Xiaomi Might Possibly Expand in the US Soon

Xiaomi which is one of the biggest smartphone manufacturers in the world is planning to extend the expansion of the company in the west. There are reports that the United States smartphone market is the next target of the Chinese gadget company.

The Chinese Company

The hardware of this smartphone is available already in more than 70 countries that are spread around Africa, Asia and some parts of Europe like the country of Spain. By the end of the year of 2017, this Beijing-based company becomes the fourth largest smartphone vendor in China which is right behind the Vivo, Oppo, and Huawei. At the same time, there are increased in the shipment of the phone globally which is by 83%.

The company could possibly bring the smartphone of them to the United States as early as the end of 2018. According to Lei Jun, the Xiaomi Chairman, at the sidelines of the annual legislative of Chin in Beijing, they are always considering the idea of entering the United States market and they are planning to start in entering the market by the end of 2018 or by the early of the year of 2019.

A few years ago, the company already began selling many accessories in America and other parts of the Western Markets. The company already sells a number of their products that is internet-connected devices in the United States such as cameras, speakers and electronic scales like the Android TV set-up box and Mi TV. They are also started to sell two models of headphone, a 360-degree camera, a battery pack and also a robot coding kit but they do not still formally sell smartphones which could be a real challenge. There are dominant established brands already in the Western countries like the Apple Inc. and the Samsung Electronics Co. that are dominant and a competition for the smartphone.

What they need to do

The company needs to form a partnership with the gatekeepers of the market which is the telecommunication carriers. The success of the company will ultimately depend on theses telecommunication carriers. Another Chinese smartphone maker which is called ZTE has already partnered with the carriers in the United State and that leads to a healthy share of the market. Thanks to a partnership with the domestic carriers, the ZTE Corp. becomes the number 4 to be a smartphone vendor in the United States last year with an 11% of the market.

The company also should navigate potential concerns from the intelligence officials in the United States like the NSA, CIA, and FBI. The heads of these intelligence officials just recently warned the citizens and the public that they should not use services and products that are made by the ZTE and Huawei. Back in 2014, the Huawei has been banned from bidding in the government of the United States. Because of that, the Huawei has struggled in making an impact in the smartphone market in the United States.

The company of Xiaomi is planning to raise at least $10 billion in the Hong Kong IPO which is possibly in the second half of this year. Because of that, the offering of them will possibly become one of the biggest offerings of the year 2018. The company is targeting a valuation that is from $80 billion and $100 billion which is a sizable jump from the valuation that is $46 billion that the company received in the recent private fundraising in the year of 2014.


We have seen Chinese companies like the ZTE and the Huawei that got pushback from the government of the United States which gives the Xiaomi a push to have an effort in order to flourish in the market of the United States. The company may have been keen on avoiding the similar scenario which could be the reason that they are taking the slow approach in the United States market.