How A Deal With Microsoft Corporation Will Help Xiaomi, Inc.
Xiaomi, Inc. and Microsoft Corporation has recently revealed a cross-licensing and patent-transfer agreement which will enable Xiaomi smartphones to come with Microsoft Office and Skype beginning September.
This deal is not the first collaboration between the two companies. Xiaomi and Microsoft have already teamed up to incorporate the Windows 10 operating system (OS) in the Mi Pad tablets. Moreover, the Mi Cloud is also running on the Microsoft Azure, the flagship cloud-based platform of Microsoft.
Likewise, this is not the first time that Microsoft is teaming up with smartphone manufacturers to have the Microsoft Office and Skype apps pre-installed in Android devices. Samsung Electronics Co. Ltd., for example, has recently collaborated with the software giant as well to incorporate the mobile apps in its new devices.
Partnership, to Strengthen Global Positions
The Chinese smartphone manufacturer is one of today’s fastest growing start-ups. However, Xiaomi has suffered from previous losses as stronger players enter the industry with cheaper models.
With this new offering, Xiaomi will be able to provide productivity tools in its devices. As a result, the products can become more competitive in the market as they meet the demands of the consumers, particularly those who work in busy fields of profession.
Microsoft, on the other hand, can get its services on more platforms. The technology company can tap the growing smartphone market in China. Similarly, this can spark Xiaomi’s long-awaited entry in the US market. Consequently, the deal is a win-win kind of situation on both parties given the wide array of global opportunities that have opened.
Looking at the Figures
In a one-month data revealing the sales of leading China-based smartphone makers, Xiaomi has reportedly taken 26% of the domestic market. Honor, a subsidiary of Huawei Culture Co. Ltd., placed second, having captured 15.70% of the domestic market during the same period. LeEco, Apple, and Huawei came in next with 10.50%, 8.20%, and 8% of the market share respectively.
While Xiaomi’s revenues are far from industry leader Apple’s, it has consistently demonstrated impressive growth since its establishment in 2010.