Samsung Executives Are Questioning Xiaomi’s Capability To Do Business Outside Of China

November 18, 2014 - Written By Kristijan Lucic

Samsung has been on the rise for a long time as far as the smartphone market goes. The company has strived on the market and sold tons of their Android-based Galaxy devices, but in the last couple of quarters this Korean giant is facing profit drops, significant ones. Samsung has already started shifting things around in order to get their business back on track. The company has introduced a number of handsets which sport partial metal build in order to look and feel more premium with which they’ll try to compete with companies like Xiaomi in China in order to regain the number 1 spot in that Asia country, which happens to be the biggest market in the world. Samsung is also planning to decrease the number of handsets they produce at the moment up to 30%. This Korean giant is pulling all the right moves at the moment, the only things I’d personally really appreciate is for Samsung to get their TouchWiz UI in order and cut back on the amount of features they pack it with. Aside from that, I believe Samsung is on the right track.

That being said, it seems like Samsung executives aren’t as concerned as we thought they are, as far as Xiaomi goes at least. According to the source, Samsung executives said something interesting during Samsung Electronics Investor’s Forum in New York. Samsung execs said that Xiaomi is doing great in China, but that their business model is unproven outside of Asia and that the company might struggle to penetrate other markets. Samsung, on the other hand, is doing business worldwide and it seems like their executives are aware of that fact. That much is obvious, Chinese market is significantly different than other markets all around the world and it remains to be seen if Xiaomi can change up its business model and actually strive in other markets as it is doing in China at the moment. Needless to say, Xiaomi might even face some patent lawsuits soon, especially if they expand outside of their homeland.

Either way, it will be interesting to see if a company like Xiaomi, which is only 4 years old and it is crushing the Chinese market at the moment with their quality-built low-cost handsets, can strive (or even prevail) outside of Asia.