Up-and-coming Chinese smartphone maker Xiaomi introduced itself to San Francisco press today, and said it would dip a toe into the U.S. market with a store selling headphones and fitness bands, but not phones or tablets.
Xiaomi has rocketed from zero just a few years ago to become the world's third-largest smartphone maker in the third quarter of 2014. According to research firm IDC, Xiaomi's 5.2 percent global market share is now bigger than either LG's or Lenovo's. The company is well known for making low-cost, relatively high-quality devices.
The company doesn't sell phones in any Western markets, though, and hiring former Google exec Hugo Barra in 2013 was seen as a potential way to move into developed countries.
TechCrunch live-blogged the Xiaomi press conference, and it's is worth reading if you want a complete recap.
But to recap the recap, Xiaomi offers weekly updates to its Android phone skin, which it calls MIUI. Android phones in China don't use Google services, so the Android spin-off ecosystem is a lot richer than it is here. MIUI looks a lot like iOS, but it's "designed for China" with customizations for Chinese languages, cultures, and names.
We spent some time with a prototype of Xiaomi's Mi3 phone last year and found that it had high-end specs for its $330 price, but felt flimsy.
The company also makes a TV, an air purifier, extra batteries for things, and other accessories; they're all good-looking and inexpensive.
The first Xiaomi products in the U.S. will be sold through mi.com and will include the $13 Mi Band health tracker (shown above) and a set of headphones. Analyst Neil Shah pointed out on Twitter that the company could make a huge splash in the U.S. market with its 4K TV, which it sells "at a price of an iPhone." Barra didn't give a specific date when the Mi.com store would open in the U.S.
So, why not phones, such as the Mi Note that the company is currently so proud of?
According to The Verge, "Barra cited problems like hardware certification, software testing, infrastructure, and other similar logistical challenges the reasons for not bringing devices like handsets and tablets to the U.S."
That's dancing around what competitors such as Lenovo and ZTE have told me is one of Xiaomi's key challenges in the U.S., a lack of signed agreements to use the complex networks of patents needed to launch an Android phone here. While Xiaomi's use of Qualcomm chips insulates it from some legal challenges, competitors are aching to put Xiaomi into a U.S. court and see what shakes loose.
Looking at the TechCrunch liveblog of the event, it looks like Xiaomi execs sidestepped all questions about patents, leaving that whole issue still a mystery.
For more, check out Can Huawei and ZTE Conquer the U.S.?