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Xiaomi Inc is taking a major risk

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In 2016 Xiaomi Inc, a Beijing based company had a notable slide down in its market share. The company deals with the manufacturing and distribution of mobile phone and consumer electronics. Basically, the brand aims to cater to the needs of the lower-middle market and has a loyal fan base.

The market share moved from first to the fifth place which they avoided publishing in the sales figures. The company usually boasts its sales figure in the market.  2017 does not seem to be going all that wonderful, either. The international head of the company Hugo Barra jumped ship. A few days later it reported that the company has nothing planned to showcase at the mobile world congress. Now, the mobile show is the biggest phone show of the year.

Xiaomi Inc is planning on elite market competition

Wall Street Journal reports that Xiaomi Inc.  is planning to join the likes of Samsung, Apple and Chinese manufacturer Huawei (which are in the line of elite club smartphone markers) by building their own processors. Xiaomi Inc is planning on taking their position to the next big level. The sources in the article point out that the phone company is launching its own pinecone chip within a month (that could have been a terrific timing for the mobile world congress). The chip is claimed to be an associated product of Beijing pinecone electronics. Beijing pinecone electronics is linked to Xiaomi Inc through a $15 million technology buy from Datang subsidiary leadercore technology ltd.

Read: Xiaomi Mi Mix will make you forget every phone 

The move is both risky but also very pricey. One of the risks associated is its benefit of undercutting prices of the competition. However, this move can make the company standout from the ever growing number of smartphone manufacturers in its country of origin. This would make Xiaomi less reliant on Qualcomm. Qualcomm is under extreme patent issues in India, which is a large market for smartphone manufacturers. It had recently launched the Snapdragon-powered Redmi Note 4 this year.

In Indonesia, Xiaomi pushed towards growth in market by opening a new plant this week. The goal is to manufacture up to one million phones this year for its local market customers.

Image via The Droid Guy