Challenging Apple by Imitation
By SUE-LIN WONG
Published: October 29, 2012, NY Times
BEIJING — When Lei Jun, the head Xiaomi, one of the fastest-growing smartphone companies in China, talks about Steven P. Jobs, he is full of praise — and a hint of envy.
“When Steve was alive, he was the best,” Mr. Lei said during a recent interview. “Nobody could surpass him. Nothing could surpass the iPhone.”
Apple and its late co-founder have no shortage of challengers — not to mention emulators — in China, a country that analysts expect will overtake the United States this year as the world’s largest market for smartphones.
Chief among the rivals is Xiaomi, whose newest smartphone has been expected to go on sale this month for 1,999 renminbi, or $320 — less than half the starting retail price of an iPhone 4S in China. Pricing for the iPhone 5 in China has not been set.
Less than three years since it was founded, Xiaomi, meaning “little rice,” has become a rising star in the Chinese smartphone market. The company predicts that by the end of 2012, sales will reach nearly seven million phones and revenue will be at 10 billion renminbi — impressive for a company that sold its first smartphone in August 2011.
The scene at a Xiaomi event in August of this year was reminiscent of Apple’s typical product introduction under Mr. Jobs, who died last October. Mr. Lei strode onto a stage in the trendy 798 art district in Beijing to show off the Mi-Two to a roomful of cheering fans. He was dressed in a black polo shirt, jeans and black converse shoes, not much different from Mr. Jobs’s trademark outfit.
Xiaomi’s marketing strategy has been to ride on the back of the “cult of Apple” and of its creator, said Wei Wuhui, a technology industry expert at Shanghai Jiaotong University.
“Many Chinese consumers have come to idolize the Apple brand, and Xiaomi has been there to provide a similar product at a much cheaper price,” he said.
Fans — and critics — have been...
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