Recruiting in China

Last week, Xiaomi Inc revealed its major achievements for the past year. In 2013, the tech up-and-comer sold 18.7 million handsets, up 160 percent year-on-year and well above the 15 million unit production target it set at the beginning of last year.

Based on its recent successes, Xiaomi founder Lei Jun promised to turn out 40 million handsets in 2014.

Enhancing productivity is now a top priority for Xiaomi, according to internal e-mails which also state that the company can't keep up with demand.

Xiaomi appears to be breaking away from the starvation marketing strategy it has employed so skillfully to build a name for itself over the past three years. At this juncture, this is a wise move for the company.

In the beginning, Xiaomi could have made a convincing case that its limited output was the natural result of its limited production capacity. But now that Xiaomi has earned billions and is one of China's largest tech brands, such a lame argument would only hurt the company's reputation.

Moreover, scarcity is no longer a useful tool now that the market is overflowing with inexpensive, feature-packed smartphones.