Xiaomi Seems Calm As Its Smartphone Sales Decline
As of late, Xiaomi has dropped out of the top three cell phone makers in the Chinese market. Before, the company successively positioned first or second in every quarter of the year, along with its significant rival, Huawei. However, Xiaomi, as an organization is not worried against a lofty drop in the smartphone business while seeing competitions like Vivo and OPPO, take over the market. But why?
As reported by Reuters, the company claims that its smart phone sales had nothing to do with its profits as it's the home appliance and software ecosystem business that brought the money. Its home appliances consist of rice cookers, washing machines, security cameras and purifiers.
''Basically we're giving [handsets] to you without making any money, we care about the recurring revenue streams over many years', said Hugo Barra, Xiaomi's global vice president. He also added that the company could sell 10 billion smartphones and still would not make a single dime in profits from the sale.
Getting over worries that Xiaomi could face a comparable financing problem to LeEco, another Chinese smartphone maker, Barra also mentioned that the company has no pressing need to start an IPO or even a private offer to gain more investment. "We are not a flash in someone's PR pan," he added.
According to Android Headlines, Xiaomi is prepared to reveal a completely new line of products at the Las Vegas Consumer Electronics Show (CES) next year. The report also noted that the chances of unveiling new smartphones are thin, thereby solidifying the company's claim of independence on smartphone sales as a major profit basket.
In 2014, the company was valued at $46 billion as a fresh company after fundraising. Since then Xiaomi's performance gradually decreased in China. According to CNET, the company has recently made investments in the Southeast Asia and India. Xiaomi is also looking forward to sell products in the U.S.