so what is keeping Xiaomi out of the US
market well it's not their high quality
affordable phones Xiaomi is a fun
company its phones are great to play
with their powerful innovative and for
the most part pretty cheap our biggest
problem with their phones is that we
can't get them they're not easily
available in the West Xiaomi is a
Chinese first affair with precious few
exceptions despite public comments about
building a patent war chest in advance
of the stateside launch in mid-2015
there's been no meaningful push into the
American market but a curious thing
happened with Xiaomi they made a big
hoopla about launching into the United
States and then they sort of stopped
talking about it and then they sort of
dismissed the question altogether so
what happened and how did happen because
we want high quality affordable phones
well for starters patent wars happened
you remember the patent war between
Samsung and Apple and Samsung lost and
had to pay Apple over a billion dollars
in damages yeah
so what our company's doing well they're
building a patent war chest so that if
so-and-so company sues the other company
for patent infringement they will sue
them back for patent infringement - it's
like a 1980s nuclear war deterrent
strategy don't sue us for patent wars
because we're gonna sue you right back
well back in CES 2017 then global VP
Hugo Barra said quote we don't want to
go anywhere near the half-hearted
efforts to launch a brand in the US just
to say we're in the US unquote Barra
pointed to a brand building efforts in
the United States such as the release
and a set-top box at Google i/o 2016
less than a month later Barra left
Xiaomi I'm not saying the two are
related but it is sort of a non-answer
answer now I know what some of you are
thinking you think of Jase it's all
about the carriers and Xiaomi knows that
and they did make efforts about a week
later after Barra left Xiaomi had a
brand new supplier in the United States
us mobile a t-mobile and VNO announced
that they would be the first us-based
Xiaomi phone provider then the next day
on February 2nd the phones were pulled
and it was announced that they were
never on
authorized dealer oops someone got fired
you see one of the biggest obstacles
that Xiaomi faces in entering the
Western markets lies with its patents or
rather the patents of other companies
every aspect of making a smartphone has
been legally secured in markets around
the world Xiaomi has been working on
growing its patent collection but the
bulk of those patents reside in its home
market of China any attempt to bring its
products to Western markets would open
up legal issues that would be both
costly and take a lot of time think
Apple versus Samsung in Europe to avoid
this Xiaomi has been building up its
patent portfolio through a number of
deals over the past few years gray
Beacom has a full breakdown of Xiaomi's
patents the highlights of which include
patent deals with Qualcomm Microsoft and
Nokia building up its patent portfolio
Xiaomi will avoid making legal
complications in new markets now some of
you may remember that Xiaomi said that
they intended to go directly to the
consumer and sell you their phones all
you had to do was go on their website by
their phone Bing but a boom but a Bing
but its execution didn't work out so
well you see you can go to this website
right here and it allows you to browse a
number of Xiaomi phones if you want to
buy them you can but it redirects you to
another site where you actually order
the phone the phones themselves are sold
unlocked without Google Play services
yeah no Gmail no Google Play no none of
that
but you can buy the phone if you want
neither website is owned or maintained
by Xiaomi they're only set up to import
the phones who here wants an Android
phone without Google Play services right
the established big boys like Apple and
Samsung are gonna use their significant
influence to Fort shammies efforts to
make relationships with those carriers
Apple and Samsung have a lot of
influence with t-mobile with AT&T and
all that right and it's also further
complicated by the fact that the average
phone user not people like you and me
who watch youtube videos about an
operating system know the average user
goes and buys the phone that's
recommended to them by the customer
server agent at the carrier level right
I mean or maybe they saw it in a
commercial or something like that but
they don't put a lot
Intuit and Apple and Samsung like that
and that's what Xiaomi is up against but
it can't be all doom and gloom right
I mean Xiaomi and Huawei also are
delivering really good devices with
great prices and you can't fort that
forever eventually the consumer demand
is going to be such that Xiaomi asked to
succeed they have to find a way to find
a crack in the wall and deliver to this
massive market that buys lots of phones
what do you think how should they do it
what should they do they've been trying
a lot let me know in the comments below
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