Attributable to the 21st-century advancement in technology, there are not many folks out there who are not in possession of a smartphone. As a matter of fact, smartphones are no longer considered as a luxury item, instead, they have become a necessity to our generation just like water and oxygen. They are the first thing that we look at every morning and the last thing we have our hands on before we go to bed. As a result, the industry behind all of this technology has skyrocketed in recent years. As the demand for smartphones increases, it should come as no surprise that different brands of suppliers are contending to get ahead.
With the United States’ dominance in the global market, foreign suppliers have long been anticipated to demand entry to the circle. Many have not been able to pass the barriers to entry, in addition to minor factors. This is because the United States has maintained a strict policy in these affairs on the grounds of upholding national security interests. ZTE, one of the smartphone manufacturer that originated from China obtained the position as the third runner-up in the United States market last year. Samsung is another multinational conglomerate company that, as we all know, is a leading smartphone provider.
A recent report from the Wall Street Journal reveals a new player in the competition amidst android smartphone providers across the States. Xiaomi, another multinational firm from China, has made its way into Spain earlier on, after finding success in Southeast Asia and India.
“We’ve always been considering entering the U.S. market,” Lei Jun, the Chairman of Xiaomi, expressed in the event of China’s legislative session that takes place once a year in Beijing, China.
Conversely, Xiaomi is not new to the United States market. They have been the retailer of quality gadgets such as television set-top unit for android, cameras, speakers, headphones and so forth for some time now. Due to the exclusivity of the smartphone market, however, Xiaomi has not been able to navigate through government policies imposed by the United States.
Despite the complicated regulations and proceedings, Jun is determined to overcome these challenges. He insisted that Xiaomi, as a firm, will familiarize themselves with United States rules and regulations in the course of months. At the meantime, they will continue to enhance and upgrade their products based on customers’ demands.
Though this may sound promising, the encounter with Huawei may suggests otherwise. Prior to this, Huawei had introduced its featured smartphone, Mate 10 Pro, in the United States. They were considered as a prospective partner by the local phone service provider, AT&T. In spite of that, their plans ended unsuccessfully due to government interference.
Many people are putting down their iPhones in exchange for Android devices that allow more room for customization. As we look forward to Jun’s promising plans, the anticipation of these smartphones offered by Xiaomi will no doubt be exciting for all the Android users out there! In fact, consumers in Southeast Asia have expressed their approval online since the appearance of Xiaomi gadgets many years ago. With an addition to the competition, other smartphone providers will undoubtedly improve their products in order to keep up. As a consequent to an increased number of substitute products, the manufacturers will have to lower their cost of production in order to compete, which means that the final benefactor in the smartphone market will be the consumers who holds the purchasing power.
The two leading brands, Apple and Samsung, will experience a decrease in value. This is because with more participants in the run for a portion of the pie, their halves become smaller. Replacing the pie with market value shows the loss that Apple and Samsung will suffer from, as more companies get ahead.
Featured Image via Flickr/Jon Russell