Xiaomi, a top Chinese cellphone company, has distanced itself from a Pakistani company claiming to be operating on its behalf, ending a weeklong row with the telecom regulator, Pakistan Telecommunication Authority (PTA).
According to the International Data Corporation (IDC), Xiaomi is the third largest smartphone maker in the world as of October 2014 following Samsung and Apple and followed by Lenovo and LG. Having overtaken Samsung, Xiaomi became the largest smartphone vendor in China in 2014.
In an exclusive talk with Pakistan Today from Beijing, Xiaomi Communications Manager Kaylene Hong said that Xiaomi had not officially started selling smartphones in Pakistan.
“We have seen many reports circulating in Pakistani media that suggest that the PTA has banned sale of Xiaomi smartphones in Pakistan. Many of these reports contain incorrect information, as Xiaomi has not officially started selling smartphones in Pakistan,” said Hong.
Referring to the action taken by the PTA against a local vendor selling Xiaomi smartphones, Hong said the PTA was specifically targeting unauthorised resellers in particular the website with the domain “http://www.XiaomiPK.com” which has not been authorised by Xiaomi in any way.
“We have requested the domain web host to immediately take steps to take down the illegal website which is an infringement of Xiaomi’s intellectual property rights. Xiaomi has a very good working relationship with the PTA and we believe that with PTA’s support, we will be able to sell Xiaomi smartphones soon in Pakistan through partners,” she added.
Hong said that the ban proposed to be enforced by the PTA was specifically targeting the unauthorised resellers who had been unofficially selling Xiaomi products in Pakistan, without complying with the necessary legal formalities.
She said the news story circulating across Pakistan was widely read all over the world by industry peers, so “we find it important to clarify the situation through an official statement”, she added.
When contacted, PTA Media Director Khurram Mehran also confirmed the account shared by Ms Hong.
“We have not received any request from Xiaomi, Beijing. Rather, a local vendor namely Cheezmal is involved,” he said. According to the PTA official, Cheezmal had applied to the PTA for type approval of Xiaomi handsets. “Their application is under process,” he added.
Another fact to be considered is that Xiaomi has never tried to enter the Pakistani market.
Media reports claim that some years back, one of Xiaomi officials had outlined the global expansion plan till 2018, but Pakistan was never part of this expansion map.
Xiaomi is a privately-owned Chinese electronics company headquartered in Beijing. It is the world’s fifth largest smartphone maker. In year 2015, Xiaomi sold 70.8 million units and accounted for almost five per cent of the smartphones global market share. Xiaomi designs, develops, and sells smartphones, mobile apps, laptops and related consumer electronics.
Since the release of its first smartphone in August 2011, Xiaomi has gained market share in mainland China and expanded into developing a wider range of consumer electronics, including a smart home (IoT) device ecosystem. The company’s founder and CEO is Lei Jun, China’s 23rd richest person according to Forbes. The company sold over 60 million smartphones in 2014.
Towards the end of 2014, Xiaomi became the world’s most valuable technology start-up after it received $1.1 billion funding from investors, making Xiaomi’s valuation more than $46 billion. Xiaomi entered the Indian market in July 2014 and has expanded rapidly in India since.
Earlier, Xiaomi used to sell exclusively on Flipkart until it announced its partnership with both Amazon.com and Snapdeal on April 7, 2015. This is seen as a bid by the smartphone manufacturer to expand its retail base in India. It has also teamed up with AirTel Store and The Mobile Store to sell some of its selected devices.
Later, in the first quarter of 2015, Xiaomi started its own store and stopped selling its accessories to online stores. On its first anniversary in India, it launched its own Mi Store App. On August 11, 2015, it started its first factory in Sricity, Andhra Pradesh in partnership with Foxconn.