Xiaomi: A Chinese Startup Out To Challenge Google, Amazon

Xiaomi: A Chinese Startup Out To Challenge Google, Amazon.

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Xiaomi, a Chinese cellphone maker that helped pioneer the trend toward ultra-low-priced smartphones, is preparing for what would possibly be the biggest tech initial public offering since e-commerce giant Alibaba’s in 2014.

The 8-year-old is a star among Chinese unicorns, a term that refers to startup companies that are valued at more than $1 billion. It has a dedicated Chinese fan base and its media-savvy leader is an Asian celebrity. But it is untested outside the region.

Can a Chinese company be cool outside Asia? Can Xiaomi achieve its goal of expanding beyond hardware to be an internet service company?

A guide to Xiaomi and its upcoming IPO in Hong Kong:

WHERE DID XIAOMI COME FROM?

Xiaomi — pronounced “SHEE-YOW’-mee” — was founded in 2010 by CEO Jun Lei and seven colleagues who included veterans of Alphabet Inc.’s Google, Microsoft Corp. and Motorola Inc.

Their first smartphone, the Mi1 released in 2011, was an instant hit with little marketing. Consumers buzzed about its low price of 1,999 yuan ($305) and competitive quality.

It helped to ignite an unusual fan culture on which Xiaomi has built its product development. Customers take part in design decisions by sending suggestions over social media.

In 2013, Xiaomi sold more handsets in China than Apple. The next year, it became China’s topselling smartphone.

The company later was passed in sales volume by local rivals Huawei, Oppo and Vivo. But after a slump in 2016, Xiaomi’s growth rate outpaced other smartphone makers in the following year. While Samsung, Apple and Huawei saw flat or 10 percent growth or less in 2017, Xiaomi sales jumped 58 percent, according to IHS.