Xiaomi is the fourth largest smartphone maker in the world behind Samsung, Apple, and Lenovo. It was founded in 2010 in Beijing, China as a software company but began producing smartphones in 2011. Since then, it has experienced rapid growth, selling over 18 million phones in 2013. Xiaomi follows a low-cost business model by keeping bills of material low through an online-only sales model with minimal advertising and physical stores. This allows it to price phones competitively compared to Samsung and Apple despite similar or higher specifications.

1. Xiaomi
小米科技
Alan Kong(lingkong)

2. Who?
How many of you have heard of Xiaomi?

3. Products & Info
● FOURTH LARGEST (briefly 3rd) smartphone maker
in the world (behind Samsung, Apple, Lenovo)
● Mobile apps & other consumer electronics
● Based in Beijing, China

7. Financials
● Private
● Employees: over 3,000
● Revenue (2013): ~$5 Billion

9. History
● 2010 April: Founded by Lei Jun
● Originally a software company
● 2011: Released first phone
● 2012: 7.2m phones
● 2013 Aug: Hugo Barra VP
● 2013: 18.7m phones
● 2014: 11m first quarter

10. What’s Hot?
● Global expansion
● Low-cost approach
● Privacy

11. Secret Sauce
Bill-of-material Price
(similar to Amazon)

12. Phone Xiaomi Mi4 Galaxy S5 Sony Xperia Z2 HTC M8 iPhone 6
CPU
Qualcomm
Snapdragon
801@2.5Ghz
(Quad)
Qualcomm
Snapdragon
801@2.5Ghz
(Quad)
Qualcomm
Snapdragon
801@2.5Ghz
(Quad)
Qualcomm
Snapdragon
801@2.5Ghz
(Quad)
A8 chip with
64-bit, M8
motion
coprocessor
RAM 3G 2G 3G 2G 1G
Price (China) $400 $815 $650 $650 $900

13. Bill-of-Material
● SERVICES not profit margins
● 18 months instead of 6 months
● Almost no physical stores
● Almost no traditional advertising

14. Story

15. Competitors
● Apple
● Samsung
● HTC
● Lenovo
● LG

16. Buy or Sell
BUY, BUY A LOT!

17. Questions?