Posted by Mariuca on 9/13/2013
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The 10th of September was the big release day for one of the biggest smartphone companies in the world. Apple released the new iPhone 5 S and iPhone 5 C. Everybody expected this day to see what novelties will bring the long expected smartphone, and Apple hopped that the sales will explode.
The big release for Apple came five days later after the release of the new Xiaomi in China. As everybody knows, one of the biggest iPhone buyers were the Chinese, therefore, when the new iPhone got on the market, Apple expected China to jump on the product. The disappointment was big, because the new smartphone did not stir among buyers. It looks like Xiaomi stole Apple buyers.
This company was founded in 2010, and the founder of the company, Lei Jun, seemed to have a small obsession with Steve Jobs. In just three years, Xiaomi grown into an “empire”, paving its way, and Apple is trying now to catch up.
Apple had an initial lead because it offered the best product, and the fact that the prices were really high didn’t matter, because nobody had other option. When Xiaomi appeared, although they “borrowed” some of Apple’s aesthetics, the marketing was completely different. An iPhone costs $800 in China, while Xiaomi’s phone is only $350, and besides all this, the CEO of the company told everyone that he didn’t even try to make money on the hardware.
Besides the price, Xiaomi’s product is really good and although it doesn’t have the metal and glass case that in the end cost $800, the phone is very simple to use and it works really smooth. That is why Apple decided to release a plastic case iPhone at a lower price, and they hope that it will increase the sales in China. The approach is interesting, but the market analysts say that is a little too late.
