Xiaomi: the weight of the ambitions

when the company launched its first phone in 2011, it was presented as the competitor low-cost Chinese that would compete with Apple, Samsung leaders but (especially) other manufacturers that dominated the market of smartphones at the time. When the company began, it must also admit that it was not as easy as it is today ‘ hui for courageous newcomers to get a phone on the market.

The result of all this is that there are now more phones with prices of mid-range that ever, which means that Xiaomi is no longer the only choice for those who want a quality product without spending too sophisticated. In my first year to sell phones, Xiaomi reported revenue of 8 billion yuan, or slightly more than 1 billion euros for its first year.

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the Mix of Xiaomi Mi is the newest member of the family. © AndroidPIT

not surprisingly, with this quick success and a surprising resemblance to the mark to Apple, Xiaomi phones has been inevitably compared to Apple . The comparison does not stop there, launch events were often similar to the keynotes of the brand. Here again, it’s a performance for a young brand (or a lack of creativity).

But apparently, these are the limits of the comparison. In 2017, Xiaomi evolves in a different setting. The loss of Hugo Barra weakens clearly the company and will certainly be damaging to the constructor in the short term.

On the side of phones, Xiaomi will also miss the Mobile World Congress, a crucial date in the world of smartphones where brands present their latest and greatest devices. 

Money, money, money

with more competitors in the market, maintain its excellent performance from the beginning would anyway be a delicate challenge. In 2013, the back of Xiaomi had peaked up to a little less than EUR 4.5 billion but profits on this figure was “only” about 52 million euros after taxes; with margins so thin that a fall in revenues or demand for its products could make the future otherwise more complicated.

In 2014, Xiaomi recorded another strong year of growth (135 percent to 10.8 billion euros of revenue), but therefore, revenues have capped, with a lack of growth in 2015 if we take into account currency fluctuations during the period.

Well, 10.8 billion euros in revenue, is not exactly a failing firm – having profits leveled off this is not the same thing that losses – but from 135 percent growth to 2% had to be a worrying sign. 

In China, in 2015, in the smartphone market has grown also to 2.5% , and 2016 has seen l a first decline worldwide in Smartphone sales with a contraction in the Indian market specifically, where Xiaomi much won a lot.

If the latest reports, indicating that lines of Xiaomi will fall by 2%, are correct, it is not surprising that the manufacturer has attempted to support my case in expanding to other devices (Yes, that includes this air purifier ) and by providing a Web service.

Indeed, the CEO and founder of the company, Lei Jun, told Wired the year that he would not be seen as a business smartphone. “Neither as a company making only devices.”

think of Xiaomi as a company that brings innovation to everyone. We focus on high quality products that help create a connected lifestyle for all in a period of technological innovation. It’s not just smartphones, tablets, televisions and routers – we invest in startups form what we call an ecosystem. They make products that are sold on Mi.com, banks of portable technology energy through water purifiers, so we have hundreds of products that combine to make this lifestyle.  

it may seem unusual for a company that has sold more than 70 million phones nothing that in 2015 (which was, frankly, below the target of 100 million, magazines then down to 80 million) which has more than 150 million users worldwide, but it is certainly smart, considering the recent downturn in sales of smartphones.

redminote 4 blu
Redmi Note 4 of Xiaomi Xiaomi

that the departure of Barra announces a new approach for the company or not remains to be seen, but this departure is taken as a signal that the future is not so rosy that it looks.

Do you think that the departure of Barra of Xiaomi is going to hurt the company?

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