Xiaomi finally turning things around after struggle in 2016, shipped 23.16 million smartphones in Q2, 2017 globally
Turning things around have always been the most difficult task for any organization, and when we are talking about one of the fiercely competitive industry like smartphone than its something unheard of Xiaomi had a meteoric rise during 2013 and 2014, the company was lavishly throwing sales figures from 7.2 million in 2012 to 18.7 million in 2013 and 61 million in 2014. Then came the year 2015 during which Xiaomi ambitiously tried to target sales of 100 million units but failed miserably and not surprisingly stopped sharing sales figures afterward.
All was changed on Friday when Xiaomi founder and CEO Lei Jun sent a letter to employees which stated that Xioami has shipped 23.16 million smartphones in Q2, 2017, which is up by 70% from Q1 2017 making it the best ever quarter for the Chinese tech giant.
Success in India and China have been the major driving force behind the turnaround, pressed by the roaring success of Oppo and Vivo in China and India, Xiaomi revised their strategy of online focused sales channel and started building the retail network in 3rd tier and 4th tier cities in China and India. Xiaomi global business has contributed significantly to revenue from the indian region increased by 328% year-on-year. Redmi Note 4 was the highest shipped smartphone in India, Xiaomi also opened the first Mi Home outlet earlier this year signifying the importance of Indian market for Xiaomi global plans.
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Alongside a more aggressive retail strategy, Lei Jun noted that the company’s focus on R&D gives it an edge in this space. Xiaomi introduced its first -in-house chipset, the Surge S1, earlier this year, and Jun also highlighted advancements it made with the camera and battery technologies with the Mi 6 and Mi Max 2.
Looking forward, Lei Jun is setting a revenue target of $14.7 billion (100 billion Yuan) for 2017, along with a shipments target of 100 million for 2018:
“Today’s accomplishment is not an easy feat. We offer our sincere gratitude to all of our Mi Fans for the trust they have placed in us over the years. We are grateful to our partners for their support, and especially to Xiaomi’s 13,000 employees and families for your dedication.
The smartphone market is brutally competitive, and we are only taking the first steps in our journey. In order to continue growing, we must keep true to our core values, and innovate relentlessly. We have to give our engineers the freedom to think outside of the box and explore fearlessly without boundaries.
We set no limit when it comes to innovation and investment. In the next 12 months, we will need to hire thousands of R&D talent for our smartphone business and further bolster our innovation capabilities.
I told everyone at the start of the year that the most difficult times are behind us. I also set a humble revenue goal of RMB 100 billion for the year. I am now confident we can achieve this goal. A new chapter for Xiaomi has just begun, and so many possibilities lie ahead of us. Our future is as vast as the constellations and beyond.
Finally, let’s just add another humble goal: to ship 100 million smartphones in 2018!”