Why it makes sense for Xiaomi to take on selfie king Meitu’s smartphones
Xiaomi expands smartphone lineup while Meitu focuses on selfie software
Meitu is best known for its selfie apps. They’re so ingrained in the company’s identity, you’d be forgiven for not knowing it also makes smartphones -- which tells you how few units they sell. So perhaps it comes as no surprise that they’re handing this part of the business to a company more well-known for selling handsets: Xiaomi.
MEITU: ADAPTING TO A SHIFTING LANDSCAPE
But Meitu’s shifting strategy reflects not just a reckoning of its strengths. It also points to its struggle in an increasingly cutthroat smartphone market.
Meitu’s handsets are pretty distinctive. Unlike the plain black rectangles favored by virtually every other smartphone maker, Meitu handsets tend to be curved at the top for a pretty logical reason -- the selfie camera. Meitu smartphones have noticeably bigger cameras on the front than most other smartphone makers.
Those handsets once made up the bulk of Meitu’s profit. Before its 2016 Hong Kong IPO, its app business was actually losing money. But things have changed dramatically since then.
As smartphone sales in China plunged in the last year or so, Meitu, like other smaller players, found themselves grappling with a new reality. In the first half of this year, Meitu sold 37% fewer smartphones year-on-year. It’s a downward trend that Meitu doesn’t believe it could buck on its own.
