Exactly How Big is Xiaomi in China?

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Aug. 29 (Bloomberg) – On today’s "Drill Down" Cory Johnson reports on Xiaomi, the fast-growing maker of cheap smartphones and their dominance in China. He speaks with Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Live from san francisco, welcome to "bloomberg west." we cover the global technology and media companies that are reshaping our world.

I am emily chang.

Our focus is on the future of business.

Let's get to the rundown.

It is beating apple in the world's largest market, china.

Already claiming a larger share than apple.

It is a deal that has fallen apart in the past.

The rise in bank is trying to buy tryingvodafone -- trying to buy out vodafone.

Dropbox makes sure its employees have plenty of perks on the job.

We go behind the scenes.

First to the lead, the smartphone maker in china has replaced a top executive.

The android executive is leaving to join xiaomi.

The news was announced on the barra google plus page.

The google founder is separating from his wife.

The company is expected to unveil two major products.

Here to explain how big xiaomi is corey johnson.

What can you tell us?

The company launched with $40 million in funding in 2010. they launched the mi1 in august of 2011. the company got a lot of attention after the new york times suggested they wanted to be that apple of china.

There are counter arguments on the web suggesting there were not a lot of chinese articles to back up the same thing.

They have had limited success.

How did xiaomi become a dominant player?

They sell directly from their web site and use android software for their phones.

When they launched their second phone, the mi2 -- one wonders if they will get to mi6 and sell it in britain.

I doubt ift.

There was a scarcity marketing tactic of saying they were sold out, when they were not.

What does it mean for apple.

There has been reporting that apple is working on a cheaper iphone.

Apple's biggest revenue stores are the stores they have in china.

They have had limited success in china because they are not on the biggest carrier, china mobile.

To have the great success they would like to have, they would have to be with the big carrier.

Corey johnson, our editor at large.

Thank you.

According to research, xiaomi holds the sixth spot ahead of apple.

Apple is still in second place.

Pete joins us on the phone from london.

What do you think of this hire by xiomi?

-- xiaomi?

We are talking about a significant figure in the mobile industry.

He has tremendous experience in the mobile industry.

Back in the days when the android market share was the same, now they have 80% market share on a global basis.

He has a tremendous amount of experience.

This is a huge higher.

It is a chinese company that many of -- many people have not heard of.

Tell greater than greater thanxiaomi.

-- tell us about xiaomi.

Is it doing so well?

If you look at the cellphone makers, you have samsung, motorola, they have a hardware approach to market growth.

They took it as a services play a total -- a totally different approach to the market.

Xiaomi believes the profit will be in services.

They have smartphones and are selling them almost at cost.

That is why they are doing so well.

The ceo of xiaomi has been branded the chinese steve jobs.

He is very charismatic.

He is a fantastic presenter.

He is not a typical asian ceo.

He created a really cool brands.

Yuan over investors.

The one -- he won over investors.

The ceo is known as the steve jobs of china.

Xiaomi is having a huge event on september 5. we have been invited to it.

We hear they may be unavailing two new products.

What do you think it will be?

There are reports it could be a television product and will be apple to the punch.

I think the thing is there will be significant products.

The important thing is that we are talking about a company that has not shipped a product outside of china.

China is the largest smartphone market in the world.

They are not playing on the international scene.

That is what this appointment brings.

He brings fantastic experience.

He has relationships with international carriers.

He has relationships with ecosystem partners.

If these products are domestic products, it is a clear sign that this company has ambitions to move internationally.

At the same time, this has implications for apple.

What about the other android players?

Xiaomi can drive down the price and other android players will struggle.

These companies are going to be major forces in the future.

They are already beginning to shape how the mobile industry is going in the future direction.

The internationally established names we all know, the samsungs , the htc, are strong in the u.s., but not strong internationally.

They are beginning to feel the pain on a global stage.

The chinese vendors will be dictating the future of the mobile industry as we go forward.

P. cunningham, thanks so much for joining us -- pete cunningham, thanks so much for joining us.

Xiaomi plans to unveil two new products on september 5. "bloomberg west " will be there.

Sergey brin has reportedly been separated from his wife and is having an affair g for anoogle staffer.

-- google staffer.

? today's bond market update is brought to you by pioneer investments.

Today's bond market update was brought to you by pioneer investments.

We searched the globe for value, navigate with knowledge.

This is "bloomberg west." sergey brin is facing a story right out of the gossip column magazines.

He and his wife have separated.

It comes amid reports that brin is having an affair with a google staffer.

That same employee was also linked washugo barra.

-- with hugo barra.

This is a hugely personal story.

Could have business implications because brin reportedly had an affair with a google employee.

