Xiaomi Was Supposed to Penetrate the U.S. Market This Year; Has the Company Delayed Its Plans?
As relations between the U.S. and China continue to worsen, it might not be the best of times for Chinese smartphone companies to chase their American dream. However, all hope is not lost as while Huawei and ZTE have been outright banned in the U.S., OnePlus is doing well in the country. Perhaps because of the current circumstances, Xiaomi isn’t planning to enter the U.S. anytime soon, even though it was planning to penetrate the market this year.
Xiaomi Is Waiting for the Market to Mature Before Releasing Its Foldable Phone Too
In early 2018, it was rumored that Xiaomi will enter the U.S. by late 2018. Later on, Wang Xiang, Xiaomi’s Vice President announced that the company will expand to the U.S. in 2019. However, it seems like that isn’t going to happen anytime soon as Xiaomi’s global spokesman, Donovan Sung has said that the company will continue to look at U.S. expansion in 2019 and 2020.
On the other hand, the company is witnessing growth in Europe. In Q4 2018, Xiaomi’s share in European countries increased by 62 percent. The success can be attributed to the low priced offerings of the company which do not compromise on innovation and design.
Xiaomi has also recently revealed its first 5G handset, the Mi MIX 5G, but it is not going to be officially arriving in the U.S. The company’s president Bin Lin has also teased a foldable phone, although it’s in the prototype stage right now. Sung says that the company is experimenting with different designs but since the market is in its infancy, Xiaomi might not release a foldable smartphone anytime soon. This makes sense as the first few foldable smartphones are expected to cost around $2,000, and since Xiaomi is known for selling relatively affordable devices, its foldable phone might not sell well.
However, the company recently announced that going forward, the price of its phones will increase. This will be done to reestablish the image of the brand, as it’s currently known for its cheap prices and low prices are often associated with low quality. However, low prices are the reason why Xiaomi phones perform so well in the market and its new pricing strategy won’t work unless it also improves new features on its phone that justify the price.
For now, Xiaomi has delayed its plans to officially enter the United States, but its devices are still available through third-party sellers such as eBay, albeit for a higher price.
News Source: VentureBeat