After overtaking Apple and Samsung in the world's largest market, Chinese smartphone maker Xiaomi is now facing the threat posed by counterfeiters.
Chief Executive Officer Lei Jun said that due to the large number of fakes available in the market, the firm's Mi Power Bank battery pack for smartphones sold 14.6 million units last year, less than half of what the total should have been. He added that if there were no counterfeits, then their sales would have doubled or tripled, reported China Daily.
According to Jun, five years after its foundation in 2010, Xiaomi has already grown into China's top smartphone vendor and the world's most valuable startup but now, it must tackle "growing pains from counterfeits to perceptions that investments in smart-device startups risk compromising strategic focus."
The startup doubled its revenue last year and more than tripled its smartphone shipments. The company's sales are expected to rise to about 19 billion dollars this year, Jun said.