But Xiaomi is going to put Apple out of business because of Xiaomi's huge low-end market share in China. Yes, Apple better watch out for a company selling smartphones with bone-scraping margins.
/s
I'm not sure what type of idiots are running Wall Street but they're extremely ignorant people if they really believe that market share is everything. I don't think that Xiaomi is even trying to compete on the same level with Apple but you've got these media freaks always trying to make a big deal out of every company that has similar products to Apple. I wouldn't doubt that a few combined Apple retail stores make more than Xiaomi does in a year.
I honestly don't see how the smartphone industry can be sustainable with over 60 companies... but only 2 or 3 actually making money.
Are there any other industries that have many players but so few making money?
I honestly don't see how it can be sustainable, either. It certainly can't be worth the effort. They're all running some form of Android, so what could possibly differentiate them from one another except for some minor cosmetic differences in IU and construction. Their production runs must likely be in the thousands of units for fear of being stuck with inventory. It scares me just to think of walking into a retail store and trying to pick through all those devices. The specs and features must be overwhelming to choose with reason.
"Taiwan's National Communications Commission found that two models of mainland China-made smart phones were transmitting data to servers overseas "many of which are in China", creating what Taiwanese media described as a 'security risk'."
Every cell phone, including any dumb phone, sends some data to the manufacturer's server from time to time. Xiaomi may not have a server in Taiwai. So, the data has to be sent to a server in mainland China. But, I am sure Xiaomi can prevent this bad publicity by having a server in Taiwai.
I am not saying that Xiaomi is or isn't an arm of the Chinese government. I don't know the truth either way. I just want to point it out the technical inevitability for each cell phone to send data to the manufacturer. I am sure my iPhone sends some data to Apple, no matter which country I live in. This doesn't make Apple an arm of the US government, right?
What analysts and pundits don't understand about mobile is: Apple as a status symbol.
After years of making a best-in-class product, the iPhone and iPad have both become status symbols for being the best. Add to that their design and sense of style, and you have a status symbol that's desirable, and most importantly accessible, everywhere from the Ghetto to Monaco.
There is no profit in selling tech to the mass market in the third world. It's not a put down, it's just the way it is. This is not anything new. Tech in the third world uses older (i.e. non-exclusive) technology and shameless copying with poor IP protection selling to the most value-conscious customers, which means a race to the bottom that is more vicious than anywhere else in the world. On top of that, nobody wants to pay for services, closing off another avenue for profit. Anyone claiming to be a business writer who was then taken by Xiaomi's dog and pony show should be ashamed of him or herself.
Could someone, seriously, explain to me how a Chinese knock-off with Android is in any way a 'threat' to Apple, please? I shall now seriously consider the implications of swapping from iOS to Xandriomi...
None of the apps, music of movies I've bought transfer over.
None of my privacy is assured.
Strange error messages that pop up in Chinese.
A great looking phone that looks like the iPh5...
...with specs that don't run games as well as the iPh5
Google has all my data to share with its friends.
And this thing will never get updates, ever.
HUGE threat. GIGANTIC even! Of making Apple laugh themselves silly, perhaps.
And this article fails to mention that most of the cash Xiaomi functions on is through government subsidies. I suspect profit figures will have "-"'s all attached to them otherwise...
A Chinese knock-off with Android is a 'threat' to Apple by the same means that Marvel's Squirrel Girl is a threat to Deadpool, Dr. Doom, MODOK, Thanos and Wolverine.
I watched a Xiaomi Keynote, as I was thinking it was great a new company was trying hard.
But then the guy running the show is wearing a blue t-shirt, and I thought, 'Oh'.
And then they even copied Apple's fonts and graphics from its keynotes: 'WTF'.
And then the chamfered edges came out, and the presenter guy is sweating, and I gave up, cursing Xiaomi the same whay I did Samsung.
Creativity isn't something that can be replicated, and I think X and S may be entering the reality of that statement.
You forgot the best bit. They also did..."and One More Thing!"
It's just fuggly.
Apparently, we need to have someone reliable & credible investigate
the crap coming out of the WSJ...
perhaps the New York Times could help out? Consumer Reports?
All organizations cited have had problematic reporting or questionable results previously.
It may only be $56 million but it is profit and for that reason it has a leg up on Amazon. At some point the current Xiaomi cheap knockoff becomes as good as the Apple phone of one or two years ago and at some point it is good enough for most. Xiaomi will continue to take Samsung sales. After they chew up Samsung, Xiaomi and Apple are the major players. Then what? Xiaomi is something to keep an eye on.
Comments
But Xiaomi is going to put Apple out of business because of Xiaomi's huge low-end market share in China. Yes, Apple better watch out for a company selling smartphones with bone-scraping margins.
