Xiaomi's claims of fast sellouts being investigated by the Taiwan FTC

Xiaomi's claims of fast sellouts being investigated by the Taiwan FTC
We've told you about some of those "hunger marketing" claims by Xiaomi. The most recent one was reported Tuesday, when an undisclosed number of Xiaomi Mi3 units were sold out in India after just five seconds. Another batch will be sold on August 5th. But it turns out that the Taiwan Fair Trade Commission has been receiving complaints, and is investigating these claims. One of the cases being looked at involved the Xiaomi Red Rice, which was involved in a "hunger marketing" campaign last December.

The Taiwan FTC is concerned about how the "hunger marketing" process hypes up a phone, making a particular model seem more valuable, or hard to find, than it really is. If it turns out that Xiaomi has been exaggerating the number of phones sold, or the speed in which they were purchased, the manufacturer could be fined $20,000. In this case, it is not so much the company's vault, but its reputation, that would take a hit.

There is talk that Xiaomi had sold only a few hundred units in one sale from 2013. In other situation, the manufacturer is believed to have shut down sales before the inventory was sold out.

Thanks for the tip!

source: iapps.im (translated) via GSMDome

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32 Comments

1. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Looks like some jealous Taiwanese OEM is behind this

5. AnTuTu

Posts: 1580; Member since: Oct 14, 2012

Fact :)

7. Neo_Huang

Posts: 1067; Member since: Dec 06, 2013

HTC, Asus, or Acer?

15. dimas

Posts: 3262; Member since: Jul 22, 2014

Or maybe big phone companies formed secret alliance to lobby in Taiwan FTC because they see Xiaomi's selling method as life threatening to their profits? Most start up business with promising developments get that kind of treatment from the bullies. First was the news about redmi note sending private datas then this. I see patterns.

2. naittosan

Posts: 239; Member since: Jun 28, 2014

What some losers

3. pwnarena

Posts: 1129; Member since: Feb 15, 2013

i don't understand what's wrong with that. it's not like they won't eventually have to report their real net income for taxes.

22. AstronautJones

Posts: 305; Member since: Aug 01, 2012

It is a publicly traded corporation. They are not supposed to give out false or misleading sales. Maybe that is the issue. People selling or buying stock based on erroneous info.

24. WahyuWisnu

Posts: 1001; Member since: May 29, 2014

AGREE with this statement. If XiaoMi cheat on the number of device sold, claiming more than it should be, they would EVENTUALLY have to pay income taxes based on the number that they claimed.

4. andynaija

Posts: 1247; Member since: Sep 08, 2012

How do you pronounce Xiaomi properly?

6. Neo_Huang

Posts: 1067; Member since: Dec 06, 2013

She Ow Me.

8. marcski07

Posts: 600; Member since: Apr 25, 2014

not Shia-ow-mi? or Sha-yow-mi? :)

12. quakan

Posts: 1418; Member since: Mar 02, 2011

I've been saying it wrong all this time lol.

19. dimas

Posts: 3262; Member since: Jul 22, 2014

Neo_Huang I think that's what Apple's been telling Samsung with all it's patent lawsuits all these years.

25. WahyuWisnu

Posts: 1001; Member since: May 29, 2014

LOL. Big lol

18. dimas

Posts: 3262; Member since: Jul 22, 2014

She-Aw-Mee? That's just me. I think British people pronounce it as Show-Mee.

32. gaara6775

Posts: 738; Member since: May 20, 2014

Sha-O-me . but not Show-me :p

9. CraalLegacy unregistered

Xiaomi is headed for the crash and burn. Reputation is everything and Samsung has a sterling one; Xiaomi is digging its own grave with these antics.

10. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Unlikely the has the second biggest marketshare in China. They can forego taiwan without impact to their sales. A lot of friends is still hoping to buy one.

11. CraalLegacy unregistered

U do know Taiwan is China, right?

14. darkskoliro

Posts: 1092; Member since: May 07, 2012

Legally, but hardly.

21. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Taiwan has their own army, elected goverment and parliament. So tell me again that Taiwan is China.

26. CraalLegacy unregistered

Taiwan is China and I see you r confused by client and vassal states. Well, that's ur fail.

23. NewBBUser

Posts: 10; Member since: Mar 08, 2014

@CraalLegacy: Politically speaking, no, Taiwan isn't China. China claims Taiwan as their own, but Taiwanese says otherwise. Every time Taiwan wants to claim independence (Republic of Taiwan), China threatens them with another war. No Taiwanese claim themselves as Chinese.

27. CraalLegacy unregistered

There is no "politically" speaking as that is the only way Taiwan can be discerned; it is China and has no agency of its own. U r not smart.

28. NewBBUser

Posts: 10; Member since: Mar 08, 2014

You never went to school? If you did, you didn't learn anything about the Cold War. Taiwan is ROC. China is PRC. No one with a right mind would consider themselves Chinese after they fled the mainland after losing the Cold War, developed their own government on an island. Taiwan has functional and independent government, and conducts regular and free elections. Taiwan has its own internationally accepted currency. Taiwan has a standing army, air force, navy, coast guard, and marines. Taiwan issues its own passports for international travel, and IDs for its citizens. Taiwan has its own stock exchange and Constitution. Still think Taiwan is China?

29. CraalLegacy unregistered

I can't fix u, I can't fix stupid.

30. NewBBUser

Posts: 10; Member since: Mar 08, 2014

says the person who thinks a country can have two different government and two different presidents. LMAO. Arguing with you degrades my intelligence. Facts are facts. The only thing that's stupid are your comebacks. Go talk to a Taiwanese or read some history books.

31. WahyuWisnu

Posts: 1001; Member since: May 29, 2014

...and this is why America feel China is a threat? ...even UN didn't put taiwan as a country! Only USA think that because USA hate China/Chinese

17. dimas

Posts: 3262; Member since: Jul 22, 2014

Surprising comment. To think that people are getting tired of laggy crash-inviting touchwiz, market flooded with different gadget variants with confusing price brackets and not to mention their ugly washing machine design. More like Samsung's gonna freak out on new start up companies if they don't straighten their gadget line ups.

13. p51d007

Posts: 697; Member since: Nov 24, 2013

WOW! Then they could REALLY go after OnePlus and their "flagship killer" eh?

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