Millet America difficult to stay, why?

February 13 News, The Motley Fool, an American renowned financial website, publishes an analysis of Sam Matro (Sam Mattera). The article points out that the business model of Millet is similar to Amazon's hardware products, it can be successful in China, but in the United States may face failure.

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This is the full text of the article:
 
It didn't take long for the Chinese smartphone market to open.
 
Less than five years ago, Millet is already one of the largest smartphone manufacturers in China. In the second quarter of last year, millet handsets sold more in China than other peers. In the fourth quarter of last year, when the IPhone 6 was listed in China, Apple overtook millet, but the fast-growing start-up is still second.
 
Millet seems to be a strong competitor in China, but it is hard to expect it to replicate similar successes in the US. The MIUI operating system that millet relies on is a branch version of Google (Weibo) 's Android software (forked version), which makes it difficult for business models to succeed overseas.
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relies on the MIUI millet
 
business model of Millet is quite straightforward: it sells high performance devices at a lower price. Millet's current flagship model MI 4, in technical parameters comparable to Samsung's Galaxy S5, but the retail price is much cheaper than the latter.
 
How does millet achieve this? The company's executives offer a number of reasons, such as a lack of traditional advertising spending, to ensure better cooperation with the supply chain. However, the biggest problem with millet is software.
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The software used by the millet phone is the branch version of Android, the MIUI. The system goes beyond Google's services, and accordingly joins its own services, such as MIUI games, MI life, and MIUI dictionaries. In this area, the most worth mentioning is the MIUI market, this is also the application of millet store. Users of millet do not download apps using Google Play, they use the MIUI market. Be aware that it is millet, not Google, that has been pumped into the revenue from the application.
 
Millet co-founder and President Lin revealed the company's philosophy of profitability when he received the Next Web interview with a leading technology media: Millet does not seek to make money by buying its hardware from users, but wants to generate revenue by using its devices.
 
Lin said: "We think the hardware is just a platform to run the service." We don't expect to make money on hardware, we want users who buy our hardware products to use our services, that is, these services eventually bring revenue. "
 
Amazon Fire Phone
 
The philosophy of millet is strikingly similar to Amazon's. Jeff Bezos, Amazon's founder and CEO, told the BBC in 2012 that the company didn't expect hardware to make money, but that itHardware products to promote the sale of digital goods.
 
, like the millet device, the operating system Fireos the Amazon product is also a deeply modified Android software. Fireos also removed Google's services and replaced it with Amazon-related products. Amazon's Kindle Fire tablet, for example, relies on Amazon's App store instead of Google Play. Like Millet, Amazon's devices tend to have higher technological performance than their prices.
 
However, Amazon's strategy does not seem to have achieved the same success as Millet, which is particularly prominent in mobile phone products. Amazon's Fire Phone was one of the most disappointing products of the 2014, with 35,000 units sold in the first 25 days of the listing. By contrast, Apple's iphone 6, the iphone 6 Plus, sold for the first weekend in 10 million units.
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Amazon has a bright spot in tablet computing, but it's not a significant achievement. Amazon is the first to sell 7-inch display tablet computers, but as competition intensifies, the popularity of this type of products has plummeted. Earlier this month, IDC, a market-research firm, reported that Amazon's tablet shipments fell nearly 70% per cent year-on-year in the fourth quarter of last year.
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China is not a U.S.
 
Millet may do better than Amazon, but I still don't care about it, at least in the current environment.
 
Americans also like bargains, but they can afford more expensive technology products. On the whole, America's consumers are richer than the Chinese, and American operators are more generous in subsidizing and providing money.
 
Compared with China, the US is a mature smartphone market. Google has a firm foothold in its services. Although Google Play does not have a large presence in China, it is dominant in the United States, especially its search and maps.
 
If Millet wants to compete in the U.S., it either chooses to use a different business model, uses more traditional Android in the product, or offers smartphone users the services they can't refuse, so they are willing to give up Google. At present, any company, including Amazon, has not been able to do this.
 
in China, and possibly in other emerging markets, millet is certainly a threat to Google and Apple, but it is unlikely to succeed in the US given the business model.