Xiaomi Aims To Conquer The West With $1 Billion Loan

Author Wouter Wargerink 8.8.2017. | 15:11

One of China’s largest Android phone manufacturers – Xiaomi – has just secured a 1 Billion Dollar loan that is aimed at helping the company’s international sales and development.

Although it is one of China’s largest Android smartphone and electronics producers, Xiaomi is a brand still relatively unknown to the rest of the world. Inside Asia, the latest Android phones produced by Xiaomi are known to be high-end yet affordable. This has made Xiaomi one of the largest smartphone companies in the world. Its main sales do, however, mainly come from China and India. The Western markets are currently still largely outside of reach for the company.

 

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Throughout the past, Xiaomi slowly tried introducing their Android phones to the West. The company did, however, never take measures to its full extent. This situation is now expected to change since the company has just obtained a massive $1 Billion loan.

This three-year syndicated loan will be granted to the Chinese tech giant by a total of 18 banks from across Europe, Asia, and the Middle East. The main players in this deal include Deutsche Bank and Morgan Stanley as well as the Bank of China Limited, the Wing Lung Bank, and Deutsche Bank AG.

In the past, Xiaomi has raised large sums of money through venture capitalists. As of now, there is no suggestion that the Chinese smartphone company is currently aiming to raise more money through private investors.

 

This $1 Billion loan obtained by Xiaomi will mainly be used for furthering the development of the company’s international sales. At the moment, Xiaomi sells its products in approximately 20 countries – most of which are in Asia. Its two largest markets by far are China and India. The number of countries in which Xiaomi is selling its smartphones is expected to increase significantly during the coming years. With this loan, the Chinese tech giant will mainly try to drive its products into brick-and-mortar stores located overseas.

Now that the Chinese tech giant has obtained yet another massive loan, it is expected that Xiaomi is finally getting serious about conquering the West. Although they did not specify which new countries they are aiming for, it is expected that this Chinese Android phone producer will focus on the European and American markets. Recently, Xiaomi has already signed several patents and cross licensing deals with Nokia. This suggests that the Chinese company truly has its eyes set on the West.

 

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During the past 2 years business has been difficult for Xiaomi. Sales slowed down drastically and the company even declined to make their full annual numbers of 2016 public. The past three months, however, the Chinese smartphone company is getting back on its feet again. They have shipped over 23 million Android phones which is a whopping 70% increase compared to the previous quarter. Right now, Xiaomi is aiming to continue this growth not only in its domestic market but also abroad.

Author Wouter Wargerink 8.8.2017. | 15:11
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