Xiaomi Shuts Down US Sale of Smartphones
- Tuesday, February 2nd, 2016
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Phones made by Xiaomi, the China-based smartphone manufacturer, briefly went on sale in the US for the first time earlier today through mobile virtual network operator US Mobile, but it quickly emerged that the network had no deal with the Chinese startup and the phones quickly disappeared off its site.
Xiaomi is currently the third biggest smartphone maker in the world, and has made its name with budget and low-end devices which have proved incredibly popular in China and surrounding Asian markets. So far, it has avoided more mature markets like the US and Europe, with only peripherals and accessories like fitness trackers and headphones previously available.
American virtual network operator US Mobile, which uses T-Mobiles network, announced it was importing a number of Xiaomi handsets from China and selling them online, but placed several restrictions on what it it was offering US consumers, limiting the sales to older models like the Redmi 2 and Mi 3. In addition, the network claimed that due to differences in manufacturing standards, the phones wouldnt work with the latest LTE technology and would not run on high-speed 4G networks in the US. It also offered access to Meizu handsets, another large Chinese manufacturer previously unavailable in the States.
“US consumers have traditionally had to compromise to afford incredible devices,” said Ahmed Khattak, CEO and founder of US Mobile. “Now, with the launch of our marketplace, we are thrilled to offer a complete range of exceptional smartphones for low monthly payments, and to give our customers access to exceptional phones otherwise not available in the US.”
However, the announcement proved to be premature, as reports quickly suggested the network had no deal in place with Xiaomi and Meizu, and was instead working with distribution companies in a grey market deal to bring the handsets into the US. This morning, Xiaomi issued a statement confirming that the devices were being sold by US Mobile without its permission.
“Recent reports have indicated that Xiaomi products will be available in the US,” said Kaylene Hong, a spokesperson for Xiaomi in a statement to the International Business Times. “There are no plans to sell smartphones through any authorised distributors in the US. US Mobile is not authorised to sell Xiaomi products in the US.”
While Xiaomi has declined to confirm if it will be blocking US Mobiles sale of its smartphones in the US, the devices have disappeared off the MVNOs website.