If 2019 was a difficult year for Huawei, it also showed other brands what they could risk. For its part, Xiaomi seems serene and claims to have a "plan B".
The Trump government dealt a serious blow to Huawei in 2019 by prohibiting American companies from doing business with the Chinese firm. Google and Qualcomm in mind can no longer provide their services to one of the largest smartphone manufacturers in the world. Fortunately for Huawei, the group is very solid and has a few alternatives, notably to do without Google.
Other Chinese brands may nonetheless have questions. If the attack seems particularly targeted at the moment, an anti-Chinese surge on the part of the United States could harm all the builders of the Middle Empire.
Xiaomi stands by
Asked by Xataka on the subject, Abi Go, world product manager of Xiaomi, was confident. At the moment, Xiaomi is not in the viewfinder of the United States and there does not seem to be " contagion effect". She also recalls that the brand regularly works hand in hand with Qualcomm for its smartphone chips or Google for its IoT (Internet of Things) products.
But Xiaomi does not close its eyes to less radiant possibilities and is already preparing to deal with any eventuality. " If something happens in the future, we have a plan B", She said before adding:" among other things, we invest a lot in several semiconductor manufacturers in China".
Recall that a large part of Xiaomi's turnover is made in China and India, where Google services are not as important as in Europe or the United States, and that a simple change of supplier for its SoC would already be enough to reduce its dependence on American brands almost to nothing.
No Will to Oppose the United States
For the moment, however, Xiaomi does not consider this option as its main long-term plan. " So far, we have chosen to incorporate the best components into our products, and we will continue to do so in the future", She specifies, arguing that"(Xiaomi's) business strategy should not be conditioned by decisions made by politicians".
After trying to develop its own processors, Xiaomi does not have the immediate intention of posing as an alternative to the existing market and therefore prefers to stick to what it can do: offer "attractive products at fair prices". Unless the brand cares more about the U.S. market than that, there is little chance that the Trump government will pay close attention to their case anyway.