Why Apple Inc. (AAPL) Should Feel Threatened By Xiaomi?

The prospects of Chinese sensation Xiaomi, rivalling Apple Inc. (NASDAQ:AAPL) in the international landscape continues to be a point of concern a number of investors. The company has already surpassed Apple and Samsung in terms of market-share in China awaiting to see if it can replicate the same success on the international front. During an interview on CNBC, JMP Securities analyst, Alex Gauna, reiterated that Apple will have to pay a closer watch on Xiaomi going forward as competition is poised to be stiff.

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“I think it is a bit early to be overly concerned about Xiaomi you certainly have to be paying attention to it. It has gone to nowhere in the smartphone leaderboards to number one in China today. Growing at a hyper rate speed right now putting out great products so Apple Inc. (NASDAQ:AAPL) definitely has to pay attention to what Xiaomi is doing,” said Mr. Gauna.

Competing against Apple Inc. (NASDAQ:AAPL) in the U.S. is sure to be a tall order for Xiaomi considering the brand loyalty that the Cupertino-based company enjoys. On the other hand, in emerging markets of India and Indonesia, it is sure to be a fierce battle with Xiaomi thought to be holding an advantage attributed to its pricing strategy.

The bar remains very high in terms of devices designs something that Xiaomi is trying to gain an advantage against Apple Inc. (NASDAQ:AAPL). The release of Xiaomi latest flagship smartphone is a clear indication that it has the potential to rival Apple even in well-developed markets according to Gauna.

It used to be a two-horse race in the high-end smartphone marketplace pitying Apple Inc. (NASDAQ:AAPL) and Samsung but in the recent past, Xiaomi has highlighted its credentials with signs it could be the next big thing.

“In China Xiaomi certainly has some home field advantage but I don’t think it is necessarily a stretch to think that Xiaomi couldn’t compete with Apple Inc. (NASDAQ:AAPL) on the international stage. Xiaomi has a very good chance of becoming the next Samsung in Smartphones it got some great manufacturing advantages. It is showing some incredible marketing Savvy so I wouldn’t put them out of the running on the global sense by any measure,” said Mr. Gauna.

It waits to be seen according CNBC’s, Dan Nathan, how Apple Inc. (NASDAQ:AAPL) will respond in terms of design with its next smartphone probably, iPhone 6S having been outdone with Xiaomi on the Camera front. What Samsung plans to do with S6 also remains to be seen.

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