Tuesday 14 October 2014

Xiaomi hires ex-Googleexecutive to lead push intoIndia

Chinese smartphone maker Xiaomi has hired a former
Google executive to help drive its push into India , as
the company ramps up efforts to expand into new
markets and replicate its success at home.
The fast-growing company has recruited Jai Mani to be
lead product manager for India, the world’s third-
largest smartphone market, Hugo Barra, vice-president
of international operations and himself a former Google
executive, announced on Monday.
The appointment underlines Xiaomi’s aggressive growth
strategy , which has seen it become one of the largest
smartphone sellers in China, recording 240 per cent
year-on-year growth, according to Canalys, the
research group.
Xiaomi phones have achieved an almost cult-like status
in the world’s largest smartphone market, where it
overtook Apple in sales last year and is vying with
Samsung for top spot.
Its devices have the look and feel of iPhones but
analysts say the real selling point is the price –
Xiaomi’s phones sell for a third to a fifth of the price.
“They are positioning as the affordable Apple,” said CK
Lu, analyst at Gartner, the tech consultancy.
Earlier this year, Xiaomi announced plans to begin
marketing its phones abroad, with a move into 10
foreign countries including Brazil, Indonesia, Mexico
and Malaysia. The company has not disclosed any
details of international sales.
The privately held group was valued at $10bn during
its last fundraising round in 2013, and launched in
India , the world’s fastest-growing smartphone market,
in July. At the time, co-founder Lin Bin said Asia’s
third-largest economy would be “probably the most
important” for the company.
India’s smartphone market grew 84 per cent year-on-
year in the second quarter of this year, according to
IDC, with vendors shipping 18.42m handsets.
In particular, low-end smartphone sales are increasing
rapidly as India’s 650m mobile phone users upgrade
their handsets to access everything from social media to
the latest cricket scores.
Xiaomi is “for the cost-conscious consumer so it would
be very successful for the Indian market”, explained
Jessica Kwee, analyst at Canalys. “Their growth
trajectory in India is going to be quite significant in
these first few quarters.”
The company’s push into India could prove especially
tricky for Samsung, the world’s largest smartphone
maker by sales, which has already been hit hard by
increased competition from Chinese manufacturers
such as Xiaomi, Huawei and Lenovo. In India, the
South Korean group is the market leader with a 29 per
cent share, but local manufacturers such as Karbonn
and Micromax are also gaining ground, with 8 and 18
per cent market share respectively.
Xiaomi is “still a new player but then again it has
grown from scratch”, added Ms Kwee.
Mr Barra, who led the Google Android product team
and oversaw development of the operating system and
the apps that run on it, joined Xiaomi in August 2013.
His recruitment was seen as a coup for the company as
it launched internationally.
“Android fans: you’ll remember Jai from his
memorable onstage demo performances at Google I/O
and Nexus launches,” he wrote on his Googleplus
account.

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