It is terribly unfortunate for sergey and his family.

Does it hurt bluebell -- google?

I am not entirely sure.

He has been working on driverless cars.

It does hurt his credibility a little bit.

He has been the public face of google, weighs one of the more idealistic faces of -- always one of the more idealistic faces of google.

It makes it hard for him to talk about high minded things when he has this personal issue.

Could there be losses because he works together and he is in a powerful position.

His sister is the senior vice president.

Her husband works as google.

We do not know.

They are claiming it is somewhat amicable.

The face of android has left the company to go to xiaomi in china.

Already, there have been some repercussions.

If it is related, hugo is hugely important to android and the future of mobile.

If that is a consequence of this, it could have a negative impact on the company.

Right now, we do not know.

It is an awkward time to be in senior management.

This has happened before at companies.

Mark hu rd had an inappropriate relationship with a contractor.

Could this go down bad path?

Mark hurd was accused of sexual harassment.

Brian dunn had to resign.

Sergey 0 16.9% of the company.

He is not going anywhere.

. sergey owns -- sergey owns 16.9% of the company.

He is not going anywhere.

Facebook is addressing key issues surrounding privacy.

Facebook is working to provide clear and simple language on how it may use a member's name and picture for advertising purposes.

This also includes having minor s and verify that a parent has approved of them being part theman ad.

This came out of a class- action lawsuit from 2011. our bloomberg news editor.

Good to see you, as always.

Facebook has so many privacy stories, i cannot keep it straight.

This is a class-action lawsuit about sponsored stories.

American samoa facebook looks for ways to use the information that we supply to them to help them sell advertisements, part of that is including images in newsfeeds.

If you are scrolling through a newsfeed and see that my friends like this product, did bake consent of having their newsfeed use in an ad.

Did they consent to that?

Of course they'd be.

They are trying to make it more clear that you know what you are consenting to and what you are not consenting to.

Minors will have to show that, i ran this by mom and dad or by a guardian, to show facebook that you can use this stuff.

I am giving you the commission.

What facebook needs to do is take the extra stock -- step to make it abundantly clear to the user.

You hit the nail on the head in the beginning.

The facebook user is the product.

Supplying the products to be marketed, it changes the rules when they use products in a way that cannot be marketed.

You raise a really good point.

The fact is, we signed into social media all the time.

Even with all of the attention to privacy and all of the house -- hot water facebook kids into, when was the last time you went back and check your privacy settings for various social media.

? i do it all the time because i am paranoia.

Will this impact their business in any meaningful way?

The more you learn about how facebook is using data, the more guarded you will become.

There is no sign that these clarifications are going to be what makes the difference.

Remember, they have 1 billion users around the world.

These people are already signed up.

The likelihood of you going in and saying, they just clarify this for me and i will check my user settings.

Paranoia is good for you.

A lot of people are not paranoid.

It is hard to say there will be this wave of people who will go back and say, i will not let my image be used in this advertisement.

The chances of that are pretty slim.

We do not have any evidence that there will be a rush of people changing their settings.

Thank you very much.

Silicon valley has long been known for its crazy perks.

Could the dropbox headquarters be the craziest of all?

We will be right back.

? welcome back to "bloomberg west." dropbox is one of the leaders in cloud storage.

It is also one of the leaders of something else, boasting one of the most perk-filled headquarters in technology.

We got a look at all the all actdropbox headquarters -- at dropbox headquarters.

There is a lot of stuff like this around the office.

The office is pretty fluid.

We can do what we want.

It helps getting around the office.

Can you do it?

I cannot do it.

It seems like everybody is offering pretty good perks these days.

We are probably maybe the best.

If you want to take a break, we have the music room.

If you have a meeting and you want to chill out, there is the lego room.

It seems like a san francisco startup.

Does this all makes sense to you?

It is a strange world.

They have a lego room?

From inside, it all makes sense.

Hwat is halp?

-- what is halp?

It is an expression like, help me.

What takes place sunday hanging bed?

>-- on the hanging bed?

It is a chill out space.

We have swinging bench and this love seat thing.

Do you have a favorite rahm?

-- room?

Most of the stuff is not dropbox be selling on us.

It is more like a community.

We will be speaking with the dropbox head of business and mobile on september a 11. it is time for on the markets, a look at what is moving on the markets.

Olivia sterns is in new york.

Stocks are climbing for the second day in a row over concerns -- as concerns over syria continued to dissipate.

Retailers surging after reporting second quarter profits.

Seaworld shares bouncing back today after nosediving yesterday.

The stock fell to its lowest level after going public.

There was a drop in attendance.

More "bloomberg west" after the break ? . .

This text has been automatically generated. It may not be 100% accurate.


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