Monday , October 3 2022

China's Xiaomi enters the United Kingdom by telephones, wristbands and scooters


Xiaomi Mi 8 ProImage rights

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The Xiaomi Mi 8 Pro is distinguished by its transparent glass back

Xiaomi – the world's fourth-largest mobile phone maker – has added the UK to the growing list of markets.

The original Chinese company's composition for the country includes three smartphones, a wrist-track tracking wristband and an electric scooter.

It also opens a store at London's Westfield Shepherd's Bush shopping center, which also has an Apple store.

The launch expands its presence in Western Europe, where it also operates in Spain, France and Italy.

Xiaomi has a reputation for the competitive pricing of its products and seeks to maximize profits by giving priority to increasing sales versus profit.

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Getty Images

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The Xiaomi electric scooter will be released in the UK, although it can not be legally used along roads or in other public areas

Earlier this year, it said it would limit the net profit margin of hardware products to 5 percent, suggesting that the move would help customers to believe it was a brand that they could trust.

According to IDC of the market research company, only Huawei's smartphone sales outperform the growth rate among major manufacturers.

Company Smart Phone Shipments July-September Yearly change of missions Current market share
Samsung 72.2 million -13.4% 20.3%
Huawei EUR 52.0 million 32.9% 14.6%
apple 49.9 million 0.5% 13.2%
Xiaomi 34.3 million 21.2% 9.7%
Oppo 29.9 million -2.1% 8.4%
Others EUR 119.9 million -19.9% 33.8%
Total EUR 355.2 million -6.0% 100.0%

Source: IDC – based on preliminary data

The original Xiaomi mobile phone for the UK will be the Mi 8 Pro – an Android mobile phone with a fingerprint sensor hidden behind the 6.2-inch screen (15.7 cm) and a transparent glass back through some of its elements can be viewed.

It will start at £ 499. This is significantly lower than the cost of the premium models sold in the country by Apple, Samsung, HTC, Sony and Huawei, but it fits the value of the new OnePlus 6T.

Co-founder Xiang Wang told the BBC that Xiaomi plans to expand its product range to the United Kingdom in 2019 and could also launch the Poco sub-brand.

And while he said his company is not currently planning to keep one of the famous "flash sales" in the country – which sells limited quantities of a new device at a set time – said they could be offered at a later date help raise awareness.

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Xiaomi has more than 100 stores in China and aims to have 1,000 by 2020

"When Xiaomi enters a country, it almost always grows very fast," commented Neil Mawston, Strategy Analytics.

"This has happened in India, Indonesia and Russia, and we are now seeing growing rapidly in Spain.

"Those most at risk of losing sales in the UK include Samsung, Huawei, TCL Alcatel, LG and ZTE – Apple is rather safe because it is playing in much higher price ranges."

Another expert added that it would be wrong to focus exclusively on the smartphone ambitions.

"It's jaw-dropping the amount of Xiaomi's products," said Ben Wood, from CCS Insight consultants.

"When you go to one of its stores in Hong Kong, it's incredible – there are everything from the robot vacuum cleaners to smart lamps to clean the air in electric toothbrushes.

"But the big question for me is whether this is a market too far as there is already an unprecedented level of competitive intensity here, especially among smartphones."

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CCS Insight

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Xiaomi's launch in the UK marks its entry into a fourth Western European market

However, a third analyst said the Chinese company may have taken the perfect time to participate in the failure.

"Following the departure of the United Kingdom from the European Union, we can observe that consumers repeat discriminatory costs, thus lowering the average selling price," said James Smith from Futuresource Consulting.

"If the consumer wallet is pressed … we can see the growing demand for mid-range mobile phones, a market in which Xiaomi has a very strong offer."

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