Xiaomi adds key Google executive to its team

Google has lost a top executive from its Android management team to fast-rising Chinese smartphone maker Xiaomi, less than six months after the head of the US company’s mobile platform stepped down.

The appointment signals Xiaomi’s intention to take on Apple and Samsung Electronics Inc. overseas after building market share by selling handsets priced at less than a third of the iPhone 5 in China. Lenovo Group Ltd., Huawei Technologies Co. and ZTE Corp. all used the local market as a springboard to become among the largest smartphone makers in the world.

“Hugo Barra can bring his international experience on products and relationship with ecosystem partners to Xiaomi,” said to Bloomberg Nicole Peng, the China research director for Canalys. “This can be a huge step for Xiaomi if they make it right.”

Xiaomi, having priced latest handsets as low as $130, is one of the more ambitious smartphone makers in China, where the market for lower-end devices has been booming. Often compared to Apple for its ability to build excitement around its brand, it has ambitions to expand further into digital services, such as games. Its investors include Singapore’s sovereign wealth fund Temasek.

In Chinas smartphone market, Xiaomi advanced to sixth place in the quarter ending June 30 from eighth a year earlier, Canalys said Aug. 9. Apple was seventh.

Xiaomi has won sales with inexpensive handsets running Google’s Android system. While Apple sells the iPhone 5 on its China website from 5,288 yuan ($864), Xiaomi’s most expensive handset is 1,699 yuan.

Starting this month, Xiaomi began sales of its first device for China Mobile, the world’s largest phone company with 745 million subscribers at the end of July. The handset is priced at 799 yuan. Apple has yet to offer a device through China Mobile.

News of Mr Barra’s departure broke as it emerged that Sergey Brin, Google’s co-founder, had separated from his wife. Mr Brin is said now to be in a relationship with another Google employee, who works in marketing for Google Glass and who had previously been Mr Barra’s girlfriend.

One person at Google familiar with the situation said Mr Barra’s departure was unrelated to any of these relationships. Mr Barra did not respond to a request for comment.

Google share price have dropped shortly after disappointing earning report. However, company is still up 20% since the beginning of the year.