/s
I'm not sure what type of idiots are running Wall Street but they're extremely ignorant people if they really believe that market share is everything. I don't think that Xiaomi is even trying to compete on the same level with Apple but you've got these media freaks always trying to make a big deal out of every company that has similar products to Apple. I wouldn't doubt that a few combined Apple retail stores make more than Xiaomi does in a year.
Well that's bad news for Xiaomi... and Samsung has certainly seen better days. Apple seems to be doing well, though.
So what about the other 60 smartphone manufacturers?
Acer, Alcatel, AllWinnner, Amazon, Asus, Blackberry, BLU, Celkon, Coolpad, Cubot, Dell, Evolio, G-Tide, Gigabyte, Gionee, Google, Goophone, Haier, Hike, HP, HTC, Huawei, iBall, Infinix, InnJoo, Intex, iOcean, Jiake, Jiayu, Jivi, Jolla, Kabonn, Karbonn, Kingzone, Kyocera, Lava, Lenovo, LG, Meizu, Micromax, MLais, Motorola, Neken, Nokia, OnePlus, Oppo, Opsson, Panasonic, Solo, Sony, Spice, Star, TCL, Tecno, THL, Umi, Vertu, Vivo, Voto, Xolo, Zopo, ZTE
Any good news for them?
I honestly don't see how the smartphone industry can be sustainable with over 60 companies... but only 2 or 3 actually making money.
Are there any other industries that have many players but so few making money?
I honestly don't see how it can be sustainable, either. It certainly can't be worth the effort. They're all running some form of Android, so what could possibly differentiate them from one another except for some minor cosmetic differences in IU and construction. Their production runs must likely be in the thousands of units for fear of being stuck with inventory. It scares me just to think of walking into a retail store and trying to pick through all those devices. The specs and features must be overwhelming to choose with reason.
"Taiwan's National Communications Commission found that two models of mainland China-made smart phones were transmitting data to servers overseas "many of which are in China", creating what Taiwanese media described as a 'security risk'."
Every cell phone, including any dumb phone, sends some data to the manufacturer's server from time to time. Xiaomi may not have a server in Taiwai. So, the data has to be sent to a server in mainland China. But, I am sure Xiaomi can prevent this bad publicity by having a server in Taiwai.
I am not saying that Xiaomi is or isn't an arm of the Chinese government. I don't know the truth either way. I just want to point it out the technical inevitability for each cell phone to send data to the manufacturer. I am sure my iPhone sends some data to Apple, no matter which country I live in. This doesn't make Apple an arm of the US government, right?
Yes. The oil industry! Ha ha ha ha ha ha!
The cost of doing business in ChIna.
What analysts and pundits don't understand about mobile is: Apple as a status symbol.
After years of making a best-in-class product, the iPhone and iPad have both become status symbols for being the best. Add to that their design and sense of style, and you have a status symbol that's desirable, and most importantly accessible, everywhere from the Ghetto to Monaco.
I wrote about this last week - A Billionaire's Phone: http://halifaxbloggers.ca/straighttech/2014/12/billionaires-phone/
Is this story another exampe of the WSJ publishing crap initially, then more crap with their follow up report ?
Of course a China company can publish anything the China Gov wants it to;
so perhaps the WSJ should be more careful on reports from China companies.
My guess it was lost in currency conversion;-)
Xiaomi sure showed me the money.
There is no profit in selling tech to the mass market in the third world. It's not a put down, it's just the way it is. This is not anything new. Tech in the third world uses older (i.e. non-exclusive) technology and shameless copying with poor IP protection selling to the most value-conscious customers, which means a race to the bottom that is more vicious than anywhere else in the world. On top of that, nobody wants to pay for services, closing off another avenue for profit. Anyone claiming to be a business writer who was then taken by Xiaomi's dog and pony show should be ashamed of him or herself.
A Chinese knock-off with Android is a 'threat' to Apple by the same means that Marvel's Squirrel Girl is a threat to Deadpool, Dr. Doom, MODOK, Thanos and Wolverine.
Now he's stuck in the tech-equivalent of Siberia.
Apparently, we need to have someone reliable & credible investigate
the crap coming out of the WSJ...
perhaps the New York Times could help out? Consumer Reports?
Thanks for pointing that out.
Microsoft acquired Nokia's handset business, but won't use the Nokia brand. So replace Nokia with Microsoft, the latter produces the Lumia now.
You forgot the best bit. They also did..."and One More Thing!"
It's just fuggly.
All organizations cited have had problematic reporting or questionable results previously.
It may only be $56 million but it is profit and for that reason it has a leg up on Amazon. At some point the current Xiaomi cheap knockoff becomes as good as the Apple phone of one or two years ago and at some point it is good enough for most. Xiaomi will continue to take Samsung sales. After they chew up Samsung, Xiaomi and Apple are the major players. Then what? Xiaomi is something to keep an eye on.