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You know why this shit phone sold well? Because the advertisements of this shit are almost everywhere in China. Chinese now get one idea: if I want to buy a smart phone, there are only two choice, Xiaomi or iPhone. However, most people get another idea after they use Xiaomi for a time: Xiaomi is just a shit. This company, really spends all of their money on their advertisement. That really makes their phones become shit.

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I really doubt you ever used a XiaoMi phone, or been in China. First of all, you mentioned you saw XiaoMi 'everywhere in China'. Where did you see XiaoMi advertisements? Here in Shanghai, I do see Samsung and even ZTE ads very often and I still fail to remember I had ever come across of any XiaoMi ads in Puxi. If they are 'everywhere', the Metro must be covered somehow, right? Sorry, no luck, I didn't see any. XiaoMi does do marketing, but mainly on Weibo, which is the China version of Twitter. Second, XiaoMi has fallen so far in supplying enough phones that people have been waiting for weeks (A lot of people this is XiaoMi's starvation campaign, well, it makes sense a few months ago, but not likely now since competition has been so fierce). So, up until now, if you wanna buy a smart phone in China, XiaoMi is usually not available at the counter, and you may be amazed to know Samsung has really invested in marketing and channel development in Greater China these days ;)

"Xiaomi has already sold 300,000 of its latest phone model, launched in October."

It doesn't even look like the phone sold well; it sold out, but not well. Numbers like that will not be concerning to Apple, HTC, Samsung, et. al.

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