Even though the sales of Xiaomi smartphones are going down, they don’t add up much money to the company according to Hugo Barra, Global VP, Xiaomi. He said that “We could sell 10 billion smartphones and we wouldn’t make a single dime in profits. Basically, we’re giving them to you without making any money… we care about the recurring revenue streams over many years”.
Xiaomi doesn’t need to hit up their revenue with their smartphones and that’s why they don’t care about the smartphone sales decline. They’re always up to make the profit from their connected home devices and their software ecosystem. This is why to Xiaomi, smartphone sales are somehow important but they don’t help them financially anyways.
Xiaomi had been performing badly in the smartphone division but Xiaomi’s VP Liu De said in April that the company expected sales of smart home devices to double to 10 billion yuan ($1.5 billion approximately) this year. With CES 2017 up ahead where much new stuff from Xiaomi has to show up, Xiaomi might target the US market to boost the smartphone sales up.
Xiaomi will recover from their current smartphone plummet. We can already see how Xiaomi is performing in India so far with a huge amount of sales over there.
