphones, of course. Xiaomi has expanded its offer and offering all kinds of solutions in the field of information technology and also in the appliances. Although the products attract attention, the company faces the problem of distribution. Interest in buying is evident -the My Notebook Air is one of the last examples – but found outside China is complicated on many occasions, as with his recent electric bike.

Xiaomi is still too Chinese

The international expansion of the company is a grimace. The terminals of the firm that generated much interest during its launch arrive with eyedropper to Western countries, and get them in stores that bring their own guarantees makes the price / performance ratio worse.

The yuan price advertised and the price achieved as the Spanish market is very different. Meanwhile competitors like OnePlus, Oppo or Huawei offer increasingly interesting for equally amazing prices terminals, and that has made Xiaomi faces serious problems in those ranges.

In that limited international expansion weigh, and much, threats by patents. Xiaomi is protected in their own country, but even in India, the second most relevant to the company market Jun, Xiaomi has faced lawsuits for violation of patents Ericsson. Despite having reached agreements with companies such as Microsoft and Qualcomm to prevent further demands in this and other countries, its jump to international markets seems unlikely: as do the demands probably put the company impossible things.

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