Xiaomi, the Chinese Android manufacturer which heavily bases its product designs and marketing on Apple products, is to invest $1B in the Chinese YouTube equivalent, Youku.

Xiaomi has long been aware of the importance of an integrated hardware-and-services offering, initially selling its smartphones at cost-price in order to build market share, relying on its app store to generate profits. A tie-in with a video service makes similar sense – smartphones and tablets providing an audience for video content, and video content driving demand for devices on which to view it – but the move is likely to be primarily driven by Xiaomi’s move into the smart TV market …   expand full story