As per rumors, Google employees are chattering about the threats, Xiaomi, the Chinese smartphone maker, is presenting to Google. Xiaomi, with $ 45 billion worth, is proving that it is the fastest growing startup in the tech World and can pose serious and significant threat to Google with its Mi4 series of smartphone. Xiaomi’s Mi phones are the most popular phones in China, surpassing even Samsung in popularity in mainland China.
The potential threat appears for Google if the Xiaomi decides to expand its market sphere beyond the borders of China. What the Google fearing most is the potential challenge to apps of Android as Xiaomi can offer the Android users to use the Xiaomi apps instead of those of Google. With the app store of its own, Xiaomi can enter the app market with the apps to search for and purchase goods from its own retail shop and can encourage the Android users to opt for Xiaomi’s. And a more worrying news for Google is; Xiaomi is already thinking on this arena and Google has started to tighten, as pre-cautionary measures, restrictions about the usage of apps like Google Drive, Gmail, Google Maps etc.
A very interesting information about the Google and other third parties relationships is revealed by Bloomberg in 2013 that Samsung makes more financial gain from Android than Google does. This is why Google is worried about the entry of Xiaomi in its area of influence, i.e. app market. The competition is more real in software than in hardware.
Source: http://www.businessinsider.com