Chinese Tech Billionaire To Launch Next Xiaomi Smartphone

All will be revealed (Photo credit: Wikipedia)

Chinese smartphone startup Xiaomi has confirmed that it will unveil its new model in Beijing on Aug. 16, a year after the launch of its debut MI-1. The Android-based phone has sold over 3 million units and put Xiaomi and its billionaire cofounder Lei Jun on the global smartphone map. A Xiaomi spokesman refused to discuss the phone’s features, telling FORBES that all would be revealed on Aug. 16. A report on Sohu.com last week claimed that the new phone would use a Qualcomm quad-core 1.5GHz chip with a 4.3″ display touchscreen. Interestingly, Xiaomi may be raising its price to RMB2,499 ($392), compared to RMB1,999 for the first-generation phone. Lei initially told reporters that he didn’t expect to make a profit from handset sales, but surging shipments upended that calculation and boosted Xiaomi’s valuation to $4 billion in a recent funding round. You can read my profile of Lei here.

In a research note, Brian White of Topeka Capital Markets notes that Xiaomi recorded $995 million in sales for 1H 2012 and that China’s smartphone market continues to post rapid growth.

During our travels to China, we have noticed a surge in the popularity of Xiaomi smartphones and already the Company is a top-five vendor at a leading service provider in the country. The Company’s smartphones seem to be especially popular with the younger crowd due to their cutting edge design with high- energy color patterns.

Photos of Xiaomi’s new phone’s eco-packaging, though not what’s inside the box, have been posted to Lei’s microblog. Lei is famous for Steve Jobs-style product presentations that play to his geek fans in China (and infuriate his detractors). He will be out to prove that Xiaomi hasn’t sat still over the last year but is building a better phone with an integrated software experience for users. However, a jump to RMB2,499 would be a bold step, as smartphone prices in China are heading the other way, i.e. cheaper and cheaper. Apple and Samsung occupy the top rungs of smartphone chic, where a high sticker price doesn’t deter avid buyers. Xiaomi wants to carve out a mid-tier position where its brand carries weight. Its new phone will be a crucial part of that strategy.

By Simon Montlake, Forbes Staff

Newscribe : get free news in real time