China’s giant smartphone manufacturer Xiaomi announced that the company’s profit growth won’t be moved by the sudden withdrawal of smartphone sales said the company’s senior executive.
Last 2014, the Chinese Smartphone giant was valued at around $46 billion and it was the most valuable start-up at that time. The company missed a target of 12 percent increase in its global smartphone market last year, while the third quarter did stumble for them as their sales went down to 45 percent. According to the company’s vice-president Hugo Barra, Xiaomi’s business model was not based on money made from handset sales per se and that it did not need to raise more funds or see any point in doing so at a valuation of less than $46 billion.
The company showed a glimpse of their profit and revenues pointing to its home appliances such as the air and water purifier, rice cookers and other appliances as the key drivers for the increasing sales and revenue.
Xiaomi Recorded a Sale High in India
While the overall recession in smartphone sales, Xiaomi has reached a record high of 2 million smartphone sales in India last third quarter that started in July and ended in September. It is the highest sale recorded since the company started to manufacture and start its sales in the country.
The company attained a 150% increase for growth year-on-year basis, the head of India operation Manu Jain said; this is the first time that the company surpassed the two million plus sales in one-quarter afar elevated year than the last. The Indian market welcomed Xiaomi warmly with one out of four smartphones that are sold online are Xiaomi’s, this helped the company one of the brands that are considered as one of the fastest in the smartphone industry.
The smartphone online sales increased to 31.6 percent due to the strong performance by key online players primarily from China-based vendors according to IDC’s recent data. Xiaomi is second only to Lenovo in terms of online smartphone sales but now in the top five vendors in India. Xiaomi’s shipments doubled over the previous quarter and a 7.4 percent market share in India.
However, Xiaomi is still set to step on U.S.A.’s doors as smartphone market comes as cash-strapped rival LeEco faces a crippling shortage of funds according to CEO Jia Yueting’s letter months after the company launched its first flagship in the United States. The company is expected to debut consumer electronics earlier this coming 2017 in Las Vegas and unveiling a new product in the same event.
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