Xiaomi, founded in 2010, passed South Korea's SaM:ung Electronics Co. in the second quarter of last year as the best-selling smartphone brand in China by number of phones sold. The company is expanding into India and other developing markets but has yet to announce plans to enter the United States or Europe.
Xiaomi "is a respected brand that already has an Apple-like following" in China, said analyst Brian Blair, who tracks mobile device makers at Rosenblatt Securities. Apple is still a relatively small player in China, selling about 45 million iPhones there last year, Blair estimates, but will continue to grow.
"Apple is very much a premium (高端的) brand," said Blair. "The company that's more at risk is SaM:ung, which has been losing share in that market."
Privately held (私人控股的) Xiaomi said last year's sales tripled to 61. 1 million phones and revenue (收益) more than doubled to 74. 3 billion yuan ($12.2 billion). The company, based in Beijing, recently completed a round of fundraising from investors that it said valued Xiaomi at $ 45 billion, making it one of the world's most valuable technology brands.
Xiaomi ran into legal trouble in India in December after a court blocked sales while it hears a complaint by Sweden's LM Ericcson that the Chinese company violated its patents.
In a blog post earlier this month, Lei called the case a "rite of passage" (成年礼) for a young company.
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