Xiaomi – China’s Samsung?
Xiaomi is one of those rare success stories that you hear in the mobile industry. Sure it has not covered the global market yet. Sure the American smartphone industry is still the largest in the world followed by Europe. There is that, and there is the fact that without even hitting those markets Xiaomi is in the world’s top three manufacturers list. It has proven itself capable time and time again even when you compare it to other big brands. It is able to shift more hardware that the likes of HTC even. Now tell me that you are not even slightly impressed with their achievements. if you are not impressed yet; quarter 1 of 2015 saw them beating Samsung in numbers! Even competitors from their own country; Huawei, Oppo, and ZTE has not been able to reach their heights before. Their dominance in the China market is also unparalleled.
So it is no surprise then when Xiaomi just been confirmed to be working with Leadcore to develop new technologies and patents, which of course will be translated to a new product. To those who are unfamiliar with Leadcore they are a manufacturer of chipset and processors in a nutshell. As for the new product that Leadcore is talking about, it is most definitely a new processor for upcoming Xiaomi devices. For all you know it could be a Xiaomi branded processor.
Of course when you start wanting to build your own brand in this kind of industry comes the question of why. Apple designs their own processing chips and it comes with a hefty cost through Research and Development. Same goes to Samsung and their manufacturing plants that caters to other brands as well and helps lower costs for their clients including Apple. Samsung though benefit through this as one of the major suppliers and manufacturers in the mobile industry and therefore becomes a preference as a manufacturer when it comes to processors. Also as a manufacturer of many other processor designs they benefit in terms of their own R&D where they have more resources and experience in terms of building and designing their own processors; results does show in their Exynos chips.
Xiaomi though does not have the kind of facilities that Samsung has access to. Here is where Leadcore could be useful. Being one of the most well connected processing chip manufacturer in China helps with their technology and patents. They already have existing technologies for China’s TD-SCDMA and TD-LTE networks integrated into their chip solutions. Xiaomi then will draw expertise from Leadcore in terms of technologies and industry know-how. It still does not answer the question of why Xiaomi wants to go into the industry of making processing chips though.
For one, even though they, like any other manufacturer under the Qualcomm brand do benefit from using Qualcomm’s chips, they; also like plenty of manufacturers would like to shed their dependence on Qualcomm. Here is the thing though the hottest selling items out there in the industry are Qualcomm powered devices nowadays. Here is why; by losing dependence on Qualcomm Xiaomi could design their own chips on their own specifications and could potentially reduce manufacturing costs significantly. From cutting down manufacturing costs also they could potentially bag other Chinese Qualcomm supporters like Huawei and Oppo. These are potentially huge customers. Of course another big benefit is that they will become a household name for China and for the rest of the world as well like how Samsung does it for South Korea.
Would you buy a Xiaomi processor powered smartphone though? Let’s say that the phone is much cheaper than that of others in the same range, not like the current cheap; way cheaper. I mean, given the reputation of the brand currently, why not right?
Sources: Android Authority