Skip to Content

Xiaomi

This Chinese startup could outmaneuver big companies in the coming smartphone boom in developing countries.
February 18, 2014

Steve Jobs jolted the mobile-phone business by introducing a device that everyone had to copy. Now his unabashed admirer Jun Lei is shaking up the enormous Chinese market with smartphones that cost much less than comparable devices.

Jun Lei, 44
Chairman and CEO, Xiaomi

Lei is founder and CEO of Xiaomi, which is just four years old but already one of the top six smartphone vendors in China. It entered the business in 2010 by releasing a custom Android operating system, known as MIUI (pronounced “me UI”), whose interface looked a lot like the iPhone’s. It was hugely popular among enthusiasts who love to modify a phone’s functions. A year later, Xiaomi began selling a series of phones that had high-end specs but sold for roughly half of what rival devices were going for in China.

One reason the prices are so low is that Xiaomi (pronounced “zho-me”) sells at or near cost and makes its money when customers pay for its cloud-based services, such as messaging and data backup. The company is also skillful at timing its sales. It presells a very limited number of devices, which invariably sell out, attracting more interest. By the time the later buyers get their devices, manufacturing costs have declined significantly for Xiaomi.

Lei has cultivated a Jobs-like image, all the way down to his personal wardrobe and product announcements. His fans call him “Leibs” (a combination of Lei and Jobs), though his detractors also use the term in mockery. Regardless, his company is getting itself in position to sell a big chunk of the billion Android phones expected to flood the developing world in the next few years as prices keep falling.

“Even a pig can fly if it sits in the right spot during a whirlwind.” —Jun Lei

Keep Reading

Most Popular

Death and Jeff Bezos
Death and Jeff Bezos

Meet Altos Labs, Silicon Valley’s latest wild bet on living forever

Funders of a deep-pocketed new "rejuvenation" startup are said to include Jeff Bezos and Yuri Milner.

tonga eruption
tonga eruption

Tonga’s volcano blast cut it off from the world. Here’s what it will take to get it reconnected.

The world is anxiously awaiting news from the island—but on top of the physical destruction, the eruption has disconnected it from the internet.

mouse engineered to grow human hair
mouse engineered to grow human hair

Going bald? Lab-grown hair cells could be on the way

These biotech companies are reprogramming cells to treat baldness, but it’s still early days.

conceptual illustration showing various women's faces being scanned
conceptual illustration showing various women's faces being scanned

A horrifying new AI app swaps women into porn videos with a click

Deepfake researchers have long feared the day this would arrive.

Stay connected

Illustration by Rose WongIllustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.