The fourth largest smartphone manufacturer in the world, Xiaomi was founded by Lei Jun along and Lin Bin in the year 2010. The company released its first smartphone in the month of August 2011, and it went on to become the largest manufacturer of smartphones in China in the year 2014. Further, due to high demand of Xiaomi mobiles, the company was ranked fourth largest smartphone maker by the end of first quarter of 2018.
About the Founder
Born on the sixteenth of December 1969; Lei Jun is the lesser known founder of the fourth biggest mobile phone manufacturer on the planet – Xiaomi Inc.
At present, with an expected total assets of $13.3 Billion, Lei goes about as the CEO and Chairman of the of the $45 billion valuation organization, and in the wake of making a few world changing and innovation driven organizations, Lei is regularly alluded to as the ‘Steve Jobs’ of China also.
How Xiomi Was Formed
Presently around the year 2010 and since some time, Lei was wanting to start a business which could get him the ideal position into the fast-evolving mobile phone world. Yet, to do as such he required a team. He frequently is advised to get together with individuals you know, however with a generally conviction, he wants to cooperate with the best individuals. Subsequently, he turned to the Ex-Googler – Bin Lin for help. With a confirmed understanding from Lin, he moved ahead with the idea of creating Xiaomi.
The following stage was funds. At that time, The Hong Kong billionaire Chan that controls Hang Lung Properties that sponsored Morningside Ventures, had been ordinary financial specialists in Lei since years. Also, keeping up the confidence, they chose to back him again as well! Aside from the Chans, Lei additionally gotten capital from, venture firms Qiming, Ceyuan, IDG Capital Partners, and others.
Also, with that Xiaomi alongside eight cofounders including Liu De, Hong Feng, Zhou Guangping, Chuan Wang, Li Wanqiang, and Kong-Kat Wong was officially established on the sixth of April 2010.
History and Funding
Xiaomi simply managed to take the hardware and mobile world by surprise in 2014. Their flagship mobile phone, Mi4 was a standout amongst the top of the line smartphones in history and cleared the way for mid-level mobile phones and their market base.
The organization was established by eight accomplices in the year 2010 and was subsidized by a Singapore based speculation bunch called Temasek Holdings and Chinese financial capitalists called IDG Capital alongside Qiming Venture Partners. They were one of the first organizations that were supported by core mobile organizations, Qualcomm. Xiaomi keeps on utilizing their processors for their mobiles even today.
One of the main devices that Xiaomi made available was Mi2. This was the first device that included the progressive and well-known Qualcomm Snapdragon chip. The device sold near 10 million units inside the initial 11 months of its origin, hence permitting Xiaomi to pick up a solid footing in popular markets, for example, Australia, United States, Europe and New Zealand.
The Growth and Success of the Brand Xiaomi
With the humongous achievement of the main adaptation Xiaomi Mi1′, Mi-2 mobile phones were sold in a much increasingly more extensive territory, and with the assistance of wireless phone seller Mobicity, the organization proceeded to catch the Western market including – United States, Europe, United Kingdom, Australia and New Zealand.
Their demand and reach of Xiaomi was to such an extent that the organization had sold more than 26 million mobile phones in the first half of 2014 and in simply a time of 4 years, the organization with its development had taken over Samsung to turned into China’s driving mobile phone seller in the second quarter of 2014. With a total assets of $9.9 billion, Lei had now turned into the eighth richest individual in China.
Xiaomi Captured Indian Market by Storm
Afterward, around the mid of 2014, Xiaomi likewise entered the tremendous undiscovered market of India. Lie Jun entered the market by solely tying up with India’s biggest E-business site – Flipkart. Their effect in India was with the end goal that, they were sold out in the initial 24 seconds itself. They sold 40,000 mobile phones altogether. That is the point at which, the organization chose to extended quickly in India and in the long run likewise joined forces with other E-business pioneers like Amazon.com and Snapdeal too. What’s more, with the finish of year, in the wake of getting $1.1 billion in financing and Xiaomi turned into the world’s most profitable technology start-up with a valuation more than $46 billion.
Xiomi Business and Revenue Model
In selling a mobile phone, Xiaomi utilizes a one of a kind system that dissimilar to the market pattern. The organization has set the costs of their phones about at the cost value, that too without trading off the quality and execution.
To additionally decrease their expenses, Xiaomi utilizes the online medium solely to sell its items and not at all like its rivals does not claim a solitary physical store. What’s more is that, to keeping a severe command over its stock, Xiaomi offers constrained accessibility streak deals which ensures that supply never crosses the interest and keeps the market buzz on an unequalled high.
The purposes for the immense accomplishment of Xiaomi is because of their distinctive methodology as far as advertising and strategizing that fluctuates from goliaths, for example, Samsung and Apple. They can sell their items at nearly the market building cost and to make up for the short overall revenue, they enable the item to stay in the market for near year and a half. In examination, Samsung stops generation following a half year of discharge.
Xiaomi additionally records shopper input as one of their significant zones where they center to ensure that items are constantly attractive. Likewise, they don’t claim any physical stores the world over and want to sell their items from an elite online store, further diminishing the costs that they would have brought about something else. This alongside a practically free advertising buzz made by their quality is the purpose behind their gigantic achievement worldwide.
The Growth and Future of Xiomi
Since its dispatch in simply an issue of 5 years, Xiaomi has developed on to turned into world’s fourth biggest mobile phone manufacturer, which presently likewise structures, creates, and sells mobile phones, versatile applications, and related shopper hardware. Since Xiaomi has figured out how to break the world record for “most mobile phones sold on a single online platform in 24 hours”, their venture into the undiscovered Indian market has additionally turned out to be truly interesting and aggressive.
So far Xiaomi has entered in majority of the countries of the world. The company is scaling up the operations consistently and it is looking to becoming the largest manufacturer of mobile phones in the world in coming future.