[chetanahuja]

"Xiaomi's new Mi Band includes heart rate tracking and is priced well below any competition, making it more suitable for impulse buying than any other fitness band. Despite its worldwide growth in 3Q16, the company managed to lose market share as almost every other vendor outpaced its growth. Xiaomi, across all business lines, continues to struggle to gain any significant traction outside its home country of China."

Problem with Xiaomi have been more supply side than demand side. I know because I tried to buy MiBand 2 when it originally came out and for weeks most vendors were sold out. It's possible that Xiaomi is having trouble keeping up the manufacturing volumes at the low price point they've entered the market.