Apple should buy Xiaomi?

by Rosgani 6


According to foreign website, Forbes, the Xiaomi smartphone manufacturer is ready to sell, and Apple would be interested in the acquisition of Xiaomi manufacturer.

The news is still a rumor and it’s seems that’s not true. But in the global economy, almost every company can become a takeover target or acquirer, but the premise is to be able to produce a synergistic effect, and the timing and the price is right.

Xiaomi is part of the “corporate sector” in China, the mobile phone operators from the United States, where opponents have learned a lot.

Xiaomi draws on the experience of Google and Apple. From Google, where Xiaomi adopted the open operating system platform, in order to win the favor of consumers. And from Apple, Xiaomi learned brand. In addition, Xiaomi also learned to rely on innovation rather than simply imitate competitive way.

From Google and Apple, where the lessons of experience have helped Xiaomi greater brand in the Chinese market to challenge Apple in this market, the price of Xiaomi has obvious advantages.

The following is Apple’s acquisition of Xiaomi is wise for two reasons. First, through the acquisition of Xiaomi, Apple will be able to eliminate the world’s largest, fastest-growing Chinese market, its strong competitors, but also enable it to market in China doubled overnight, Flurry published in accordance with the company’s mobile business analysis Data show that Xiaomi smartphone market in China accounted for 5% of the share. Moreover, Apple has a larger market share, it will help the company to respond effectively to market leader Samsung competing companies. Second, with the developed markets of the smart phone market is approaching maturity, Apple have also a growing concern. If the acquisition of Xiaomi, in the case of non-destructive brand image, Apple will be able to enter China’s rural and low-cost smartphone market in Southeast Asia.

Realistically speaking, this strategic move is impossible. Traditionally, Apple has been relying on acquisitions rather than organic growth strategy to develop. In addition, receiving a Chinese company is also a tricky business, which involves a lot of legal issues. In addition, there are some other factors that will lead to foreign takeovers of Chinese enterprises is difficult to deal.

Simply put, the synergy between Apple and Xiaomi may exist, and given Apple’s strong capital, the transaction price should not be a problem, but the timing may be premature.

Although not dare bet on such a deal, but if Apple reached with a low-cost smartphone manufacturers sometime in the future so that a deal is not surprising, because the “smart phone battle” in the “bottom of the pyramid “- low per capita income of many consumers transfer.