Xiaomi is the new kid on the block taking the smartphone landscape by storm; much to the discomfort of the likes of Apple Inc. (NASDAQ:AAPL) and Samsung. During an interview on CNBC, Oppenheimer’s, Andrew Uerkwitz, reiterated that Xiaomi will not pose any threat to Apple based on the fact that both companies target different market places.
Xiaomi remains one of the fastest growing smartphone companies in the world with products that specifically target mass-market in terms of pricing.
“Xiaomi sweet spot is on hardware. Its phones are priced at around $300-$350 and then below that. Apple Inc. (NASDAQ:AAPL) should not be worried about Xiaomi at this point, but Names like LG Huawei Lenovo Samsung should be very worried about Xiaomi, who has been taking share over the past four years,” said Mr. Uerkwitz
The fact that the Chinese sensation has resorted to targeting emerging markets with affordable gadgets continues to work to its advantage compared to Apple Inc. (NASDAQ:AAPL) devices that are usually considered expensive in emerging markets
Xiaomi is a private company with a big cash balance at its disposal that it is willing to spend having already allocated $1 billion for video content. In one way or another the Chinese company is seen to have taken a leaf out of Apple Inc. (NASDAQ:AAPL)’s playbook as it continues to copy everything that the Cupertino-based company has always done as one of the strategies of spearheading growth. Future growth on the smartphone landscape is to be achieved in untapped emerging markets that Xiaomi has resorted to focusing on.
“Xiaomi has their own software system they have been spending a lot of money building up a large ecosystem. The longer term absolutely, you start to think about email services app stores. Xiaomi as much as I don’t like to say it they are copying Apple Inc. (NASDAQ:AAPL) almost to the teeth. That is going to be a threat not in the U.S not in Europe, but in some of these developing market that they can’t afford the $600-$700 iPhone,” said Mr. Uerkwitz.
Apple Inc. (NASDAQ:AAPL)’s performance in the stock market has always depended on the sale of iPhones and will likely hope that Xiaomi does not interfere with its already established market places if the same growth is to be achieved.
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