How to Start a Successful Smartphone Company – Breaking down Xiaomi’s tactics

Tech Startup or Smartphone company Featured Image
The smartphone market is clearly saturated at this point. Starting a smartphone company might not seem to be the best option. But there are a few tactics that you can use to start a successful smartphone/tech company. See, here’s the thing. Despite being saturated, there is a constant demand in the smartphone market. Everyone needs a smartphone and even if someone has one now, he/she will need another one in a few years because smartphones degrade with use. Thus, the constant demand. You just have to ensure that people look towards your company when they need one. This article will point you in the right direction to start a successful smartphone company without spending too much on investments. We will breakdown the strategies of Xiaomi to show you how you too can grow your company quickly with highly effective tactics. Xiaomi Market Share Since entering the Indian market in 2014, Xiaomi has consistently kept growing. It has now 31% of the Indian smartphone market share! As we all know, the Indian market is the largest smartphone market in the world. And occupying 31% of it is quite challenging. So, how is Xiaomi leading the Indian market? How can you utilise Xiaomi’s model to grow your own company? A brief declaration: I don’t own any smartphone company. I am just breaking down Xiaomi’s model to help people and enthusiasts like you. Also, being a tech enthusiast I have a good idea of what an average consumer really wants.

The Ideology Of Your Smartphone Company

When people hear of Xiaomi, they immediately think of a good smartphone at an unbelievably low price. This is by far the most used approach. Xiaomi Smartphone Company logo You need to provide the consumers with the best possible deal. For this one needs to understand its consumers – what they do, what they need, etc. It will help you provide a device that best suits their needs. If you create something that people need and can easily afford, you’re already on the right path. So, research about your consumers, create something of extraordinary value and provide it to the consumers at an affordable price.

Crafting Your Smartphone

When it comes to designing a smartphone you need to look after the design and hardware specifications. There’s not much innovation you can do to design if you’re more of a start-up as it would only lead to production hurdles. So it’s better to keep it simple. But make it look attractive.
Concept Phone
Concept Phone
As for your hardware, it needs extensive research so as to allow your smartphone to be a success. Use the hardware that suits your consumers. For example, if it is aimed at gamers, use high-end specifications but if it is just meant for normal day-to-day to use for browsing the net and checking e-mails, you can use mid-level specifications. It not only helps keep your costs down but it shows that you care for your consumers. If you look at Xiaomi, it’s designs are mostly similar to that of iPhone’s. It doesn’t have the premium metal and glass design as iPhones have. But it does a good job of mimicking it’s design in plastic to keep costs low.
Xiaomi and Apple Design
Similar Design Language (@AndroidAuthority)
You’d also notice that Xiaomi releases far too many phones in a year and floods the market. But all their smartphones have specific targets. For example, their Y series smartphones are aimed at selfie-takers. I would, however, prefer to keep things simple and not release so many devices in one year. It sure increases sales but also confuses the consumers. Keep it Simple


After you’ve designed your awesome product, the next biggest step is marketing! You need your products into the hands of the people in order to be successful. And if people don’t even know that you exist, how on Earth will they buy your products?

Utilise Influencers

Marketing has changed over the past few years and TV ads and billboards are no longer as useful. The next generation of marketing is through ‘Influencers’. Who are influencers, you ask? Well, influencers are basically people who have a good online presence and a loyal community. They can be popular on Instagram, YouTube or maybe even have a blog which has a good following. They can promote your products to their audience and there’s a big chance that a few may even purchase it!
Influencer Marketing
Influencer Marketing
So, before you go on to set up TV ads, reach out to a few influencers in your niche, work out a deal and you’re all set. It’s cost-effective and way more efficient. This is what Xiaomi did when they first launched in India. You can also advertise on Facebook, YouTube or any other social media site. But beware that not every site will work for your specific niche. So, if you have a smartphone company or a consumer electronics one, it doesn’t make much sense to advertise on Pinterest, which is primarily focussed towards designers. It could work, but it won’t do any better.

Don’t go overboard

When you’re just starting out, you just should not spend all of your marketing budget at once. Before, you even start an ad campaign research about your target demographic – which platform they spend most of their time on? Where do they spend more? – things like these. Then, start an ad campaign on where they spend most of their time on. Again, don’t go all in. Start dry runs to see which works best for you.

Do your research

Understand your demographics and then target them. This can take place through a variety of ways. You can take people’s email address and then send them promotional emails or target them on social media via your ads. Research Target tech enthusiasts if you can. They are the ones that will get you up there. Just look at OnePlus and Xiaomi. Word of mouth is the most powerful tool. If you don’t know a thing about marketing, don’t worry. There’s tons of great content on YouTube and you can also follow Neil Patel or Single Grain for marketing tips and strategies!

Selling and Shipping

Believe it or not, shipping plays a huge role in the success of your company! You absolutely need to deliver products ASAP. Keep in mind the international laws for shipping products with batteries among other laws. Shipping Methods Here are a few articles that will help you in shipping your products: Basic things to keep in mind – Shipping products with batteries – Now, keep in mind your inventory and sell accordingly. You could wish to sell through Amazon, Flipkart, etc. or through your own site. Both has its pros and cons. Web Design

Pros of selling through your own website:

  • More control
  • You get the entire sum (ie. you don’t need to pay commission to third-party)
  • Better customer experience
  • Better brand-building

Cons of selling through your own website:

  • Less traffic and hence less sales
  • More tedious to maintain a website and run it efficiently
Amazon logo

Pros of selling through third-party:

  • More exposure and hence more traffic
  • More promotions and hence more sales
  • Seamless experience

Cons of selling through third-party:

  • Not enough control
  • A small commission is taken from each sale
You could initially choose to sell through your own site and then expand later. But if you do sell through your website, you need to get enough traffic to get sales. Again, you can follow Neil Patel for this. Another thing to keep in mind is building a good website that is modern, pleasant and lightweight. If you are confused about creating your official website, you can easily hire a web developer. Problem is, most of them charge a shitload for the job. But you can get the perfect website for your brand from us at a fraction of the cost. Visit this link and see which service you need. PS: It’s extremely affordable 😉 After you’ve set up your website and you have your inventory, it’s better to sell in flash sales as then you can easily meet the shipping needs as well as keep costs low as you no longer would have excess products. Flash sales are quite frustrating for the consumer, but it is a good way to keep your costs low.   Keep in mind that you need to have good product photos to kind of ‘manipulate’ consumers into buying your goods! If photo editing is not what you do and you’d want to keep costs low and not hire an editor, we’re here to help. You can buy LUTs to edit your photos in one click (starting from $1) or you can send us the pictures to edit (normally costs $5/photo but we can work out a deal 🙂 ) We have now covered all the bases for starting you successful smartphone company. Keep on hustling and grinding and success will follow. I hope you’ve liked this post and it has been of help to you. Comment below if you want me add in something. Join our mailing list to always stay updated and get more researched strategies like these.  

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