

Xiaomi, a Chinese mobile phone manufacturer, just released its first Android-based smartphone for delivery in October. With 300,000 pre-orders placed in just 34 hours, the company has had to halt additional orders for the time being. What makes the brand’s first product so enticing is its price – and functionality. Unlike Apple’s extremely popular iPhone offering, Xiaomi’s M1 has a 1.5-gigahertz (GHz) dual core processor and can run two operating systems at the same time (Android and MIUI). Our trendspotter Genie was so excited to get into the queue that she uploaded a screenshot to her Renren account, sharing her upcoming purchase with her friends (picture above).
Xiaomi’s CEO explains how the phone is specifically tailored for the market on TechRice, a China-focused technology site.

From the article:
“Lei Jun (the CEO) has a clear challenge for the rest of local Chinese mobile manufacturers makers: ‘My phone is quality and yours are Shan Zhai.’
The next bombshell Lei Jun dropped was pricing, at an incredible RMB 1999 Chinese consumers can expect to buy a Dual-Core 1.5G smart phone with more tailor-made features than any other phones available in the local market. This was certainly mostly unexpected prior Lei Jun’s announcement. Especially when other local smart phone makers are targeting their initial offering price around RMB 2500. The Chinese smart phone market will be facing a shake up when Xiaomi Phone launches for sales in October.
Apart from the local competitors, the higher end foreign smart phones will also face considerable pressure from this competitive pricing that can only be regarded as the initiation of a possible price war.