It wasn't so much a matter of being "highly regarded" as it was being overly hyped. I am not sure if it was the media’s fault or Xiaomi’s own PR efforts, but the nonstop “Steve Jobs of China” headlines and fawning articles about the hardware and Miui were over the top. When Xiaomi was listed #2 in Technology Review’s “50 Smartest Companies” of 2015 (behind Tesla, 1) I was flabbergasted — yes, they are nice phones (we own a Hongmi and a another larger-screen phone whose name I can’t remember) but there are lots of problems with Xiaomi’s Android implementation, and the low-cost strategy is clearly not sustainable.
Design can only take you so far in the Android universe, as the HTC example demonstrates (2). Undercutting competitors on price is also not a long-term strategy.
1. https://www.technologyreview.com/lists/companies/2015/
2. http://www.recode.net/2016/4/12/11586042/htc-10-looks-to-mak...