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Xiaomi's smartphone sales drop, but they aren't worried
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- Xiaomi blew everyone's mind last month when they announced their Mi MIX phone, which whether you like it or not, brought some innovation and courage (not the "let's remove the headphone jack" courage) to the market.However, the company, according to the recent report from the research firm IDC, is struggling with smartphone sales.Last year, they missed their global smartphone target by 12%, and this year's Q3 sales in China, which is their primary market, have dropped by 45%.
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Xiaomi says shrinking smartphone sales won't hit the company
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- Xiaomi was valued at billion in its last fund-raising in 2014 – making it briefly the world's most valuable start-up Xiaomi was valued at billion in its last fund-raising in 2014 – making it briefly the world's most valuable start-upSharp drops in smartphone sales for China's Xiaomi Inc will not have a major impact on the company as profit growth will be driven by sales from smart home devices as well as revenue from its software eco-system, a senior executive said.Xiaomi was valued at $46 billion in its last fund-raising in 2014 – making it briefly the world's most valuable start-up at a time when it was China's best-selling smartphone maker and looked set to make a splash worldwide.But last year it missed its global smartphone targets by 12 percent, while its third-quarter China smartphone sales have tumbled 45 percent, according to research firm IDC – raising doubts that the valuation is still warranted.
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Xiaomi's Hugo Barra makes dubious claim that Xiaomi isn't hurt by company's declining smartphone sales
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- In an interview with Reuters, Xiaomi's Hugo Barra addressed a question that seems to be one the company has managed to avoid to date: its declining smartphone sales.For all the hype Xiaomi has generated over the last few years, it has recently experienced a sudden and dramatic shift in sales figures - and not in the right direction.In Q1 2016, Xiaomi's handset sales were estimated to be down 25% over the previous year, versus a global smartphone shipment decline of just 0.1%.
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Xiaomi admits it doesn't make money on smartphone hardware sales
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- Xiaomi's business model isn't about selling handsets, except insofar as those handset sales lead to recurring service revenue later on.So said Xiaomi global VP and former Android VP Hugo Barra in an interview with Reuters.The executive for the device maker was commenting on a drop in its smartphone sales in China, explaining that they wouldn't impact the company's long-term profit growth.
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Hugo Barra: Xiaomi's smartphone sales drop in China wouldn't impact its long-term profit growth
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- During the course of a recent interview with Reuters, Xiaomi's Hugo Barra - the company's global VP and former Android VP - said that the company's long-term profit growth will not be affected by the decline in its smartphone sales in China.Barra said that the Xiaomi business model is about selling smartphones only to the extent that the company can, later on, generate recurring service revenue on the smartphones sold by it.In an explanation of his comments, which came against the backdrop of Xiaomi's increasingly lackluster smartphones sales in China, Barra said that 10 billion smartphones can be sold by Xiaomi without making a single time in profits.
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