The way Chinese tech companies should work together

Late last week, executives from Xiaomi and LeTV butted heads on Weibo over LeTV’s claim that it has the first “borderless” smartphone. It started with Xiaomi CEO Lei Jun mocking the borderless claim since LeTV’s phone does have thin black screen borders. After a rebuttal from a LeTV executive, LeTV CEO and founder Jia Yueting chimed in with this apparent message of peace: “I hope Chinese companies can work hard together to overtake the iPhone hand-in-hand, push forward progress in the industry, and create greater value for consumers”.

This message of unity is a frequent refrain in China’s domestic smartphone industry. It’s also a complete sham.

In actuality, most outside observers would agree that LeTV’s true intent is to compete with Xiaomi. Its smartphone pricing is far closer to Xiaomi’s than Apple’s, and in fact LeTV is even making a similar claim to one Xiaomi once made: ‘our goal isn’t to profit from hardware sales.’ LeTV’s true strategic approach is often summed up in the Chinese press with the expression: “openly fight Apple, secretly fight Xiaomi.”

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Source: TechinAsia

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