Is Xiaomi really an Apple (NASDAQ:APPL) Clone?

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As the “Apple of China” has started making headlines, it isn’t playing too well with the actual Apple (NASDAQ:APPL) team. Recently, Jony Ive, Apple (NASDAQ:APPL)’s design head showed his frustration with Xiaomi Tech. At a Vanity Fair conference, the designer accused Xiaomi of theft. He said these designs weren’t flattering enough and portrayed a lazy vision on Xiaomi Tech’s part.

As a result the Xiaomi president, Bin Lin stated in China News Service that one can’t make such accusation or arrive at such conclusions without having used or experienced the gadgets. Hugo Barra, the VP for the international market of Xiaomi pointed fingers at the new iPhone 6’s design language, declaring it a copy of the HTC (NASDAQOTH: HTCCY).

Xiaomi has never had a problem being compared to Apple (NASDAQ:APPL).  In fact, it seemed quite pleased with its comparison with the Apple (NASDAQ:APPL) versions. CEO, Lei Jun has gone a step further; making appearances dressed like Steve Jobs’s trademark black turtleneck and jeans. He even make references to and copies Apple (NASDAQ:APPL)’s statements. But this is all on the surface. If we look deeper, peeling off layer by layer, we will see that Apple (NASDAQ:APPL) and Xiaomi really aren’t very much alike.

It seems that Mi 4, just like other Android phones, such as Sony (NYSE:SNE), Xperia Z3 and Samsung (NASDAQOTH: SSNLF) share the iPhone 5 designs. It just seems like Xiaomi is just another android smartphone in a fake Apple (NASDAQ:APPL) case. But such borrowing and sharing has also been part of Apple (NASDAQ:APPL)’s game. In the past, Apple (NASDAQ:APPL) has borrowed designs from its competitors like Google (NASDAQ: GOOGL), LG and HTC (NASDAQOTH: HTCCY).

In comparison to these brands, Apple (NASDAQ:APPL) offers a much mediocre hardware, and yet; continues to sell.

Ivy has accused Xiaomi for stealing its Android version, which is presumably too close to the iOS. However, several other brands use similar versions. Hence, it’s unfair on Ivy’s part to point finger at Xiaomi and not others.

In terms of set strategies and business models, both Apple (NASDAQ:APPL) and Xiaomi seem to be using very different approaches. Apple (NASDAQ:APPL) is known to make expensive looking phones but are embedded with average hardware; sold at high price. On the other hand, Xiaomi makes expensive looking phones with high-end hardware that are set at low prices. These strategies seem to be working for both the companies. Apple (NASDAQ:APPL) is considered a top brand in the world, whereas Xiaomi has just taken the position of the fifth largest smartphone maker.

Both companies enjoy the luxury of loyal fans; hence spend much less on advertising as compared to their competitors. Apple (NASDAQ:APPL) spends only 0.6% of its revenue and Xiaomi, around 1%. Both are doing good business and uphold reputation.

In conclusion to the above facts, it’s obvious that Xiaomi might not be the best innovator, but it is doing what all other smartphone companies did at one point; borrowing and adopting improvements from other companies that work in their favor.

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