23 March 2019
Xiaomi's Amazon Tack To IPhone Fight May Mean 3 Years Of Losses

The Big Picture: XIAOMI’S RISE

Xiaomi Inc., which has made rapid strides in China with an array of low-cost, high-function smartphones, has emerged as the third-largest e-commerce player in the mainland in terms of sales volume, next only to Alibaba Group and Inc.

During the “Mi Fan Festival” Tuesday to celebrate its 4th birthday, Xiaomi recorded online sales of more than one million units worth 1 billion yuan (US$161.54 million), China Business News reported Wednesday.

Online sales through its own website now account for 70 percent of Xiaomi’s overall revenue, with the rest contributed by China’s three telecommunication operators as well as international markets, co-founder Li Wanqiang was quoted as saying.

To cope with the large orders, Xiaomi has set up warehouses in 10 major cities, including Beijing, Shanghai, Shenzhen and Guangzhou, along with some facilities in the Shenzhen bonded area and Taiwan.

Sales surpassed 11 million units in the first quarter of 2014. For the full year, the company is targeting sales of 60 million units, and aims to take that figure to 100 million units in 2015, co-founder Lei Jun has said.

Xiaomi remains under the spotlight in the internet market. Last month, according to mainland reports, Tencent Holdings (00700.HK) was set to become Xiaomi’s biggest shareholder through a USS$2 billion capital injection that would push the handset maker’s valuation to US$30.9 billion.

The smartphone manufacturer has denied rumors of the Tencent deal. However, in another initiative, Xiaomi is said to have entered into an agreement last month with Kingsoft Corporation (03888.HK) to set up a technology park in Beijing’s Haidian district.

–Contact HKEJ at [email protected]


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