Xiaomi's Recent Fire Sale Sees 1.3M Devices Fly Off the Rack (AAPL) (GOOG)
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Apple's (Nasdaq: AAPL) competition in China isn't Samsung. It's Xiaomi.
Okay, maybe Apple's main rival is Samsung in China, but there are other fish to fry. And those fish are starting to fight back.
Xiaomi reported selling 1.3 million phones in a 12-hour period Tuesday during a recent fire sale. That equates to revenue of $242 million for the China-based device manufacturer.
The promotion -- dubbed 'Mi Fan Festival' -- offered prearranged versions of its Mi3, Redmi, and Redmi Note devices. The sale happend for customers in Hong Kong, Taiwan, mainland China, and Singapore. The majority of Xiaomi's revenue came from mainland China, to the tune of $225 million.
While overall profitability for Xiaomi is low, the point is that each device sold in China is one less opportunity for Apple (or Samsung, for that matter). Are the customers the same? Potentially. But, a $186 device is much, much different than one with an $80 price tag.
Benefiting from the sales will be Google (Nasdaq: GOOG), given that the devices run a version of Android.
Shares of Apple are positive early Wednesday.
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