If you’re thinking that Xiaomi’s mission is eventually to take over all the Chinese OEMs that they can buy, we can’t fault you for thinking that given its current buying power. Their latest acquisition is taking over the hardware business of selfie app and smartphone maker Meitu which may signal even more selfie-focused products for Mi Home stores across the globe.
Because camera software is their strength, Meitu will continue to be involved in the development of products that will need it. Their smartphones will also still carry their brand but Xiaomi will be the one to take over when it comes to design, research and development, and sales.
Meitu shares that their mission is to “inspire more people to express their beauty” and in order to get as many people on board as possible, their Strategic Cooperation Agreement with Xiaomi is necessary as they are the “perfect partner” that will spur further growth. And since they also have software products, Meitu will benefit from pre-installations in expanding their social network user base although it’s not clear if they will also be included in Xiaomi-branded devices.
On its end, Xiaomi will give a percentage of the phone profits to Meitu but after five years or when it has reached a certain number of units sold, they will then move to flat, per-phone licensing fees. They have the exclusive license to the Meitu brand particularly for hardware products except when it comes to certain skin-related hardware products.
This is just the latest in Xiaomi’s efforts to expand its brand not just in China but in other markets as well. They launched a new brand in India called POCO and also a new gaming smartphone called Black Shark. The latter targets male users while the Meitu brand is expected to appeal to the female users. Let’s wait for what the two brands will come up with next.
SOURCE: Meitu
