Η Xiaomi was able to make trade deals with all kinds of companies, which have manufactured products ranging from home appliances to clothes. Now, their latest deal is a new business relationship with the smartphone maker Meitu , which, according to the strategic cooperation, concludes an agreement, in which the Xiaomi will be responsible for the sale of its products.
The agreement between Xiaomi and Meitu
According to the official document released by Meitu , states that Xiaomi will obtain the exclusive global license, with which it will be able to use the Meitu company name internationally, in certain technologies of the company. All this, of course, in relation to its future smartphones Meitu except Meitu V7 . Thanks to this new business relationship, the Meitu and Xiaomi together they will build new smartphones, which will have as their main goal a female audience. According to the document, the phones will be designed, developed, manufactured, and sold by Xiaomi , while, on the other hand, the Meitu will be responsible for providing image technology and photographic algorithms.
Something that is very interesting, is that the article emphasizes the fact that the Xiaomi will be able to build another set of devices with the name Meitu . After that, the 2 phases into which this relationship will be divided are identified:
Phase 1: There will be a certain number of smartphones that the Xiaomi and Meitu will build together for sale, and once the Xiaomi will reach the agreed amount of devices, 10% of gross winnings will be given to Meitu . This will continue until, within a period of 5 years, the Meitu will receive a certain amount of gross profit from the manufacture of these Smartphones. After this extended period, the Xiaomi will decide whether it wants to proceed with phase 2 and proceed with the agreement or not.
Phase 2: H Xiaomi will pay to Meitu A specific amount for each smartphone will be sold and manufactured with Meitu for a period of 30 years, with a minimum annual profit of US $ 10 million.
Another important feature of the document is that it refers to other devices that will be developed together with Meitu, and which will not be smartphones. The Meitu for these devices, you will gain a total of 15% stake as well as gross profit for 30 years. The document states that Meitu has sold a total of 3,5 million smartphones since its inception 2013 , and although not much, the truth is that it is quite a significant amount, and that is why they decided to work with a trading partner like Xiaomi , and seek to expand into the market on a larger scale.
The main reason for her choice Xiaomi as a partner from Meitu, was the record number of Xiaomi sales of smartphones (more than 100 million units from January to October 31 of this year), in addition to the amazing IoT platform. Something that was also clarified by Meitu, is that the phones that will be manufactured together will come with the photos and social networks of applications of this company pre-installed, so that the base of their users will increase. For now, all that can be done is to wait and see what happens to this new business relationship.
