Xiaomi released its first smartphone in August 2011 and has rapidly gained market share in China to become China's largest smartphone company in 2014.[4] As of the start of Q2 of 2018, Xiaomi is the world's 4th largest smartphone manufacturer.[5][6][7] Xiaomi has expanded into developing a wider range of consumer electronics, including a smart home (IoT) device ecosystem.[8][9][10][11]
Xiaomi has 15,000 employees[12] in China, India, Malaysia,[13] Singapore and is expanding to other countries such as Indonesia, the Philippines, and South Africa.[14][15] According to Forbes, Lei Jun, the founder and CEO, has an estimated net worth of US$12.5 billion.[16] He is China's 11th richest person and 118th in the world.[16] Xiaomi is the world's 4th most valuable technology start-up after receiving US$1.1 billion funding from investors, making Xiaomi's valuation more than US$46 billion.[17]
Xiaomi has produced many products. Notably, it produces smartphones which run on their own version of Android MIUI firmware. Observers suggest that part of Xiaomi's rapid success rests on its ability to differentiate itself within the Android universe.[18][need quotation to verify] The company has established its own ecosystem by increasingly offering a wide range of products. Its varying lines of smartphones include: Mi Series, Mi Note Series, Mi Max Series, Mi Mix Series and the Redmi Series. As well as mobile phones, Xiaomi has started selling wearables, mobile accessories, and appliances such as television and speakers. It now also offers tablets, laptops, and smart-home devices - all available on its web store.
Xiaomi operates a vertically-integrated model, which is considered[by whom?] a pioneering approach that enables the company to sell hardware at or below cost in order to attract users and augment potential financial shortfall with recurring revenue generated from content.[18] Hugo Barra, a former Google executive who served Xiaomi's vice president from 2014 to 2017, characterized the organization as "an internet and a software company much more than a hardware company".[19]
Xiaomi also keeps its prices low or close to "bill-of-material" by keeping most of its products in the market longer - eighteen months rather than the six-month norm followed by smartphone companies.[19] This strategy allows Xiaomi to take advantage of price reductions in the prices of key components of its products. It enables the company to sell hardware with specifications comparable to high-end devices at a fraction of the cost.[20][need quotation to verify]
The company's version of the Android operating system, the MIUI skin, also drives the integration of the Xiaomi ecosystem. This platform, with its design, app marketplace, and functionalities, has established a community of engaged users,[18] who not only form a crucial part of Xiaomi's customer base, but also contribute to the company's drive to raise the market's awareness of its brand, products, and services. Also, the ecosystem is a massive source of revenue as indicated in 2015, when sales from the platform reached $750 million.[21]
The company's focuses on India, the world's second-largest smartphone market[22][23]. Xiaomi announced on May 2, 2018, the launch of Mi Music and Mi Video to offer "value-added internet services" in India to secure its position in one of its most important markets[24]. On March 22, 2017, Xiaomi announced that it planned to set up a second manufacturing unit in India in partnership with contract manufacturer Foxconn.[25][26] On August 7, 2018, Xiaomi announced on its blog[27] that Holitech Technology Co. Ltd., Xiaomi's top supplier, would invest up to $200 million over the next three years to set up a major new plant in India.[28]
