Netflix of China Threatening to Surpass Xiaomi

Published Date : May 05, 2015

The newly available low-priced smart phones from the company called as Netflix of China is threatening to surpass the Xiaomi’s dominance in the market for competitive consumer device, smart phones. This sleek Le Max, Le1 Pro, and Le1 are the products of the China’s online firm called LeTV which has made it available for consumers to pre order their phone in China on Tuesday.

This company is famous for its video and television streaming, LeTV is currently the powerhouse in the Chinese entertainment industry and offers everything from the local shows to American favorite shows.

This Android-powered devices run on the LeTV’s Ecosystem User Interface which is a system that transmits the firm’s entertainment database to the phone coupled with the fact that they are also very competitively priced, as the entry level phone from his company comes at a price of US$245, as compared to the Mi Note from Xiaomi which comes for a price of US$370.

The unique feature about this phone is that is not from a phone vendor in their phone business can be compared with Amazon. And their core business model is into selling content hence the phone is just an enabler, similar to Amazon’s phones and tablets.

Xiaomi has been in an aggressive drive to develop online television content during the past six month. However last year in November the company said that they would be spending around US$1 billion to do this and has acquired as stake in the country streaming site called Youku Tudou and invested around 300 million US dollars on Baidu’s video arm called iQiyi. However, the effort of Xiaomi overall is pale as compared to the over 500 million daily viewers which the LeTV draws.