When it comes to affordable, high-quality electronics, the Xiaomi brand comes to mind almost instantly. The Chinese tech giant, whose logos are found on smartphones, TVs, electric scooters and even smart rice cookers around the world, has come a long way from a humble start-up to one of the largest corporations on the planet.
Founder and leader of the company is Lei Jun, often referred to in China as “China’s Steve Jobs,” whose charisma, strategic thinking and trend-seeking ability have created an ecosystem that today connects hundreds of smart devices. Understanding the history of the brand helps to better understand MIUI philosophy and the company’s approach to pricing.
In this article, we will explore the founder’s biography, the stages of the corporation’s formation, and the unique business model that allowed Xiaomi to become one of the leaders of the global smartphone market. You will learn how a university programmer turned into one of the richest people in China and why his strategy of “iron at cost” changed the rules of the game.
The Early Years and the Making of Lei Jun
The future founder of Xiaomi Corporation was born in 1969 in Xiantao, Hubei Province, China, and as a high school student, he displayed a remarkable ability in science and technology. Unlike many of his peers, Lei Jun made his early career choices by devoting himself to programming and software development. His dedication was so high that he often spent more time in the computer classroom than at home.
In 1987, he went to the famous Wuhan University, where he chose the computer science department, and it was during his student years that his views on the software industry were formed. Lei Jun was not just studying, he was actively working: he wrote code, studied the architecture of operating systems and tried to understand what makes a software product successful. He graduated with honors, which was a great springboard for a career.
His first major job was Kingsoft, where Lei took a job shortly after graduation, and his career was rapid, from a rank-and-file engineer to CEO, and under his leadership, Kingsoft became a leader in China's software market, competing successfully with Microsoft, and his experience in managing and building products became the foundation for the future founding of his own tech giant.
The birth of Xiaomi: 2010 and the first steps
By 2010, Lei Jun was already a wealthy man and a respected investor, but he had a dream of creating his own smartphone brand. He understood that the market was oversaturated with expensive devices from Apple and Samsung, and budget counterparts are of terrible quality. On April 6, 2010, Xiaomi Technology was officially registered. On this day, the founder and six other co-founders together ate a bowl of rice porridge - a symbol of simplicity and the beginning of a new path.
The company didn't originally plan to make hardware. Lei Jun's strategy was to build software first. The first product was Android-based MIUI, which offered users a level of customization and functionality that was not available at the time on stock Android smartphones. Enthusiasts from around the world began porting MIUI to various devices, creating a loyal community around the brand.
Just a year later, in 2011, Xiaomi introduced its first smartphone, the Xiaomi Mi 1. The device had flagship features, but cost half the price of competitors. Lei Jun bet on direct sales via the Internet, bypassing retailers, which allowed to significantly save on the margin of intermediaries.
The Iron Triangle Business Model
The company's success is impossible without a smart strategy. Lei Jun developed a unique formula he called the Iron Triangle, which is based on three pillars: quality, efficiency and innovation. The founder always insisted that Xiaomi is not just a phone maker, but an Internet company, an approach that has allowed it to grow faster than any other startup in history.
A key element of the strategy was to limit the net profit from hardware sales, with Lei Jun publicly stating that the hardware division’s margins would never exceed 5%, and all the rest of the profits reinvested in new technology development, lower prices for consumers, and an expanding ecosystem, enabling the creation of devices with top Qualcomm Snapdragon processors at the price of public sector employees.
The second aspect is the ecosystem: Instead of making everything on its own, Xiaomi has invested in dozens of startups that make smart lamps, air purifiers, power banks and other appliances, all of which are networked through the Mi Home app, and when you buy a Xiaomi smartphone, you are likely to want to buy other compatible devices of the brand.
The secret of low price
- 📱 Direct Sales: The absence of a distributor chain allows you to keep a minimum markup on the final product.
- 🔄 Internet services: The main profit of the company does not receive from the sale of phones, and from advertising in the system, cloud services and games.
- 🤝 Partner ecosystem: Thousands of smart home devices are manufactured by partners under license, expanding the range without inflating staff.
