Solid smartphone base boosts Xiaomi’s CE business
How Xiaomi became the world’s third largest smartphone vendor in a matter of just four years is completely remarkable, to say the least.
Well, taking into perspective the fact that its founders grasped the flexibility and speed the Internet brings to the consumer electronics business, they’veVolumetric Efficiency mastered these elements to change the game in their favour. While the formula obviously worked in the smartphone business, the company has yet to prove whether it can be replicated in other consumer device segments.
Xiaomi’s online-driven business model is a well-told story.
The yet-untold story will emerge from the question of if the Beijing-based five-year old company can move beyond smartphones.
Xiaomi’s CEO Jun Lei went on the record, saying: “Xiaomi will duplicate the success of its smartphone business with more than 100 other devices.”
Textbook business-school investment strategies probably won’t cut it. After all, Xiaomi is no Google, at least not yet, who last year bought Nest for $3.2 billion in cash. Xiaomi isn’t big enough to hang its growth on M&As, organic growth or more rounds of funding from VCs in diversifying its product portfolio.
Bin Lin, Xiaomi president and co-founder
In a recent one-on-one interview, Bin Lin, president and co-founder of Xiaomi, explained how Xiaomi plans to expand its product portfolio beyond smartphones and the company’s investment strategy.
Although the “100” device categories Lei talked about might be a hyperbole, Xiaomi has thus far invested in some 39 companies, according to Lin. Some investments are in one-person start-ups. Others boast a sizeable engineering team of 100 or more.
Xiaomi have closely worked with these partners to define their products. Those already launched include smart TVs, routers, power banks, air purifiers, digital scales and smart wristbands.