Xiaomi

Lore & Background

Lei Jun had previously worked as an executive at Kingsoft and was involved in founding Joyo.com, which was sold to Amazon for $75 million in 2004. By 2014, Xiaomi had the largest market share of smartphones sold in China. The company initially sold products only online but later opened brick-and-mortar stores. In 2014, it raised US$1.1 billion at a valuation of over US$45 billion, becoming one of the most valuable private technology companies in the world. Xiaomi expanded internationally, opening an international headquarters in Singapore in February 2014, and later entering markets such as India, Brazil, and the European Union. In June 2018, Xiaomi became a public company via an initial public offering on the Hong Kong Stock Exchange, raising $4.72 billion. By October 2020, it had become the third-largest smartphone maker in the world.

Reader's Guide

The company's strategy of keeping prices close to manufacturing costs, using inventory optimization and flash sales, and maintaining products in the market for 18 months allowed it to capture significant market share, particularly in China and India. Its ecosystem of consumer electronics, including smartphones, wearables, televisions, air purifiers, and electric vehicles, along with its Internet of Things and Xiaomi Smart Home product ecosystems, has made it a major player in technology.

Did You Know?

• Xiaomi purchased the domain name mi.com for a record US$3.6 million in April 2014, the most expensive domain name ever bought in China.
• Xiaomi's first foldable phone, the Mi Mix Fold, was launched in March 2021.