Xiaomi has been able to make commercial deals with all kinds of companies, which have manufactured products ranging from home appliances to clothing. Now, their most recent deal is a commercial relationship with the smartphone manufacturer Meitu, which, according to the strategic cooperation, ends up being an agreement where Xiaomi would be responsible for selling their products.
Society between Xiaomi and Meitu
According to an official document released by Meitu, they indicate that Xiaomi will obtain an exclusive global license, with which they will be able to use the name of the brand internationally in certain technologies of the company. All this of course, in relation to the future smartphones of Meitu excluding the Meitu V7. Thanks to this new commercial relationship, Meitu and Xiaomi will manufacture new smartphones together, which will have as main objective a female audience. According to the document, the phones will be designed, developed, manufactured, marketed and sold by Xiaomi, while, on the other hand, Meitu will be responsible for providing their image technology and photographic algorithms.
Something interesting is that the article also reflects the fact that Xiaomi will be able to manufacture another series of devices with the name Meitu. After this, the 2 phases in which this association will be divided are specified:
Phase 1: There is a specific number of smartphones that Xiaomi and Meitu will manufacture together for the sale, at the moment that Xiaomi reaches the agreed figure, 10% of gross profits will be given to Meitu. This will continue until, within a period of 5 years, Meitu receives a certain amount of gross profit in the manufacture of said tElephones. After this extended period, Xiaomi will decide if they want to advance to phase 2 and continue with the society or not.
Phase 2: Xiaomi will pay Meitu a specific amount for each sold smartphone that has been developed together for a 30 years period, subject to a minimum annual profit of USD10 million.
Another highlight of the document is that it indicates that in the other devices that are developed together that are not smartphones; Meitu will obtain a total of 15% of the participation, as well as the gross profit for 30 years. In the document, it is mentioned that Meitu has sold a total of 3.5 million smartphones since their opening in 2013, although it is not much, the truth is that it is quite substantial and for that reason they decided to work with a commercial partner such as Xiaomi, to seek to expand its user market on a larger scale.
The main reason for choosing Xiaomi was its record number of sales in smartphones (more than 100 million units from January to October 31 of this year) in addition to its amazing IoT platform. Something also clarified by Meitu, is that the phones manufactured together will come with the photos and social networks apps of this company pre-installed, so their user base should grow. At the moment the only thing that can be done is to wait and see what happens with this business relationship.
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