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Xiaomi Air Conditioner Patent Infringement: Gree Dispute and Market Share Growth

The ongoing debate surrounding Xiaomi air conditioner patent infringement has recently gained significant attention. Dong Mingzhu, the chairwoman of Gree Electric Appliances, made bold claims about Xiaomi’s air conditioners during her appearance on the “Zhen Zhi Ju Jian” show. She asserted that Xiaomi had infringed on Gree’s patents, even mentioning that Xiaomi had paid her 500,000 yuan for patent violations. These statements quickly went viral, igniting a fierce discussion online.

Dong Mingzhu and Lei Jun
Dong Mingzhu and Lei Jun

The Beginning of the Xiaomi Air Conditioner Controversy

During an appearance on the “Zhen Zhi Ju Jian” TV show, Dong Mingzhu was asked about her thoughts on Xiaomi air conditioners. Her response, which hinted at a dispute, quickly went viral. She stated, “You ask him to speak for himself. We are the best in the world with hundreds of thousands of patents. Xiaomi recently paid me 500,000 yuan for patent infringement.” This bold statement ignited a debate about potential patent violations.

Dong Mingzhu revealed that Xiaomi air conditioner patent infringement paid 500,000 yuan
Dong Mingzhu revealed that Xiaomi air conditioner patent infringement paid 500,000 yuan

Xiaomi Refutes Patent Infringement Claims

In response to Dong Mingzhu’s accusations, Wang Hua, the general manager of Xiaomi’s public relations department, swiftly issued a statement denying the patent infringement claims. He emphasized that Xiaomi had not been involved in any patent infringement related to its air conditioners and had not made any payments to Gree for such matters. His statement also highlighted Xiaomi’s previous rebuttal concerning similar patent infringement claims in July, where Gree had accused Xiaomi’s electric fans of violating its patents.

Wang Hua refutes rumors about Xiaomi air conditioner infringement
Wang Hua refutes rumors about Xiaomi air conditioner infringement

The Ongoing Patent Dispute Between Gree and Xiaomi

The patent dispute between Gree and Xiaomi is not new. Earlier in 2023, Gree had filed a lawsuit claiming that Xiaomi’s electric fans infringed on its patents. Gree’s legal action resulted in Xiaomi being ordered to pay a substantial sum for the infringement. Despite this, Xiaomi maintained its position, asserting that no legal action had been initiated regarding its home appliances, including air conditioners.

Gree claims Xiaomi electric fan infringes copyright
Gree claims Xiaomi electric fan infringes copyright

Xiaomi Air Conditioners Gain Market Share

Amidst the patent dispute, Xiaomi’s air conditioner sales are on the rise. According to Aowei Cloud Network, Xiaomi air conditioners secured third place in the Chinese online market for air conditioners by the end of 2024, with a market share of 11.82%. This growth has raised concerns at Gree, which has seen its market share slightly decrease despite remaining in second place.

Xiaomi Gree air conditioner dispute: Infringement or own share is approaching, but it is real

In fact, Xiaomi’s air conditioner shipments exceeded 5.69 million units in the first three quarters of 2024, putting considerable pressure on Gree. While Gree’s air conditioners continue to lead in total sales, Xiaomi’s rapid growth suggests that the competition between these two giants is intensifying.

Xiaomi Gree air conditioner dispute: Infringement or own share is approaching, but it is real

Gree’s Response and Xiaomi’s Rising Presence

Gree has acknowledged Xiaomi’s impressive progress in the air conditioner market. However, Gree remains focused on its continued innovation and leadership in the sector. To maintain its dominance, Gree’s annual report revealed that the company produced over 163 million air conditioners in 2023, with 156 million units sold.

On the other hand, Xiaomi’s expansion into the home appliance sector, including air conditioners, is gaining traction. Xiaomi’s dedication to smart technology, competitive pricing, and customer service has allowed the company to rapidly grow its presence in the market.

Xiaomi air conditioner sales exceeded Gree's in some periods of time
Xiaomi air conditioner sales exceeded Gree’s in some periods

The Future of Xiaomi’s Air Conditioners

Looking forward, Xiaomi’s air conditioner business is poised for further growth. The company has recently laid the foundation for its first smart home appliance factory in Wuhan. This move will allow Xiaomi to manufacture its air conditioners in-house, further bolstering its position in the home appliance industry. As Xiaomi’s product range grows and the company refines its air conditioning technology, it could become an even stronger contender in the fight for market share.

Xiaomi smart home appliance factory starts construction
Xiaomi smart home appliance factory starts construction

Conclusion: Is Patent Infringement the True Issue?

While the ongoing patent dispute between Gree and Xiaomi continues to capture attention, the real issue may be the increasing competition in the air conditioning market. Xiaomi’s rapid rise in market share, coupled with its aggressive innovation strategy, is undoubtedly putting pressure on established brands like Gree. As both companies continue to develop new technologies and expand their product offerings, the air conditioner market is sure to remain highly competitive.

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