Xiaomi Takes Over Meitu’s Smartphone Business for Improved Selfie Cameras

We may have a lot of Chinese smartphone brands in Pakistan, but you may not have heard of this one. Meitu was originally known for making selfie beautification apps for phones. Then it started making its own smartphones, which were also focused on selfies. Sounds a lot like Oppo doesn’t it?
Based on the latest news, Xiaomi has entered into an agreement with Meitu, where the former is going to handle the latter’s hardware business, including design, R&D, marketing, and sales, for the next 30 years. Meitu will hold on to the camera department.

Deal Specifics

The two companies will not be entering into a merger or an acquisition, instead, they will form a strategic partnership over the stipulated period.
Other than smartphones, Xiaomi will also be selling certain smart products using the Meitu brand name. Xiaomi already has a pretty extensive range of smart products, so we’re not sure how Meitu will fit into the picture.
Under the agreement, Xiaomi will be liable to pay Meitu a 10% profit share for the first five years of the deal, or until the profit reaches a certain threshold. After that, Xiaomi will then pay a fixed amount per device for 30 years.

What Does Xiaomi/Meitu Get From This Deal?

This deal seems like a way for Meitu to save itself from going bankrupt. Everyone knows that Oppo is famous for its selfie-focused F-series and has made quite a name for itself in China as well as international markets.
On Xiaomi’s side of the deal, this could be a way to tap into a new audience. Meitu primarily sells to young female buyers while Xiaomi caters to men between the ages of 30-34 (according to Technode), accounting for 69.1% of its buyers. This is similar to Huawei, which also caters to mostly male buyers (66%).

Expansion

Xiaomi’s experience in the design and marketing department could help push the selfie-centric Meitu brand, and also expand its reach among new audiences.
This partnership could also mean that we see Meitu phones launching in other countries as well. We’ll have to wait and see how this develops over time and whether it actually helps Xiaomi/Meitu in the long run.