Does Millet's success threaten Apple?

A dozen hours ago, the foreign media Fast Company and BGR have successively released two articles that are diametrically opposed. The former believes that Xiaomi is the biggest threat to Apple in the Chinese market, while the latter has expressed its opposition and believes that Xiaomi cannot afford to turn up in front of Apple. Big waves.

In recent days, Xiaomi, which started from mobile phones, has begun to expand its market scope with great efforts. Not only has it launched more models of mobile phones, but also involved chips, headphones, routers, audio, air purifiers, smart TVs, sports cameras, and wearables. In the fields of equipment, smart homes, and even rumors of flying UAVs, millet is also actively expanding its global market based on the Chinese domestic market, and has initially opened up markets in Southeast Asia. You know, only four years have passed since Xiaomi's first mobile phone was listed. Xiaomi’s achievements are enough to make people stand out and be called “miracle”.

However, due to issues such as patent licensing, Xiaomi's main business has not yet entered the developed countries, especially the European and American markets with market benchmark influence. According to research firm IDC, in the Chinese market, Xiaomi has already got the throne of mobile phone sales, third only to Samsung and Apple.

In the global market, according to Gartner's latest mobile phone market data for the second quarter of 2015. Xiaomi ranked fifth in market share with 4.9%, behind Samsung, Apple, Huawei and Lenovo. It needs to be mentioned that the sales of Xiaomi and Lenovo are too close, and the global market rankings of both may need to be adjusted.



The Fast Company, who believes Xiaomi has a lot to do, first pointed out that Xiaomi’s achievements have made Xiaomi himself an overwhelming company. In addition, it also pointed out that the reputation of Xiaomi in the West is not good, mainly because of the iPhone design "shameless plagiarism" and its application to "dirty low-cost mobile phones." As Jonathan Ive, the head of Apple's design department, said at the company’s conference in October last year: “I think this is stealing and it is lazy.”

However, despite these infamy and prejudice, Fast Company pointed out that Xiaomi’s marketing strategy is the key to its success. And millet has more and more personalized design in the new mobile phone, the future is likely to get rid of the problems of patent issues, although there are still many Apple's shadow on Xiaomi, it seems that the name "Reebs" is not called white of.

Xiaomi’s marketing strategy is to provide cost-effective mobile phones at a price close to the cost, while using the Internet and MIUI software to establish a good industry reputation and user stickiness. You know, Xiaomi's press conference was as much of a concern as Apple's conference.

And Xiaomi has been applying this marketing strategy to more products, including smart TVs and air purifiers. Similarly, Xiaomi's products have also been sought after. For example, the millet bracelet that has been launched for a year has already become the industry leader with a market record of over 6 million in total sales.

And Xiaomi's international market ambition should not be underestimated. While opening markets in Southeast Asia, such as India, Xiaomi is also actively deploying markets in Europe and America. The company has already sold mobile phone accessories in Europe and the United States; however, millet faces further expansion in developed countries. The only obstacle is the patent. Once the issue of the patent is resolved, Xiaomi will undoubtedly win more market share and even threaten Apple. Another mobile phone giant, Samsung, has already felt the pressure from Xiaomi.

According to Counterpoint Research, Xiaomi’s market share in China has reached 18%, while Samsung’s mobile phone sales are declining.

Ben Thompson, a well-known technology blogger, said that Xiaomi is a very technical and very geek company. But he believes that the millet model does not work in the United States. "In the United States, most geeks and enthusiasts can afford the iPhone."

Although Xiaomi has been actively planning to the high end, Xiaomi has been unable to escape the essence of low-end. The media BGR thinks this is the key reason that Xiaomi cannot shake Apple’s status.

Although Xiaomi’s previous performance is admirable, Xiaomi is using profit for the market. The profit of a single millet phone is far lower than that of an iPhone. And Xiaomi’s global expansion will also be aborted due to patent issues, and Xiaomi will eventually be forced to return home.



Therefore, if Xiaomi cannot beat Apple in China, how can it threaten the apple in the world? Moreover, many people believe that the millet model can be replicated. In fact, there have been many “followers” ​​in China’s mainland. Xiaomi’s pursuit of Apple also requires pressure from “followers”.

In addition to the mobile phone market, Apple is also actively seeking a more diverse layout, from Apple Music to the legendary self-driving car, from the Apple Watch to the smart home platform HomeKit, in addition, Apple also has a TV box and router. If Xiaomi can't realize the individualized functional design in his products, it is difficult to challenge Apple in more major market areas in the future with only low prices, and Apple will continue to suppress Xiaomi in the low-end market.

What do you think of Xiaomi’s prospects? Did the striding millet threaten Apple in the end, or will it be tempted to get the egg because the pace is too big? Anyway, no matter whether Xiaomi's successful function is maintained or not, Xiaomi's existing success has made it a model worthy of study.

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