Pre-orders for Hongmi (Red Rice), an entry-level smartphone launched recently by China-based Xiaomi Technology, have reportedly reached seven million units, but Taiwan-based supply chain makers are conservative about the figures saying component orders they have received are far below the estimates.

　　Other industry sources predict that total sales of Hongmi, which goes on sale in China on August 12, will reach five million units, based on its product life cycle of 5-6 months.

　　While orders received by makers in Xiaomi's supply chain, which include Taiwan-based panel maker AU Optronics (AUO) and chipset solution vendor MediaTek, are currently lagging behind estimated sales volumes, most component suppliers are not overlooking the potential of the Hongmi, and are ready to land more windfall orders from Xiaomi, said the sources in the supply chain.

　　Xiaomi's decision to extend its product line from high-end to entry-level will not only result in a squeeze-out effect on white-box smartphone vendors but also force domestic and foreign brands to adjust their product strategies, commented the sources.

　　Since the launch of its first smartphone, the M1, in 2011, Xiaomi has outperformed a number of branded vendors, including Apple, HTC, Nokia, Sony Mobile, LG Electronics, BlackBerry and Motorola Mobility, in terms of market share in China's smartphone space.