Development Stages and Key milestones of the Corporation
Xiaomi’s history has been one of rapid growth, with the company growing hundreds of percent annually in its early years; in 2014, Xiaomi became the world’s largest smartphone maker by sales, overtaking Samsung, a title it held for a short time; however, Lei Jun’s ambitions extended far beyond China, and began to expand into markets in India, Southeast Asia and Europe.
A milestone was the 2018 IPO on the Hong Kong Stock Exchange, which reached tens of billions of dollars, during which time the brand began to actively position itself as a premium, launching Mi Mix lines and collaborating with prominent designers, helping to move away from the stereotype of “cheap China.”
In 2021, Lei Jun announced the launch of the most ambitious project in the company’s history, the production of electric cars under the brand Xiaomi Auto. The development of the first electric car SU7 was allocated 10 billion dollars, the decision showed that the founder is not going to rest on his laurels and is ready to compete with Tesla and traditional auto giants.
☑️ Key milestones of Xiaomi’s success
Comparison of the founders of the tech giants
Lei Jun is often compared to other industry titans like Steve Jobs or Elon Musk. Indeed, his style of managing and presenting products is much from the founder of Apple. However, there are also significant differences in approaches to business and products. While Jobs was betting on system closure and exclusivity, Lei Jun chose the path of openness and accessibility.
The table below compares the key characteristics of the founders of the largest technology companies to better understand Lei Jun’s place in this pantheon.
| Criteria | Lei Jun (Xiaomi) | Steve Jobs (Apple) | Elon Musk (Tesla/SpaceX) |
|---|---|---|---|
| Year of foundation of the company | 2010 | 1976 | 2003/2002 |
| The main focus | Accessibility and ecosystem | Design and premium | Innovation and space/auto |
| Pricing strategy | Minimum markup (up to 5%) | High margins | Premium with gradual decline |
| Philosophy | Technology for All | Think Different | Accelerate the transition to energy |
| Key product | Smartphones and IoT | iPhone and Mac | Electric vehicles and rockets |
Fans Philosophy and Marketing
One of Lei Jun’s greatest achievements is to create a unique relationship with customers he calls “Mi Fans.” Unlike traditional corporations where the customer is just a source of income, Xiaomi listens to users’ opinions early in development. Weekly firmware updates to MIUI often included features offered by ordinary users on the forum.
The company's marketing was all about creating excitement, with limited flash sales creating a sense of scarcity and exclusivity, and Lei Jun personally blogged and chatted with fans, creating an image of an accessible leader, close to the people, saving billions on classic advertising.
Today, as the company has grown into a global giant, it’s harder to keep that connection alive, but Xiaomi continues to hold annual fan festivals where the founder personally presents the new products and thanks the community for their support.
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Note: Lei Jun is known for his performance, and in an interview he admitted that in the early years of founding Xiaomi slept in the office and worked 7 days a week, setting the same rhythm for the entire team.
Current status and future plans
Today, Xiaomi Corporation is on the Fortune Global 500 list. The company has successfully diversified risk: even as the smartphone market stagnates, sales of smart devices and home appliances continue to grow. Lei Jun has managed to build a conglomerate that feels like a startup: flexible, fast and ready to experiment.
But new challenges lie ahead: Geopolitical tensions, chip supply problems and fierce competition in the electric car market require the founder to focus fully. Lei Jun said he was willing to risk his entire reputation and fortune to succeed in the car project, which shows how high the stakes are in the current development strategy.
The founder’s impact on corporate culture remains absolute, his word is law, and his vision is the direction of thousands of engineers and designers. Lei Jun personally oversees the final approval of the design of key products, which ensures that the brand’s DNA is preserved even as production scales.
⚠️ Warning: Don't confuse founder Lei Jun with other Chinese billionaires like Richard Liu or Pony Ma (Tencent.
Frequently Asked Questions (FAQ)
How old is Lei Jun at the moment?
Is Lei Jun the sole owner of Xiaomi?
What education did the founder of Xiaomi receive?
Is it true that Lei Jun copied Apple’s ideas?
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⚠️ Attention: Information about the financial condition and position of the founder may vary. For current data, it is recommended to check the official reports of the company or recent publications in business media.
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Xiaomi is a unique example of how the strategy of “affordable flagship” and building an ecosystem allowed the Chinese company to become a global player of the level of Apple and Samsung in 10 years.