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Closed Against Open Innovation: A Comparison Between Apple and Xiaomi

Conference paper
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Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 1159)

Abstract

One of the biggest, most competitive and quicker shifting markets is the smartphone industry. Evaluating significant opportunities and being sustainable in the market is entirely up to a firm’s innovation strategy. In this article, we perform an in-depth analysis by available means to study trends and tendencies relative to Apple and Xiaomi, two completely different companies with completely different approaches. We tested the clients’ needs and perceptions, in an attempt to see if they are part of the enterprises’ strategy (in a survey, with 193 responses). Indeed, customers are interested in powerful cameras, good storage capacity and a good duration of the battery of their smartphones. The market is evaluated above 1.5 billion units sold per year and demonstrates high demand for every new model to be different, more powerful, more capable of fulfilling our lifestyle. Apple uses an incremental innovation sales strategy, based on the billions of euros used in secret research and development. On the other hand, Xiaomi performs open innovation, taking customers’ needs and ideas to the world. What is the best approach? Will it be enough to stay on top? An analysis using Google Trends shows how Nokia has faded away over time, how Apple had a spike of interest concerning its latest iPhone 11 launch; while Xiaomi is ever more popular, especially in Portugal.

Keywords

Open innovation Closed innovation Xiaomi Apple Technology Google Trends Survey 

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Copyright information

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Department of Economics, Management, Industrial Engineering and TourismUniversity of AveiroAveiroPortugal
  2. 2.Department of Electronics, Telecommunications and InformaticsUniversity of AveiroAveiroPortugal
  3. 3.Department of Ceramics and Materials EngineeringUniversity of AveiroAveiroPortugal
  4. 4.GOVCOPPAveiroPortugal

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