Iphone vs Xiaomi
Introduction
For this case study, we will be looking into the mobile phone sector in China. As of April 2012, there are 1023.7 million mobile phone subscribers of which 250 million of them are smartphone users. In recent years, two market players have grown tremendously amidst the very saturated smartphone market. They are Apple and Xiaomi. This paper will compare and analyze both similar and different marketing strategies that have been undertaken by both companies to achieve the phenomenal success they have today in China.
General Information
Apple was founded very early in America on April 1976. The first iPhone created by Apple was released to the Chinese public in 2009 and it slowly gained popularity among the Chinese. According to Apple’s Chief Operation Officer Tim Cook, iPhone sales in China grew by almost 250% between 2011 and 2012 to bring Apple’s revenue in China to just under US$5 billion, representing about 10 percent of Apple’s total revenue internationally.
Xiaomi was founded in China on April 2010. The Xiaomi Mi-One phone was first released for sales in China on August 2011. In July 2012, the founder of Xiaomi, Mr Lei announced that the company made US$9.6 billion in sales for the period ending in June 2012. It was last valued at US$4 billion after it managed to raise some US$216 million in a funding round.
Similar Strategies
1. Creating Brand Loyalty
For both products, there has been large amounts of investment by their companies to create much hype and subsequently a following for the products. In Xiaomi’s case, the brand has an estimated 2 million fans with about 1.3 million followers on Sina Weibo. Such a strong fan-base provides a good channel for marketing and also for feedback on features. In addition, such brand loyalty allows Xiaomi to create a lifestyle around the phone so that it becomes indispensable for the consumers. As for Apple, they too have a fan-base. Many of them see the iPhone as something unique and
For this case study, we will be looking into the mobile phone sector in China. As of April 2012, there are 1023.7 million mobile phone subscribers of which 250 million of them are smartphone users. In recent years, two market players have grown tremendously amidst the very saturated smartphone market. They are Apple and Xiaomi. This paper will compare and analyze both similar and different marketing strategies that have been undertaken by both companies to achieve the phenomenal success they have today in China.
General Information
Apple was founded very early in America on April 1976. The first iPhone created by Apple was released to the Chinese public in 2009 and it slowly gained popularity among the Chinese. According to Apple’s Chief Operation Officer Tim Cook, iPhone sales in China grew by almost 250% between 2011 and 2012 to bring Apple’s revenue in China to just under US$5 billion, representing about 10 percent of Apple’s total revenue internationally.
Xiaomi was founded in China on April 2010. The Xiaomi Mi-One phone was first released for sales in China on August 2011. In July 2012, the founder of Xiaomi, Mr Lei announced that the company made US$9.6 billion in sales for the period ending in June 2012. It was last valued at US$4 billion after it managed to raise some US$216 million in a funding round.
Similar Strategies
1. Creating Brand Loyalty
For both products, there has been large amounts of investment by their companies to create much hype and subsequently a following for the products. In Xiaomi’s case, the brand has an estimated 2 million fans with about 1.3 million followers on Sina Weibo. Such a strong fan-base provides a good channel for marketing and also for feedback on features. In addition, such brand loyalty allows Xiaomi to create a lifestyle around the phone so that it becomes indispensable for the consumers. As for Apple, they too have a fan-base. Many of them see the iPhone as something unique and