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Xiaomi to sell smartphones in U.S. and India after sales dropping in China

China’s leading smartphone maker Xiaomi saw a 38% YoY decline of smartphone shipments in China in Q2 2016, according to market research firm IDC. The company is going to sell smartphones in the U.S. to boost its overall shipments, Bloomberg reported last Friday.

According to the report, Xiaomi cannot afford to ignore the U.S., which is the largest smartphone market by revenue in the world. In the U.S., the company will mainly sell their smartphones online.

“The U.S. is a market that we definitely have in our sights. We will lead with social media, with the channels that allow us to get in touch with the young generation that are enthusiastic about new technology,” Vice President of Xiaomi Global Hugo Barra, said in the Bloomberg report.

The company’s new move may well be a countermeasure to boost its overall smartphone shipments, considering its continuous decline of smartphone shipments in China in the first half of 2016.

According to IDC, Xiaomi was the world’s fifth largest smartphone vendor, with 70.8 million shipments made in 2015. But it was kicked out of the top five list by its Chinese rivals OPPO and vivo in Q1 2016, and it has remained out in Q2. Even in the China market alone, the company shipped 10.5 million smartphones in Q2 2016, a 38.4% YoY decline, also dwarfed by Huawei’s 19.1 million, OPPO’s 18 million and vivo’s 14.7 million.

Xiaomi has been selling products online in the U.S. including earphones and wristbands. But selling smartphones there is totally a different story, since the technology is more demanding and the American market has been dominated by Apple and Samsung. The sales channels are also controlled by telecommunications carriers, including Verizon and AT&T.

Before the U.S., Xiaomi has been selling smartphones in India, its largest international market, as well as the fastest growing one in the world. Most of its sales are also done online, including on its official Indian site, as well as Amazon and Flipkart.

Xiaomi’s upcoming entry into the U.S. also reflects a saturated smartphone market within China. As many as 430 million smartphones were sold in China in 2015, according to IDC.

(Photo taken from Baidu Images)

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