Xiaomi makes the best cheap gadgets on the market. The company started out cloning existing gadgets like the iPhone 4 and iPad mini (and even Apple events), but has shifted to designing and developing its own wares and selling them for dirt cheap. It already sells several smartphones and a streaming TV device. Now reports state that the company will soon release a fitness tracker.
Xiaomi released its first smartphone in 2011 and has since gained a small, but exploding market share in mainland China thanks to its low-cost selling strategy. Xiaomi’s products are cheap. Reports state that its fitness tracker could cost as little as 199 Yuan (about $32) in China.
White label fitness trackers are readily available on bulk seller sites like Alibaba where they can cost as low as $5 a unit. Xiaomi will likely add several innovative features to a basic unit. The company should be able to undercut established companies like Fitbit and Jawbone by selling a similar, basic fitness tracker while still making a healthy margin.
Xiaomi saw revenue of $5.22 billion USD in 2013.
Don’t expect to see Xiaomi’s latest phones or this fitness tracker in over-saturated markets like the U.S., though. The company is wisely focusing on developing regions where low price tags are more important than brands. It recently announced an international expansion that includes selling devices in India, Brazil, Russia, Turkey, Mexico and in several east Asian countries and emerging markets later this year.Update: A previous version of this story incorrectly stated that Xiaomi wasn’t known for adding innovative features to their products. IMAGE BY Bloomberg