Xiaomi not just selling phones says Brendon Davies of AIM Corporation Limited HK


Posted October 1, 2015 by Aimcl15

Chinese smartphone maker Xiaomi is branching out as a mobile operator, offering users $10-per month phone contracts as it looks to diversify its business away from just hardware

 
The rapidly growing company announced a service called "Mi Mobile" which will allow users in China to buy SIM cards online.
Xiaomi is offering two packages. The first is a pay-as-you-go model which charges 0.10 yuan or $0.02 per voice minute, text message and 1 megabyte of data. This will be available starting September 23. The second deal is a 59 yuan (under $10) package that gives users 3 gigabytes of data and charges customers 0.10 yuan ($0.02) per call minute, text message or for each 1 megabyte that exceeds the 3GB data limit. This will be available for public beta in October.

‘Long-term strategy’
The announcement is seen as a big move for Xiaomi, the world's fourth biggest smartphone maker, as it looks to move away from relying on hardware in a slowing smartphone market to pushing its services.
"This makes total sense in terms of strategy. Most people think that Xiaomi is a hardware company trying to sell cheap handsets. Xiaomi is not just a hardware company, but phones provide a way into the services they will be developing in the future.
They seem to want to follow in the steps as their competitors in offering “A complete package” Says Davies of AIM in Hong Kong. They want to go in the direction of companies here like Orange who offer mobile services and handsets alike.
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Last Updated October 1, 2015