Xiaomi and OnePlus proved that it is possible to start a successful smartphone company, even with limited resources. Here’s their strategy in a nutshell:
- Create a compelling product for tech enthusiasts
- Sell it direct as a loss leader
- Limit production to create scarcity
- Build awareness and demand
- Sell profitable related products and services
- Scale production once component costs drop
Small Chinese companies like Xiaomi and OnePlus were able to create markets even while competitors like Apple and Samsung spend billions in advertising their smartphones. Their success is a blueprint for others to follow, whether you’re running an established smartphone company or starting one.