In a new revelation, Xiaomi’s CEO Lei Jun has confirmed that besides chief rivals Apple and Samsung, the biggest competition the company faces today is from counterfeiters. Bloomberg reports that fake products are eating into Xiaomi s sales massively, so much so, that if they didn’t exist the sales figure for Xiaomi’s products would double or triple. Also Read - Mi Band X strapless smart band with 360-degree flexible display under works?Also Read - Best laptops under Rs 40,000 in July 2021: Mi Notebook 14, Asus VivoBook 14, and more
Giving an example, Jun said that the sale of Mi Power Banks was less than half of what it should have been last year. What is the biggest problem? There are many fakes, he said. If there were no counterfeits, our sales would be double or triple. The product has been recognized by everyone. Also Read - Friendship Day gifting ideas for your young tech-savvy besties under Rs 5,000
Xiaomi managed to sell a total of 14.6 million units of Mi Power Banks last year. What is worse is that counterfeiting not only happens outside of China where there might be supply constraint, but it also exists in the home country. Chinese markets help in distribution of these counterfeit products within China and outside. The report claims that the estimated revenue lost to counterfeit products comes close to $115 million.
Celebrating its fifth birthday, Xiaomi sold 2.1 million smartphones, 38,000 televisions, and 770,000 smart devices in 12 hours in China. The company is the most valued startup in the world and is currently valued at $45 billion.
The company’s second largest market is India where it has gained huge fan following in less than a year of its entry. It is all set to do a global launch event in Delhi on April 23 where it will unveil its next smartphone, and Lei Jun, Bin Lin and Hugo Barra are slated to attend the big event. While it has stayed mum over what will be launching, leaks hint that Xiaomi could be launching the Mi 4i.