April 19, 2021
Affordable Smartphone Options Rapidly Shrinking In The US With Banning Of Xiaomi
“Today, the Department of Defense released the names of additional “Communist Chinese military companies” operating directly or indirectly in the United States,” says the DoD announcement.
Xiaomi was blacklisted by the US government in January of 2021.
What is interesting is that Xiaomi is displacing Huawei in China by volume and is establishing itself as a brand in China and potentially outside of China as well.
Factoring in the demise of LG’s Smartphone business (https://www.linkedin.com/feed/update/urn:li:activity:6786288554881503232/) whose volume was at the low-tier to mid-tier; the number of options available to US Smartphone consumers is becoming more limited.
We anticipate further consolidation in the Smartphone OEM and ODM space; and you could see another major global brand close it’s Smartphone business in the next 6 to 18 months.
Long story short Xiaomi was going to enter the USA with aggressively priced devices in mid-tier and low-tier and then grow into the High Tier once their brand was established.
It’s not going to happen and this means higher prices for hardware.
Affordable Smartphone Options Rapidly Shrinking In The US With Banning Of Xiaomi
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