Xiaomi released its first smartphone in August 2011 and rapidly gained market share in China to become the country's largest smartphone company in 2014. At the start of second quarter of 2018, Xiaomi was the world's fourth-largest smartphone manufacturer, leading in both the largest market, China, and the second-largest market, India. Xiaomi later developed a wider range of consumer electronics, including a smart home (IoT) product ecosystem, which has connected more than 100 million smart devices and appliances. Monthly active users (MAUs) of MIUI increased to 291.6 million in September 2019.
Xiaomi has 16,700 employees worldwide. It has expanded to other markets including Greater China, Singapore, Japan, South Korea, Russia, South Africa and most countries and regions in Southeast Asia and Europe. According to "Forbes", Lei Jun, the founder and CEO, has an estimated net worth of US$12.5 billion. Xiaomi is the world's 4th most valuable technology start-up after receiving US$1.1 billion funding from investors, making Xiaomi's valuation more than US$46 billion. Ranked 468th, Xiaomi is the youngest company on Fortune Global 500 list for 2019. In 2019, Xiaomi's mobile phone shipments reached 125 million units, ranking fourth globally since 2018. The company has been listed on the Hong Kong Stock Exchange since 2018.
"Xiaomi" () is the Chinese word for "millet". In 2011 its CEO Lei Jun suggested there are more meanings than just the "millet and rice. He linked the "Xiao" () part to the Buddhist concept that "a single grain of rice of a Buddhist is as great as a mountain," suggesting Xiaomi wants to work from the little things, instead of starting by striving for perfection, while "mi" () is an acronym for Mobile Internet and also Mission Impossible, referring to the obstacles encountered in starting the company. He also stated that he thinks the name is cute. In 2012 Lei Jun said that the name is about revolution and being able to bring innovation into a new area. Xiaomi's new 'Rifle' processor has given weight to several sources linking the latter meaning to the Communist Party of China's "millet and rifle" (小米加步枪) revolutionary idiom during the Second Sino-Japanese War.
Lei Jun, Xiaomi's CEO, said that the company prices the phone almost at bill-of-material prices, without compromising the component quality and performance compared to other premium smartphones. It also profits by selling phone-related peripheral devices, smart home products, apps, online videos and themes. According to Xiaomi's Hugo Barra in 2014, the company sees hardware sales as a means of delivering software and services in the long term, "We are an Internet and a software company much more than a hardware company." However, financial data available at the time indicated that this is either wishful thinking or plans for the far future: 94% of the company's revenue came from mobile phone sales, an even higher proportion than Apple.
At first, to reduce overhead costs, Xiaomi did not own any physical stores, selling exclusively from its online store. In recent years, they have opened 54 brick and mortar stores to combat the strategies of other low-cost competitors in Chinese markets. It also did away with traditional advertising and relies on social networking services and word-of-mouth to publicize its products.
By keeping a tight control over its stock, Xiaomi is able to place cheaper batch orders as demand dictates. Limited availability flash sales ensure that supply never outstrips demand and helps promote its products. In contrast, traditional OEMs incur large upfront productions costs, which must be recouped by selling prices, in order to ship phones, some of which may not sell, out to retailers all around the world.
Xiaomi say that they listen closely to customer feedback, having them test out upcoming features themselves, and building an extensive online community. Lei Jun described it this way, "When I was with Kingsoft, I had the opportunity to work with Nokia and Motorola, two mobile phone giants of their time. One day, I pointed out to their R&D boss, some inadequacies. After that, they merely acknowledged my input but never acted upon what I had said. So I thought to myself, if I make a phone, you can tell me anything you wish for it or what's wrong. If it is justifiable, we will work on it immediately. I'll give you an update every week and you may even see your wishes come true within a week. In practice, Xiaomi's product managers spend a lot of time browsing through the company's user forums. Once a suggestion is picked up, it is quickly transferred to the engineers. Therefore, features can turn from a mere concept to shipping products within a week. The company then ships a new batch of phones out every week on Tuesday at noon Beijing time, containing the new software builds and possible minor hardware tweaks. Xiaomi calls this process "design as you build."
Xiaomi's mascot, Mitu, is a white rabbit wearing an Ushanka (known locally as a "Lei Feng hat" in China) with a red star and a red scarf around its neck.
POCO is a sub-brand owned by the Chinese electronics company Xiaomi Corporation. It was first announced in August 2018 as a mid-range smartphone line, and became a separate sub-brand of Xiaomi in 17 January 2020 with entry-level and mid-range devices, while Xiaomi itself produces upper-range and flagship Mi phones. POCO phones use the Xiaomi MIUI user interface on top of Android.
In Q4 of 2018, the POCO F1 reportedly become the best selling smartphone sold online in India, beating competition such as the OnePlus 6. The Pocophone was sometimes referred to as the "flagship killer killer" for offering high-end specifications at an affordable price. The first POCO phone was released in 2018 in India on Xiaomi's website. It instantly became a bestseller with 700,000 units sold until 6 December 2018, becoming the best selling smartphone sold online in India.
Xiaomi produces many products. Observers suggest that part of Xiaomi's rapid success rests on its ability to differentiate itself within the Android universe. The company has increased its range of products; its smartphones include: Mi Series, Mi Note Series (got a new update after 3 years, with the Mi Note 10 Pro), Mi Max Series, Mi Mix Series, Redmi and POCO Series. As well as mobile phones, Xiaomi has started selling wearables, mobile accessories, and appliances such as television and speakers. In 2018 it was selling tablets, laptops, and smart-home devices.
Xiaomi operates on a vertically-integrated model that enables the company to sell hardware at cost or below in order to attract users and earn money by selling content. Hugo Barra, a former Google executive who served Xiaomi's vice president from 2014 to 2017, characterized the organization as "an Internet and a software company much more than a hardware company".
Xiaomi also keeps its prices low or close to its manufacturing costs by keeping most of its products in the market longer, eighteen months rather than the six-month norm followed by many smartphone companies. Xiaomi said they sell their phones close to cost and intends to make profit on services.
The company's version of the Android operating system and MIUI skin, with its design, app marketplace, and functionalities, has established a community of users who form a crucial part of Xiaomi's customer base and contribute to the company's drive for market awareness. This ecosystem is a massive source of revenue as indicated in 2015, when sales from the platform reached $750 million.