Chinese smartphone maker has invested RMB 1.27 billion (US$200 million) into home appliance manufacturer Midea Group, according to a press release sent out by the former. Xiaomi will take a 1.29 percent stake in Midea.
The two companies will cooperate on building their smart home ecosystem. That means Xiaomi products will likely integrate with Midea’s wide range of products, from refrigerators to air conditioners to washing machines.
Midea sold 250 million home appliances in 2013.
Prior to the deal, Midea already developed a handful of smart home products in the areas of nutrition, water, and energy, with about 25 on the market as of this year. Xiaomi says Midea’s strategy is in line with its own, so the two make a good fit.
In addition to its own smartphones, tablet, wifi routers, smart TVs, fitness band, and set-top box, Xiaomi has recently unveiled several new co-branded smart gadgets with smaller hardware companies. Those include a webcam, blood pressure monitor, lightbulb, air purifier, and a wall plug.
Xiaomi says it plans to invest in 100 hardware companies, and it already has 25 on board.
Xiaomi is up against the rest of China’s internet giants to grab early market share and set the standard of for smart homes. Tencent, JD, Baidu, Alibaba, and a few others are all battling for dominance on their respective protocols and platforms. Xiaomi looks to be the biggest hardware company on the playing field, though, which should work to its advantage.
See: Xiaomi’s first smart home gadgets launch this week, and they look awfully familiar
This post Xiaomi plows $200 million into Chinese appliance maker Midea to get ahead in the smart home race appeared first on Tech in Asia.
Xiaomi plows $200 million into Chinese appliance maker Midea to get ahead in the smart home race
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