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The 'Apple Of China' Might Be In Trouble

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The 'Apple Of China' Might Be In Trouble

Xiaomi, China's answer to Apple Inc. (NASDAQ: AAPL) is in "serious trouble," at least according to Business Insider.

The Chinese firm not only compete against Apple's iPhone devices in China with a $225 smartphone, but also launched a laptop that holds its ground against Apple's Macbook Air and sells for $540. Xiaomi also took on GoPro Inc (NASDAQ: GPRO) with its own action camera alternative that sells for a fraction of the price.

Related Link:Xiaomi Takes On Another Tech Behemoth With 2 New Launches

The Business Insider report stated that Xiaomi's smartphone sales fell by 38 percent in the second quarter of 2016. The company sold around 10.5 million smartphones in China, down from 17.1 million in the same quarter a year ago, and its market share plummeted to 9.5 percent from 16.1 percent.

This is a troubling figure and may signify a greater than expected weakness in the Chinese smartphone market. However, a chart provided by Business Insider showed that OPPO recognized a 124.1 percent year-over-year growth in the quarter and vivo realized a 74.7 percent year-over-year growth.

Business Insider added that an analysis by the research firm IDC indicated that Xioami's downhill was due to the company's lack of marketing activity, especially compared to its peers that spend heavily and use "brand ambassadors" to promote their devices.

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